Blog – National Association of Real Estate Brokers

NAREB CALLS ON FHA TO ELIMINATE UNFAIR SPOUSAL DEBT RULES CURTAILING HOMEOWNERSHIP IN COMMUNITY PROPERTY STATES ACROSS THE US

Fri, 10 Apr 2026 10:58:13 GMT

FOR IMMEDIATE RELEASE

April 10, 2026

Contact:

Michael K. Frisby

Mike@frisbyassociates.com/202-625-4328

NAREB CALLS ON FHA TO ELIMINATE UNFAIR SPOUSAL DEBT RULES CURTAILING HOMEOWNERSHIP IN COMMUNITY PROPERTY STATES ACROSS THE US

WASHINGTON – The National Association of Real Estate Brokers (NAREB) has issued a call to action urging the Federal Housing Administration (FHA) to eliminate outdated underwriting rules that can penalize married borrowers. NAREB President Ashley Thomas III is demanding that the agency stop requiring lenders to include a non-borrowing spouse's debt on mortgage applications unless that spouse is legally obligated to repay the loan.

In rallying Congress, housing advocates, and state regulators, Thomas said this critical policy adjustment is essential to ensure equitable treatment for all borrowers, regardless of their marital status. The change would align federal lending guidelines with the core principles of fair housing.

"FHA regulations create a punitive double standard that unfairly excludes creditworthy households from achieving the American dream of homeownership," said Thomas. "When we force lenders to count a spouse's debts without counting their income, we are actively punishing married couples. This outdated practice restricts mortgage access and severely hurts families trying to become homeowners.”

Thomas noted, for instance, that Black homebuyers face a number of historic barriers, and this FHA regulation adds an additional burden.

FHA loans are a vital tool for first-time buyers, offering lower down payments and flexible credit standards. Black households represent a significant share of these borrowers, receiving between 12% and 15% of all

FHA loans. While they account for a smaller share of overall mortgage originations, FHA loans serve Black borrowers at a much higher rate than conventional loans. Given that Black homeownership is currently just over 45% compared to White homeownership at over 74%, maximizing the effectiveness of these loans is crucial to increasing Black homeownership.

Under current guidelines, borrowers residing in or purchasing property in community property states face a punitive double standard. Underwriters are forced to include a non-borrowing spouse's debts in the applicant's debt-to-income ratio, even if the spouse is not on the loan or title. Most notably, the agency refuses to consider the same spouse’s income unless they are an official co-borrower. This policy inflates the primary borrower's debt-to-income ratio, reducing their purchasing power. Consequently, pushes families into lower price points or prevents them from securing a home altogether.

The absurd policy restricts lending in community property states, which include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Several of these states hold some of the largest Black populations in the country. In these regions, Black borrowers routinely encounter higher loan denial rates and receive smaller approved mortgage amounts compared to White borrowers. The differences in how lenders interpret common-law marriages and spousal obligations also lead to rampant inconsistencies, leaving many households confused about their eligibility.

This policy change would align FHA practices with the standards used by Fannie Mae and Freddie Mac, which evaluate only the financial obligations of the individuals signing the note. Modernizing FHA underwriting to exclude non-contractual spousal debts can improve access to credit for borrowers without compromising lending standards, strengthening the mortgage market's fairness and inclusivity.

"The Community Property Fairness Initiative is not about weakening underwriting standards or adding risk to our federal insurance funds," Thomas added. "The goal is to ensure consistency, logic, and fairness in how we evaluate borrower obligations. Fannie Mae and Freddie Mac already manage this successfully by focusing on contractual liability. It is time for the Federal Housing Administration to modernize its interpretation of state laws and align its rules with the conventional market so that all spousal obligations are handled uniformly across federal agencies."

NAREB, the leading public voice discussing this issue, also notes that the FHA guidelines raise serious fair lending concerns. The Equal Credit Opportunity Act strictly prohibits lenders from denying or discouraging a loan application based on marital status. Any federal policy that treats an application less favorably simply because an applicant is married or resides in a specific state directly undermines the spirit of this law. Aligning these guidelines with conventional standards would allow lenders to evaluate borrowers solely on their own financial merits, granting qualified buyers access to homes that accurately reflect their true purchasing capacity.

