NCLR Urges Lawmakers to Amend Housing Finance Reform Bill Before it is Brought to Senate Floor

FOR IMMEDIATE RELEASE                                                    Contact:
May 15, 2014                                                                           Joseph Rendeiro
                                                                                                (202) 776-1566
                                                                                                jrendeiro@nclr.org

WASHINGTON, D.C.—Today, the U.S. Senate Committee on Banking, Housing and Urban Affairs approved an amended version of the “Housing Finance Reform and Taxpayer Protection Act” (S. 1217), a bill aimed at overhauling the nation’s housing finance system. NCLR (National Council of La Raza) appreciates the efforts of members of the committee to address a clear and present need for housing finance reform, but the legislation, as written, will not sufficiently ensure that all creditworthy borrowers have access to an affordable mortgage. We strongly urge senators to address serious concerns about access and affordability that exist for communities of color before advancing this bill.

“Our housing finance system must, above all, maintain a duty to serve all credit-worthy borrowers. Although there are components of this bill that we support, the legislation as a whole misses the mark because it fails to ensure that Latinos and other traditionally underserved communities won’t be unfairly cut off from affordable mortgage credit,” said Janet Murguía, President and CEO of NCLR. “In fact, this bill could actually make getting a mortgage tougher for middle- and low-income families, the same families who were hurt most by the predatory lending and irresponsible gambling practices of financial institutions that led to our housing crisis. We are deeply disappointed by the unwillingness of some members of the committee to adequately address the mortgage credit needs of our community.”

By 2020, minority households will account for about one-third of all American households, and Latinos alone will account for half of new homebuyers, underscoring the need for housing finance reform to work for communities of color.

“While we are disappointed with the current version of the bill, there is still time to fix the serious structural problems that exist within this legislation,” added Murguía. “To create a housing finance system that works for all Americans, our concerns about access and affordability must be dealt with before the bill moves to the Senate floor.”

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.

###