FOR IMMEDIATE RELEASE
Contact:
Joseph Rendeiro
(202) 776-1776
jrendeiro@nclr.org
WASHINGTON, D.C.—At a convening to discuss housing finance reform held earlier today, leading civil rights and housing groups echoed concerns raised late last month about access to and affordability of mortgage credit for communities of color. The event, which included a keynote address from Shaun Donovan, Secretary of Housing and Urban Development, highlighted the proposed housing finance reform bill from the U.S. Senate Banking Committee. Although speakers unanimously agreed that an overhaul of the housing finance market is needed, they cautioned that the current draft of the bill proposed by Sens. Tim Johnson (D–S.D.) and Mike Crapo (R–Idaho) needs a number of changes to ensure that it provides affordable mortgages to all creditworthy borrowers, including many underserved communities.
“Homeownership is the cornerstone of the American Dream, but the reality is that communities of color are being left behind in the current mortgage market. This is bad for both the future of our communities and the future of the overall economy,” said Janet Murguía, President and CEO of NCLR (National Council of La Raza). “While we’re encouraged to see members of Congress moving forward with housing finance reform in a bipartisan manner, that reform will not succeed unless it works for all American homebuyers.”
Minorities will account for 70 percent of net new households over the next 10 to 20 years and 33 percent of all households by 2020. However, they have historically been disadvantaged in the mortgage market and frequently been the victims of predatory lending practices. The proposed Senate housing finance reform bill does not sufficiently address the inequity that currently exists in the mortgage market, lacks a strong regulatory body and includes down payment requirements that will adversely impact Latinos and other underserved borrowers. It also fails to acknowledge the proven benefits of housing counseling, which research shows to produce lower rates of mortgage delinquency.
“Since the housing crisis, we have seen our communities lose their homes and wealth at astonishing rates,” added Murguía. “Lawmakers on both sides of the aisle need to know how critical access to mortgages and credit are for our communities. Given the changing demographics of the housing market, how well communities of color are served by that market should be of utmost importance to lawmakers.”
NCLR—the largest national Hispanic civil rights and advocacy organization in the United States—works to improve opportunities for Hispanic Americans. For more information on NCLR, please visit www.nclr.org or follow along on Facebook and Twitter.
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