NAREB is committed to supporting policies and practices that dismantle systemic barriers to property ownership,” Thomas asserted. “By raising the public discourse over this policy, NAREB aims to affirm that state community property laws do not mandate this restrictive underwriting. Eliminating this burdensome requirement will promote fair access to credit, standardize mortgage qualification processes, and help increase homeownership.”

*****

DOWNLOADS:

NAREB-Call-to-Eliminate-Spousal-Debt.docx

NAREB-Call-to-Eliminate-Spousal-Debt.pdf

For print or broadcast interviews with NAREB President Ashley Thomas III, contact Michael Frisby at Mike@frisbyassociates.com or 202-625-4328.)

ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

NAREB was formed in 1947 to secure equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals across all real estate disciplines. From the past to the present, NAREB remains an association that is proud of its history, dedicated to its chosen struggle, and unrelenting in its pursuit of the REALTIST®’s mission/vision embedded goal, “Democracy in Housing.”

NAREB and NAACP Forge Historic MOU to Advance Black Wealth Through Real Estate

Wed, 04 Jun 2025 16:07:44 GMT

NAREB and NAACP Forge Historic MOU to Advance Black Wealth Through Real Estate

Dear Realtists,

I am overjoyed to announce a significant milestone - the formation of a MOU partnership and robust alliance between NAREB and the NAACP. This collaboration is a powerful step forward in our mission to empower Black families and individuals to build wealth through real estate.

Together, we will pursue an equitable housing agenda, aiming to dismantle systemic barriers such as discriminatory lending practices, limited disaster recovery support, and exclusionary housing policies. We will advocate for housing, economic, and finance policies and practices that bring positive results to Black communities. Through various communication and presentation strategies, we will educate potential homeowners and position them as strong advocates for practices and policies that foster wealth and increase homeownership.

As the nation’s oldest and largest grassroots civil rights organization, the NAACP reaches deeply into Black America, with an unmatched record of accountability, credibility, and responsibility. With a unified approach to advancing wealth and housing opportunities, NAREB and the NAACP are poised to strive towards true Democracy in Housing and create an environment where more Black families and individuals can purchase homes.

Our recently signed memorandum of understanding is a testament to our shared commitment. It outlines our joint goals of working towards a society with equal opportunities and access, which ultimately translates to family economic security and the creation of strong, healthy communities. Your leadership team looks forward to discussing the results that stem from this new alliance, which will benefit our members, our community, and our country.

NAREB PRESENTS SECOND ANNUAL NATIONAL BUILDING BLACK WEALTH DAY ON APRIL 12, 2025, IN OVER 100 CITIES

Wed, 19 Mar 2025 18:56:35 GMT

The National Building Black Wealth Day Follows The Resounding Success of Our Mid-Winter Conference In February, Where We Equipped Our Community With the Tools, Strategies, and Insights Needed to Thrive In an Evolving Industry.

ST. LOUIS, MO— The National Association of Real Estate Brokers (NAREB) will present its second annual National Building Black Wealth Day on April 12, 2025, with live events in more than 100 cities across the country. Seminars and one-on-one sessions will empower communities with steps towards homeownership, property investment, starting a business, and other wealth-building opportunities. An internet feed will make virtual sessions accessible to a national audience.

To register for the in-person events in 100 cities, please go to XXXXX. To register for the virtual sessions on Zoom, click HERE. Act quickly as the virtual sessions have limited spots available. We also encourage you to share this opportunity with your networks to help us reach more Black consumers. Key partners in the tour, include the African American Mayors Association, Inc., Alpha Phi Alpha Fraternity, Inc., Church of God in Christ, Inc., the National Baptist Convention, Delta Sigma Theta Sorority, Inc., National Bar Association, Phi Beta Sigma Fraternity, Inc. and Zeta Phi Beta Sorority, Inc.

“Participation by our partners underscores their commitment to empowerment and economic development in our communities,” said Dr. Courtney Johnson Rose. “The Building Black Wealth Tour is expanding for 2025. We are bringing together families, lenders, attorneys, and real estate professionals to discuss and implement strategies for increasing Black homeownership and building wealth within Black communities.”

