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In 1934 the FHA was provided from the government who then gave the agency’s power to private home lenders, and this is when racial biasness came into place through selective home loans. Lipsitz says “[the] Federal Housing Agency’s confidential surveys and appraiser’s manuals channeled almost all of the loan money toward whites and away from communities of color”(5). These surveys were conducted by the private lenders who had free reign to prove the loans to whomever they want. Because the minorities did not get a chance to receive the FHA loans that they needed, they are then forced to live in urban areas instead of suburban neighborhoods...
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