Demographically, the growth of the prosperity gospel tracks fairly closely to the pattern of foreclosure hot spots. Both spread in two particular kinds of communities—the exurban middle class and the urban poor. Many newer prosperity churches popped up around fringe suburban developments built in the 1990s and 2000s, says Walton. These are precisely the kinds of neighborhoods that have been decimated by foreclosures, according to Eric Halperin, of the Center for Responsible Lending.
Zooming out a bit, Kate Bowler found that most new prosperity-gospel churches were built along the Sun Belt, particularly in California, Florida, and Arizona—all areas that were hard-hit by the mortgage crisis. Bowler, who, like Walton, was researching a book, spent a lot of time attending the “financial empowerment” seminars that are common at prosperity churches. Advisers would pay lip service to “sound financial practices,” she recalls, but overall they would send the opposite message: posters advertising the seminars featured big houses in the background, and the parking spots closest to the church were reserved for luxury cars.
Nationally, the prosperity gospel has spread exponentially among African American and Latino congregations. This is also the other distinct pattern of foreclosures. “Hyper-segregated” urban communities were the worst off, says Halperin. Reliable data on foreclosures by race are not publicly available, but mortgages are tracked by both race and loan type, and subprime loans have tended to correspond to foreclosures. During the boom, roughly 40 percent of all loans going to Latinos nationwide were subprime loans; Latinos and African Americans were 28 percent and 37 percent more likely, respectively, to receive a higher-rate subprime loan than whites.
In June, the Supreme Court ruled that state attorneys general had the authority to sue national banks for predatory lending. Even before that ruling, at least 17 lawsuits accusing various banks of treating racial minorities unfairly were already under way. (Bank of America’s Countrywide division—one of the companies Garay worked for—had earlier agreed to pay $8.4 billion in a multistate settlement.) One theme emerging in these suits is how banks teamed up with pastors to win over new customers for subprime loans.
Beth Jacobson is a star witness for the City of Baltimore’s recent suit against Wells Fargo. Jacobson was a top loan officer in the bank’s subprime division for nine years, closing as much as $55 million worth of loans a year. Like many subprime-loan officers, Jacobson had no bank experience before working for Wells Fargo. The subprime officers were drawn from “an utterly different background” than the professional bankers, she told me. She had been running a small paralegal business; her co-workers had been car salespeople, or had worked in telemarketing. They were prized for their ability to hustle on the ground and “look you in the eye when they shook your hand,” she surmised. As a reward for good performance, the bank would sometimes send a Hummer limo to pick up Jacobson for a celebration, she said. She’d arrive at a bar and find all her co-workers drunk and her boss “doing body shots off a waitress.”
The idea of reaching out to churches took off quickly, Jacobson recalls. The branch managers figured pastors had a lot of influence with their parishioners and could give the loan officers credibility and new customers. Jacobson remembers a conference call where sales managers discussed the new strategy. The plan was to send officers to guest-speak at church-sponsored “wealth-building seminars” like the ones Bowler attended, and dazzle the participants with the possibility of a new house. They would tell pastors that for every person who took out a mortgage, $350 would be donated to the church, or to a charity of the parishioner’s choice. “They wouldn’t say, ‘Hey, Mr. Minister. We want to give your people a bunch of subprime loans,” Jacobson told me. “They would say, ‘Your congregants will be homeowners! They will be able to live the American dream!’”
Garay often tells his life story from the pulpit, as an inspiration to the many immigrants in his church, some legal, some not. He grew up an outsider—a citizen by birth, but living a marginal existence in a diverse, working-class neighborhood in Flushing, Queens. His mother left when he was 8, and he was raised mostly by two older brothers; he spent most of his time on the street. “I ate jars of peanut butter for dinner,” he says. The story of how he became a Christian begins in 1989, when he was 28 years old, and involves a large sum of money. He’d been selling drugs in Miami, then started using, and owed some dealers $30,000 that he didn’t have, and they were going to kill him. He was on his mattress one night, in despair, when a picture of Jesus up on his wall “winked at me.” Soon after, he became a born-again Christian, and he told everyone about it. The dealers, he says, then went away. He doesn’t offer much explanation; he just says, “They were after me. They were going to kill me. And then they just backed off.” He credits Jesus.
