NT-6206

Slate Card & count down clock. Title: The Neighborhood is Obsolete

Show Intro graphics.

Montage of smaller city streets in Chicago and small business signs.

"Going out of LADIES business. All ladies shoes reduced" sign in store window

CU of Bill Moyers standing on a residential Chicago street - brownstones and trees in the background.

Young blond boy in jeans and plaid shirt on grassy patch of lawn holds a baseball mitt and throws a ball back and forth to someone unseen. Camera zooms out to show Moyers reporting from the sidewalk outside of a brown stone lined residential Chicago neighborhood.

Bill Moyers in dark brown suit speaks from the sidewalk of a residential Chicago street. Brownstones behind him. 1970's car park across street.

CU of bank worker sitting at a typewriter.

CU of wowan holding small blond baby wearing a pink winter coat.

Male bank worker sits down at desk to sign a check while speaking to the woman across from him. Other desks around him are occupied by workers and bank patrons.

CU of CAP pin on suit lapel

Sign on bank wall written in cursive " Not get a BIG 7 1/2% on your savings with 4-year Certificate. $1,000 minimum"

African American man in dark suit with white carnation in this lapel

CU of middle aged woman with short dark hair is interviewed about the bank relocating. "Austin" is written on her jacket.

Older gray haired woman in tweed coat with purse over her shoulder and hands in pockets walks down the front steps of her brownstone building next to Bill Moyers.

Older white woman in with grey hair in housecoat stands on the porch of her home talking to the African American man on the sidewalk in front.

Bill Moyers walks down a block in a Chicago neighborhood talking with an older woman who lives in the neighborhood. She points out the abandoned homes being lost to FHA mortgage loans.

Exterior shot of large abandoned brick hotel in Garfield Park, Chicago

Exterior shot of an old Savings and Loan Association building - now a funeral home. "Luthar Sparks Funeral Home 626-1092" 5300 West. Madison Street

CU F.H.A Mortgage Sale sign on chain link fence.

1970's cars parked along residential Chicago neighborhood. String of new brock town homes behind. East Rogers Park, Chicago

Clark Street in Rogers Park, Chicago's North Shore. Camera zooms into Rogers Park Savings bank sign

Mr C.K. Restaurant - Char-Broiled Food sign

CU man flipping burgers on indoor grill in a restaurant

Waitress in diner walks to cook at grill. Reading from a pad she tells him the customer's order

Bill Moyers sits down with locals at a diner booth to talk to them about the banking/mortgage crisis

Kids swing and play on nice playground in a Chicago neighborhood as mom looks on

CU of brick multi-story building in Chicago. Camera pans down building until it lands on the lowest level. A young blond boy peers out the window from his home inside. His mom sits next to him

CU local Chicago housewife seated next to Bill Moyers at a diner talking about mortgage crisis. 1970's houndstooth suit over red turtleneck.

long shot of row of desks inside of a savings bank.

Bill Moyers:
What about the complaints that that your father doesn't believe in the community doesn't really think it has a future and that he's simply written off Rogers Park?

Jim Langworthy 14:13
Well, I hope that was just rhetoric to grab attention because that is untrue. This institution has a substantial investment in Rogers Park. We can't live without Rogers Park. If the community goes down, we can't continue to exist that I see. He cares about Rogers park a great deal because this is the community in which we operate. I think I probably spend more time here than I do at home. But on the other hand, you cannot make any loan that in good conscience you don't think is a good loan.

Bill Moyers 14:47
What percentage of the loans you make are made right here in Rogers park,

Jim Langworthy 14:52
but we have not completely broken it all down. It would be a long job. I'd say that probably About 20% In general,

Bill Moyers 15:02
does that mean that 80% of the of the loans you make go outside of, of the area?

Jim Langworthy 15:10
The local community? So you'd say that, yes.

Bill Moyers 15:12
How much of the money that goes outside of the local community is, in fact, deposits from the local,

Jim Langworthy 15:16
I'd say probably 80% of our deposits come from an area within five miles around our office.

Bill Moyers 15:23
Well, isn't that what they call disinvestment? That is you're taking the deposits of this community, and helping to build up other communities while this community continues to decline?

Jim Langworthy 15:32
Well, hopefully it will work in reverse from another institution, you know, within three, four miles of us, I'd have to say that one of the elements of good mortgage underwriting is a spread of risk. If we were located in a northern suburb in a new community, a new suburb, we still couldn't put all of our eggs into one basket.

Bill Moyers 15:53
Doesn't redlining take place? In some parts of this city? Aren't there financial investors who simply decide this isn't where the future is? And we better get out to the suburbs?

Jim Langworthy 16:07
Well, I can't answer that. I would just guess, though, that if that's their decision, rather than just kissing off that area, they have got to put some effort into a plan for providing adequate financing for the people who want to continue to make that area their home.

