Law Commons^™

Inclusive Economics And Home Loan Policies For Informal Workers, Kim Vu-Dinh

Faculty Scholarship

The United States has been suffering from a housing crisis that existed long before the proliferation of sub-prime loans and the Great Recession of 2008-2009. For decades, millions of gainfully employed workers have been institutionally excluded from homeownership, simply because they work in the informal economy. Because of this, the economic growth of households in this demographic has been stymied by discriminatory banking policies that heavily prioritize short-term profit maximization over borrower reliability, or loan viability. Many of those affected are historically disenfranchised people, who systematically have been excluded from the American dream of “a chicken in every pot and …