Garay tried many churches, but they all felt alien and “dead” to him. “That’s not me, sitting quietly and saying ‘Thank you, God.’” Finally he came upon a Pentecostal prosperity church, much like the one he leads now. The church was full of miracles and real emotion, which drew him in, but it also offered practical benefits. The pastor pointed out Bible passages that referred to finances in specific terms, giving him images of wealth he could almost reach out and touch: “Give, and it shall be given to you; good measure, pressed down, and shaken together, and running over”—a passage that’s now often read at Garay’s church during tithing time.
“Then it started happening. It started happening!” He enrolled in a community college and began selling roses from buckets in the backseat of his Honda (“no AC, no radio”). In no time, as he tells it, he had worked himself up to roses in plastic straws, laid neatly across the backseat of his Cadillac, with no water sloshing on the white leather. With this story, Garay hopes to convince his followers that God has a bounty for them, but that to get it they have to take the first step of faith. One analogy he likes to use is a box of gifts in heaven; if you never reach up to get it, then it won’t come down to you. It’s a curious mix of active (a step of faith) and passive (“It started happening!”).
In Garay’s testimony, his life proceeds that way: part hard work, part miracle. He applied himself, eventually got married, and had children. One day, for no reason, he quit his job as a social worker counseling addicted juvenile delinquents. “I almost hit him with a frying pan,” Hazael, his wife, jokes. But the very same day, his mother-in-law walked into the house and said the bank was looking for a bilingual loan officer. He had no experience and had never used a computer. Yet he got the job and within a year was earning six figures. How did that happen? How did it all come together so neatly, one door opening the moment another had closed? When I asked him that, he smiled and pointed up at the sky.
Garay is like a father figure to his parishioners; I met a few who had named their children after him or his wife. Parishioners told me stories about his coming with them to their court hearings, showing them how to buy a phone card or find a good school for their children or, for the more entrepreneurial, invest in a small business. Oral Roberts’s seed-faith concept is the source of much suspicion about prosperity churches; pastors, including Garay, ask their parishioners to give 10 percent of their income to the church. But to Garay, seed faith is the church’s central tenet. The tithe, he says, is tangible proof that a believer has taken the first step toward God. It is the spiritual equivalent of spending three years selling flowers door-to-door. He often tells what’s known as Jesus’ parable of the three servants, from Matthew. A lord gives three of his servants money. Two invest the money and double their profit, and a third hides his in the ground. When the master returns, he declares the third “wicked and lazy” and a “worthless slave,” and casts him into the “outer darkness.” “To receive God’s bounty, you cannot hide your head in the sand,” Garay preaches. “You have to take a leap of faith.”
I asked Garay why his parishioner Billy Gonzales, who earns barely $25,000 and has no money to fix his car, should donate 10 percent of his income. “Because it gives him a new mentality. It teaches him that money can breed more money, that you can have money in your pocket on Saturday morning even though you got paid Friday night. People who support the church week after week have a dedication. Those who just give $5 or $10 here and there, you’ll hear them have the same problems week after week.” Jackson Lears would add another explanation: tithing is like the moment the gambler lays his money down on the table—it “promises at least a fleeting opportunity to contact a realm where hope is alive,” he writes. Without it, there’s only the dull regularity of $2,000 a month and a dead car.
During the boom years, Apostle Garay, as he is known in church, was brasher than he is now. He spoke in very specific terms during church services, promising that a $100 offering would yield a $10,000 return: “This is not my promise. It is God’s promise, and he will make it happen!” he would say.
While it sounds absurd, this kind of message can have a positive influence, according to Tony Tian-Ren Lin, a researcher at the University of Virginia who has made a close study of Latino prosperity gospel congregations over the years. These churches typically take in people who had “been basically dropped into the world from pretty primitive settings”—small towns in Latin America with no electricity or running water and very little educational opportunity. In their new congregation, their pastor slowly walks them through life in the U.S., both inside and outside of church, until they become more confident. “In Mexico, nobody ever told them they could do anything,” says Lin, who was himself raised in Argentina. He finds the message at prosperity churches to be quintessentially American. “They are taught they can do absolutely anything, and it’s God’s will. They become part of the elect, the chosen. They get swept up in the manifest destiny, this idea that God has lifted Americans above everyone else.”