John Colon 16:51
I asked to see the president of the bank was JN Langworthy. He was not there. I was told that I could see his son, who was the vice president of the savings and loan association. So his son came out. I talked to him. And he told me that they were not making home improvement loans in this area. I've had my mortgage with the savings and loan for 12 years. It's not a matter of economics. I've never I've never been late on a payment my life. I was sick to my stomach. I just couldn't believe that this man is operating a savings and loan association in this neighborhood. And that he doesn't feel that this neighborhood is worth worth being a community.
Bill Moyers 17:38
Do you feel this neighborhood is going down?
John Colon 17:40
No, sir, not at all. I've heard people say that it is a changing neighborhood. I've lived here 35 years I was born and raised in this neighborhood. I hear people say the word changing neighborhood. And that doesn't mean anything to me. I think a changing neighborhood can be good. And I think it is in this scene. Any changes? Yes. But offer the better. I see different people moving into the neighborhood and I like this. I like this I think community can be can profit from different types of people being Bill Moyers 18:12
you don't feel threatened, threatened.

John Colon 18:15
No, sir.

Bill Moyers 18:16
You don't mind your children growing up here?

John Colon 18:18
No, no, not at all.

Bill Moyers sits down with Saul Brownstein, VP of Martin and Marbry Realtors.
INTERVIEW
>Bill Moyers:
Is there any doubt in your mind that redlining exists
Saul Brownstein 18:36 no question whatsoever that it exists. They themselves will use expressions such as East Rogers Park is going down the drain and they don't wish to go down the drain weather. A good example of that is a property that we had for sale north of Howard Street. And there were 12 lending institutions who turned down a very, very qualified purchaser who wish to buy a very, very lovely three flat until finally the attorney for the purchaser said Look, don't buy it. Because if they don't want it, you shouldn't want it. And this was a very qualified purchaser who was willing to make a 50% down payment and pay the highest rate of interest is allowable by law, and they still didn't do anything about it.

Bill Moyers 19:23
If you reached out to that telephone and called a local bank or a savings institution that you know of and asked for a loan in East Rogers Park, what would be the result?

Saul Brownstein 19:32
Hysterical laughter they can justify it.

Bill Moyers 19:39
Do they have a stake in the community?

Saul Brownstein 19:39
Obviously not. Their stake in the community is only the dollars that are coming in. What stake would you say they have in the community? They might only might they might own the building that they're in but other than that they're not concerned financially with the community.

>Bill Moyers 19:55
The community dies around them.

Saul Brownstein 19:57 So they pick themselves up and move somewhere else. Just like automobile dealers do.

71st Street in South Shore, Chicago. Store signs read: "Wigs," "Delicatessen Restaurant," Price Rite," "Rite Way," "Handy Dandy Self Serve Lauderette - wash 20 cents, dry 10 cents"

Exterior shot of South Shore Bank in Chicago neighborhood

South Shore Savings Bank President Milton Davis and Chairman, Ron Grzywinski stand under bank sign

SW of a highway next to a shopping mall parking lot.

CU shoppers walk in corridor or shopping mall

worker stands on scaffolding building a brick building wall soon to be a bank (First Federal)

Two Homes are Better Than One sign

Bill Moyers:
One thing that the community groups tell me that they want is disclosure. They want to know how much of a savings and loans company's investments are being made in that particular neighborhood.

Albion Fenderson 24:16
The only deterrent, as far as we here are concerned in the Federal Home Loan Bank and as agents for the Federal Home Loan Bank Board. Is that number one, that associations are not required by law to to make this disclosure. And secondly...

Bill Moyers 24:33
Would it hurt them if they were?

John Stipp 24:34
I don't know that it would I don't know that it would I don't know that it wouldn't. The only thing that I know is that neither the Federal Home Loan Bank Board nor this bank has the legal authority to require the institutions to do it. Now, I think you probably know that we have asked them on a purely voluntary basis to give us the information.

Bill Moyers 24:57
Are they willing to make disclosure

John Stipp 24:59
they're willing Make disclosure as a group, but not on an individual Association basis. And I would not expect associations ever to voluntarily on an individual institutional basis, say we have so much deposits from this zip code area. And we've made so many loans in here.

Bill Moyers 25:19
Now, what would What's your objection to that?

John Stipp 25:21
Because then some other Association over here, that happened to have more money or more loans, and that same zip code could be held up as a great example of this one. And there would be pressures that there may be very many other reasons why this association didn't have as much of one or the other as this one had good, valid reason.

Albion Fenderson 25:40
I don't believe there's been any conscious decision in any given area to draw a line around it. And to say that we just will not even consider a loan in that area

Bill Moyers 25:50
You don't think there is something called redlining?

Albion Fenderson 25:54
There's something called redlining but it depends on your definition of redlining. If your definition is that you have made a judgment based on economic factors on the normal factors of why you make a loan or you don't make a loan, and then you make a an intelligent and sound decision on that. I would not call it redlining.

Bill Moyers 26:18
What is it that causes a neighborhood not to be premium?

John Stipp 26:23
Well, it would be the the general character credit character of the neighborhood itself. And over a period of very few years, an experienced loan officer will have a feel as to the probable ability of most people in that neighborhood to repay a loan commitment.

Bill Moyers 26:45
Isn't that redlining by another name?

John Stipp 26:48
You'll have to define the term redlining.

Albion Fenderson 26:51
I don't think these catchphrases help us any. Now we have to get to, to the factual.

Woman in long dark coat and red handkerchief over her hair walks by grocery store holding white shopping bag. "Closing Out - 1/2 Off" sign

Huge Chicago mural to represent breaking the grip of the slum landlord.

Animated PBS graphics