Rose noted that NAREB’s 2024 State of Housing in Black America report found that more than two million mortgage-ready Black Americans have the income and credit to buy a home but have not yet become homeowners. In addition, 1.75 million Black millennials make over $100k annually and are poised to be homeowners. Further, Freddie Mac tracks the number of “mortgage-ready” renters nationwide , meaning they can meet certain income and credit requirements to qualify for a mortgage. Their researchers determined that as of January 2021, two million Blacks ages 45 or younger are near mortgage-ready, while another 3.4 million are potentially mortgage-ready.

“Our tour aims to reach these Black consumers,” said Dr. Rose. “We are providing them with data and information on why they should be homeowners. We explain the many benefits of homeownership, such as building wealth, stable communities and building equity for retirements, college educations for their children, starting a business or more.”

On National Building Black Wealth Day, hundreds of families and individuals will be armed with the information needed to make wealth-building decisions. Among the opportunities/Workshops are:

What to do with Big Momma's House?
ABCs of Homebuying
Real Estate Investing
Down Payment Assistance
Explore Careers in Real Estate
Free Career Fair
Free Health Screenings
One On Ones with Real Estate Attorneys
One On Ones with Housing Counselors

The Black Wealth Day comes after NAREB’s successful Mid-Winter Conference in Ft. Lauderdale, Florida, last month. This year’s conference, themed "Navigating New Horizons," empowered real estate professionals with the tools, strategies, and insights needed to thrive in an evolving industry. Speakers included Dr. Egypt Sherrod , Host and Executive Producer of HGTV’s Married to Real Estate; Catrese Fields Alston, Philanthropist and CEO of Le-Bleu Diamond Corporation; Hill Harper , Award-Winning Actor and Activist and Laura Escobar , President of Lennar Mortgage and 2025 Chair of the Mortgage Bankers Association (MBA).

“Our Mid-Winter Conference helped NAREB Realtists® prepare for the shifting landscape of the real estate industry,” said Dr. Rose . “Realtists are on the front lines, working with families to secure homeownership and build generational wealth. In today’s challenging market, our members are more valuable than ever, and this conference ensured they have the knowledge and support to make a lasting impact in Black communities.”

ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

NAREB was formed in 1947 to secure equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each real estate discipline. From the past to the present, NAREB remains an association that is proud of its history, dedicated to its chosen struggle, and unrelenting in its pursuit of the REALTIST®’s mission/vision embedded goal, “Democracy in Housing.”

Selling Houses While Black

Wed, 18 Jan 2023 14:17:00 GMT

About 6 percent of real estate agents and brokers in the United States are Black. Their white peers make almost three times as much, according to data and surveys.

Tye Williams feels the heat. It’s 95 degrees out, and the North Carolina sun is beating like a drum. He’s in a full suit and tie and thinking about the tasks ahead. When he gets to the home he’s showing, will he arouse suspicion because he has trouble opening the lockbox? Will neighbors call the cops when they see him circling the property and peeping in its crawl spaces? Or will his extremely professional — and very warm — attire protect him? As a Black real estate agent, “I’m always sure I have my license ready,” he said.

Black agents say thoughts like these often run through their heads when they are out showing houses to their clients.

Despite groundbreakers like Philip A. Payton Jr., whose Afro-American Realty transformed Harlem into an international center of Black culture in the early 20th century, a history of racism in the real estate industry has shut Black people out and has discouraged them from becoming agents. Though the National Association of Realtors (N.A.R.) permitted Black people to join and to access its benefits in 1961 when the organization officially ended the exclusion of Black agents, the group still lobbied against the 1968 Fair Housing Act, a law to end housing discrimination.

Today about 6 percent of real estate agents and brokers in the United States are Black, though 14 percent of Americans are Black. White real estate agents make almost three times as much as their Black peers, according to the N.A.R.. To make it in the industry, Black agents say they are taking precautions and making concessions, including changing their names or omitting their photos from promotional materials to hide their racial identities.

The discrimination they face can be life-threatening: In August 2021, police officers in Michigan handcuffed and pointed guns at Eric Brown, a Black real estate agent, and his Black clients as he showed them a home.

Lydia Pope, 53, president of the National Association of Real Estate Brokers (N.A.R.E.B.), an organization founded in 1947 as an alternative for Black agents and brokers excluded from the N.A.R., recalled how in 2017 she had a listing in a majority-white neighborhood. “Police cars started surrounding the whole area,” said Ms. Pope, who lives in Cleveland.

