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Running Head; Majority-Minority Relations 1
Majority-Minority Relations
Institutions Affiliation
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Students Name
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SURNAME 2
Discrimination in the Home Lending and Home Insurance
Discrimination refers to the unfair handling of different categories of people and thing in
the basis of some characteristics such as the people's race, age, sex, class or any other category to
which the person or thing is perceived to belong to rather than the individual traits. Although the
equality act is protecting the people on the issue of being discriminated against it has been noted
that in the research that the American lending’s well as the insurance industries is discriminating
against the African-American people this is illegal and against the equality act. In the lending
sector, some of the discrimination began with the National Housing Act which established the
Federal Housing Administration the discrimination was evidenced by making it difficult for the
black-Americans to access the buying of houses (Roscigno, 2007). They also made it look as if the
places where they lived were not secure to invest. The reparation case also whereby there was a
restrictive covenant signed by the homeowners that restricted them from selling to the black-
American lest they lower the value of the property this lead to the Redding of the African-
American people. The insurance companies have also used the issue of underwriting to bring their
discrimination not to resurface. They said that no loan to for individual that do not own and
Insurance. From the research, the Insurers were underwriting comparatively fewer policies for
African-Americans applicants, and the policies they did write were at higher premiums than for
similar white applicants from white areas. This is an evidence of the existence of the discrimination
in the lending sector as well as the insurance (Roscigno, 2007).
Question 2
The Theories of Economics of Discrimination
There exist some theories about the economics of discrimination, but the major there ones
include; the Gary Becker theory this theory states that the behavior of any individual human is

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Running Head; Majority-Minority Relations 1 Majority-Minority Relations Institutions Affiliation Instructor’s Name Student’s Name Course Code Date SURNAME 2 Discrimination in the Home Lending and Home Insurance Discrimination refers to the unfair handling of different categories of people and thing in the basis of some characteristics such as the people's race, age, sex, class or any other category to which the person or thing is perceived to belong to rather than the individual traits. Although the equality act is protecting the people on the issue of being discriminated against it has been noted that in the research that the American lending’s well as the insurance industries is discriminating against the African-American people this is illegal and against the equality act. In the lending sector, some of the discrimination began with the National Housing Act which established the Federal Housing Administration the discrimination was evidenced by making it difficult for the black-Americans to access the buying of houses (Roscigno, 2007). They also made it look as if the places where they lived were not secure to invest. The reparation case also whereby there was a restrictive covenant signed by the homeowners that restricted them from selling to the blackAmerican lest they lower the value of the property this lead to the Redding of the AfricanAmerican people. The insurance companies have also used the issue of underwriting to bring their discrimination not to res ...
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