Black Churches Facing Foreclosure from Black-Run Bank
A group of Los Angeles pastors are protesting the foreclosure proceedings on a number churches, to be executed by a black-owned bank that was created to serve a once-segregated black population.
Broadway Federal Bank started in the 1940s to provide financial services to the black community. Today, according to the Los Angeles Times, “the bank had over 12% of its loans and other assets in delinquency or foreclosure, and seven repossessed churches on its books.” The bank can no longer take on additional church clients. The church pastors have promised to stand up to the bank.
Christianity Today reports that more churches have been foreclosed on in the past couple of years, showing the toll that the economic recession is having. It’s a topic that Reuters also covered earlier this year, saying that all denominations, and both black and white churches have been impacted. The foreclosures are happening as banks, the outlet says, “increasingly lose patience” with religious organizations that have defaulted on their loans and the financial institutions want to get their balance sheets in better shape. Churches told Reuters, at the time, that they just want to negotiate.
The pastors now protesting against Broadway Federal say the bank has foreclosed on 60 churches.