I have seen quite a few changes in the real estate business over the past 36 years. When I started my real estate career as a sales person in 1972, I had no idea I would see the changes that would take place over the span of my career. There have been some bad things I have seen and experienced and there have been many positive changes that have occurred during those years.
I remember when some Realtors and lenders openly practiced racial discrimination in housing. I have experienced it first hand. I remember when real estate agents had code words they would use when they were setting up an appointment to show homes. If the customer happened to be a racial minority, they would call the listing agent or the seller and ask if it was "ok" to show the home to an "ABC" customer. "ABC" was the code word for minority buyers in the Chicago area in those days.
In 1971, I was a 23 year old, financially qualified home buyer. My wife and I had signed a contract to buy our first home, in a "good middle class suburb". We were quickly approved for a mortgage, based on my good job history and excellent income. I was a store manager working for a large supermarket chain and was earning an above average salary.
When my wife and I went to the closing we encountered one of many signs of discrimination and conflict of interest by lenders and others. Let me explain. The closing took place at the offices of the bank that made the mortgage. In those days it was not uncommon for an officer of the bank to wear more than one "hat" at the closing. A senior V.P. at the bank also "represented" us as our attorney. We actually paid him a fee, so that he could explain the mortgage documents we were signing for the loan we obtained from his bank.
My wife and I were in the bank's conference room with the parties to the transaction (seller, seller's attorney, lenders closing officer, our attorney and our Realtor. Our Realtor recommended the lender and attorney. My wife was 22 years old and I was 23, we were inexperienced first time home buyers and unfortunately we also did not have any family members to give us advice, we relied on our Realtor.
I had to step out of the closing room and return home, because I forgot to bring the check for the closing. While in the conference room everyone is trying to carry on with some small talk conversation while they wait for me to return. I returned with the check 30 minutes later, and we successfully closed the transaction.
My wife and I leave the bank and head towards our new home. While in the car my wife said to me, "you are going to be shocked at what happened at the closing room while you were gone". Naturally, I asked "what happened?" The bank's closing officer and our attorney (the bank VP) were telling the people in the closing room about all the problems they are having trying to keep the "neighborhood stable". The bank is no longer lending to "Blacks and Puerto Ricans", because the community organizations are putting pressure on them, due to the changing make up of the neighborhood.
The real estate industry has come a long way since the days of blockbusting, panic peddling, and red lining. Many unscrupulous real estate agents, lenders, insurers and other professionals have been driven out of this industry thanks to HUD, RESPA, DOJ, and countless community organizations and although the membership of NAR was slow to act and needed prodding, they have been an integral force to these changes.
We all know that there is still work to be done, few of these organizations initiated the changes on their own, and they were prodded by the protests of disenfranchised citizens and the support of the majority of our citizens that want equal rights and justice for all of us. When we look at the current presidential race we see a Woman, African American and a White Male who is not necessarily from a long line of entrenched family insiders. We know that we are becoming a more diverse and open society. That is huge Change in itself.
Comments(2)