The FHA insured almost no loans to black homeowners in 1940

Evidence

Physical violence was not the only thing black Americans needed to be frightened of. Economic violence perpetrated by the government was cause for serious concern. In 1940, the Federal Housing Administration (FHA) insured a loan to only one black American in Greensboro, North Carolina, despite the city having roughly thirteen hundred black homeowners. The FHA was established by the National Housing Act of 1934 to insure mortgages made by private sector banks and to support new construction projects that were deemed “economically sound.” — Dorothy A. Brown, Getting to Reparations, 321