A group of housing scholars argued that there is a direct link between the harm to borrowers documented by people such as Rugh and financial losses incurred by cities. Citing more than a decade of economic and sociological research from a variety of sources, Justin Steil, a professor of law and urban planning at MIT and one of the authors of the brief, explained, “the data is well established that foreclosures do lead to decreases in neighboring property values, which then lead to decreases in city revenues in an amicus brief filed in support of Miami. Foreclosures, ” he included, “also trigger more expenses because of the populous town in re-securing those properties, working with the vandalism, squatting, fires. And in case the areas don’t recuperate, it simply stays a continuing problem for those communities to cope with. ”
Supporters for the banking institutions in this full case state that if any such thing, leaders of towns like Miami encouraged the influx of credit to their municipalities.
Supporters regarding the banking institutions in this case say that if such a thing, leaders of metropolitan areas like Miami encouraged the influx of credit to their municipalities. “I think Miami would like to have this both ways, ” stated Mark Calabria, manager of monetary legislation studies in the Cato Institute. “If the banking institutions weren’t conducting business in Miami, they’d have trouble with that. It’s hard for me personally to think that Miami might have been best off if Bank of America and Wells Fargo hadn’t been there. ”
There’s been an attempt to find out more generally speaking what might have occurred in the event that banks hadn’t offered this type of glut of high-risk loans, especially to minority borrowers staying in segregated communities, based on Dan Immergluck, a urban planning professor at Georgia Tech. Immergluck hasn’t looked over Miami particularly, but he’s got been learning the disparate impact of high-risk loans for longer than two decades.Continue reading