There were 1,429 press releases posted in the last 24 hours and 220,199 in the last 365 days.
NAREB President Lydia Pope
Rep. Maxine Waters, Chair of House Financial Services Committee
Disappointed that down payment assistance was dropped from the climate bill, NAREB vows to hold lawmakers accountable to advancing Black homeownership
WASHINGTON, DC, UNITED STATES, August 24, 2022 /EINPresswire.com/ — The National Association of Real Estate Brokers (NAREB) called on the White House and Congress to enact legislation that will increase Black homeownership after provisions approved by the House were excluded from the Inflation Reduction Act, which Congress passed and was signed into law by President Biden.
Rep. Maxine Waters (D-CA), chair of House Financial Services Committee, championed $150 billion of assistance for renters and potential homebuyers in House legislation, including support for first-generation homebuyers and improved fair housing enforcement. After it was eliminated, Rep. Waters summed up her disappointment in a speech on the House floor: “There is not one nickel, not one dime, not one dollar, for the development of housing in this bill.”
NAREB President Lydia Pope said organization members are disappointed that down payment assistance for first-generation homebuyers, as well as other measures, were stripped from the legislation before passage. She called for Congress and the White House to work on legislation to address lagging Black homeownership and the racial wealth gap in America.
“Certainly, we recognize that compromises were made for the bill to pass, but those cannot come at the expense of African Americans, who have experienced decades of housing discrimination, and its intergenerational impact,” said Pope. “Too many elected officials, corporations, and others talk about their equity agenda, then do far too little to make it a reality. It is time that they be held accountable.”
Pope said that Rep. Waters and Sen. Sherrod Brown (D-OH), who chairs the Senate Banking Committee, continue to press for down payment assistance. Pope called on Congress to pass legislation in a lame duck session after the midterm elections. “This is an area where we need immediate action,” she said. “Too many families are denied the American Dream of homeownership. The ugly legacy of housing discrimination must end, and a new chapter must begin that helps Blacks generate intergenerational wealth.”
Pope noted that homeownership for Blacks dropped nearly 20% since 2008. Fifty-four years after the 1968 Fair Housing Act, the homeownership gap has widened. In 1960, a 27-point gap existed with 38% of Blacks owning homes compared to 65% of Whites. The gap is now 29.6% with 44.6% of Blacks owning homes and 74.2% of Whites, the largest spread since 1890.
The House legislation had addressed one of the most difficult hurdles for Black homeowners – the down payment costs. Studies find that many Black families have the income to qualify for a mortgage but struggle to come up with the upfront costs. The House had included a $10 billion down payment grant program for first-time, first-generation homebuyers. “The nation needs that legislation to be revived,” said Pope. “Homeownership is the largest component of wealth for African Americans. To reduce the wealth gap, which spurs inequities throughout our society, there must be a significant boost in homeownership.”
Specifically, NAREB has identified four areas that need to be addressed.
Down Payment Assistance. Currently, there are options for down payment assistance available for families, but most come with conditions that can hurt their ability to get a home loan. For instance, programs tack on a second mortgage or strict wage and credit score requirements. Other proposals link down payment assistance to a tax credit, but that kind of relief does little to help a family that cannot close on house because they cannot afford the down payment. NAREB supports the federal grant program for down payment assistance that Rep. Waters has championed in the House.
Student Loan Debt. Four years after college graduation, Blacks owe an average of $25,000 more in student loan debt than their White counterparts, and Blacks leave school with an average of $52,726 in student debt. The student loan debt impacts the ability of Black families to purchase homes. Inconsistency also exists in calculating student loan debt in the mortgage underwriting process. Fannie and Freddie have acknowledged income-based payment plans that lower the monthly debt ratio calculations. But it does nothing to address the fact that the actual student loan debt continues rising. While NAREB strongly supports eliminating some student debt, a uniform underwriting standard is needed for the Federal Housing Administration, Fannie Mae, Freddie Mac, and Veterans Administration.
Loan-Level Price Adjustments (LLPAs). A comprehensive study by the Journal of Financial Economics found that risk-equivalent Latinx/Black borrowers pay significantly higher interest rates on GSE-securitized and FHA-insured loans, particularly in minority neighborhoods. The researchers estimate that these rate differences cost minority borrowers more than $450 million yearly. The LLPAs are the culprit. Even if someone qualifies for a loan, lenders can adjust the interest rate based on credit scores. Further, Private Mortgage Insurance Companies can also increase their rates. These additional costs can push potential buyers out of the market. NAREB seeks an end to LLPAs and want it established that if a family meets the qualifications for a mortgage, they get the loan without additional fees.
Fair Appraisals. NAREB wants an end to appraisal bias when Blacks are selling their homes or need a valuation on new ones. A Biden administration task force concluded that “bias in home valuations limits the ability of Black and brown families to enjoy the financial returns associated with homeownership, thereby contributing to the already sprawling racial wealth gap.” A Brookings Institution study shows that homes in Black neighborhoods appraised for 23% less than similar homes in White neighborhoods. The appraisal review process is deeply flawed and must be fixed. After appeals, less than 3% of appraisals are revised. Of the roughly 78,000 appraisers across the country, only 2% are Black.
“NAREB will be publicly calling on lawmakers and the Biden Administration to take action on these issues, particularly pressing elected officials who rely on votes from Black communities,” said Pope. “Rhetoric no longer counts for much. Our communities need action, and this organization will hold elected officials accountable to the people who elect them.”
###
(For print or broadcast interviews with NAREB President Lydia Pope contact Michael Frisby,
Mi**@fr**************.com
/202-625-4328.)
Michael K Frisby
Frisby & Associates
+1 202-625-4328
mi**@fr**************.com
You just read:
EIN Presswire’s priority is source transparency. We do not allow opaque clients, and our editors try to be careful about weeding out false and misleading content. As a user, if you see something we have missed, please do bring it to our attention. Your help is welcome. EIN Presswire, Everyone’s Internet News Presswire™, tries to define some of the boundaries that are reasonable in today’s world. Please see our Editorial Guidelines for more information.
Follow EIN Presswire
© 1995-2022 Newsmatics Inc. dba EIN Presswire
All Right Reserved.