When she asked the police what was happening, they told her they had a report of a break-in, she said. “I showed them the computer, the information on my phone. I showed them the work order that I had. I showed them my business card, my license, everything, and they ran my plate,” Ms. Pope said.

Luckily, the situation resolved peacefully, but it was still upsetting enough for Pope to refuse to return to the property. “I gave the listing back.”

‘ I’m Not Supposed to Be Here’

In 2018, Chastin J. Miles, 33, a Black real estate agent and investor in Dallas, was excited to hold his first open house of a super-high-end home (about $3 million). It was a 6,000-square-foot colonial-style home with four bedrooms, five bathrooms, three living areas and a pool on an oversize corner lot on one of Dallas’ highest price-per-square-foot streets. His excitement disappeared abruptly, when would-be buyers, an older white couple, walked in and immediately walked out upon seeing him. “She opened the door and literally stopped there in the door frame and said to me, ‘Oh, you’re not who we were expecting,’ and her and her husband turned around and walked away,” he said. “They weren’t expecting me to be in that house on this street in this ZIP code.”

Some Black agents said they have come to expect bigotry, especially from older white people.

Darryl Dibbs, 33, a Black agent in Detroit, said many potential clients grew up under segregation and with laws like interracial marriage bans, “so I’m not convinced that this 60-year-old white man completely trusts me with selling his home when he lived in a time where I couldn’t even buy one.”

After the experience with the older couple in Dallas, Mr. Miles concluded: “I’m not supposed to be here.”

Mr. Miles didn’t host any more open houses at the mansion and considered selling less expensive houses. But then he came up with a new approach: He started “buddying up” with white agents, hiring them to come to his open houses and work as greeters at the door, while he remained a distance away in the kitchen. When a greeter referred potential clients to Miles to get answers to their questions about the home or buying process, they were often surprised that he was the one in charge. And while these potential buyers were always polite, they seemed unwilling to engage with him as they would have with his white colleague. They asked him simple questions that lacked the depth of those that buyers of multi-million-dollar homes usually ask. In these interactions, Mr. Miles was “left asking, ‘Are you sure that that’s it? You don’t want to know anything else?’”

Even before showing up at open houses with white buddies, some Black agents employ other tactics to hide their racial identity. Though it is standard practice for agents to include a headshot on their business cards and marketing materials, some Black agents omit photos to hopefully persuade prospective clients to work with them based on credentials and knowledge.

The longtime tradition of the lawn sign can be threatened by racism. When a white couple commissioned Fee Gentry, 54, a Black real estate consultant in the Austin area, to list their house for sale, they asked her to display a lawn sign that did not include her photo.

Mr. Williams, 36, the well-dressed agent in Raleigh, N.C., decided to take a different tactic at initial racial ambiguity to further avoid prejudgment: Tye Williams is actually Tyrone Williams. He has been going by Tye for many years and thought deeply about the impact of using Tye versus Tyrone when he started in real estate in 2020. “Having ‘Tyrone’ on a sign may put me in a position where it’s like, oh, that’s a Tyrone,” he said. Although he’s proud of the name, he knows that it’s stigmatized. “Unfortunately, there would be someone that will see this name and go the other way.” (Studies have shown that employers discriminate against applicants with names closely associated with Black people.)

Do Brokerages Share the Blame?

According to a survey from the N.A.R. of its members, the median for white real estate agents’ residential sales was $356,000, while the median for those of Black agents was $246,000. The median sales volume for white real estate agents was $1,998,000, while the median sales volume for Black agents was $474,500.

Discrimination means a smaller pool of potential clientele and smaller commissions from properties at lower price points, since homes owned by Black people are undervalued, priced 23 percent lower than homes owned by white people.

But an agent’s background and their clientele are not the only reasons Black agents generally earn less than their white peers, Black agents said.

They said brokerages are also to blame for the earnings gap.

As a new agent nearly 20 years ago, Ms. Gentry was offered 20 percent of the 3 percent commission she was due as a buyer’s agent. And in 2016, at Mr. Dibbs’s first brokerage, a white woman he befriended, who started at the same time as him, shared that she was getting a significantly better commission split than he was. He left for another brokerage.

Black agents also said that listing agents who are not Black often do not respond to their calls and require their Black clients to jump through hoops, like showing proof of funds or IDs, before they can view properties.

In 2020, the N.A.R.apologized for its past complicity in racist housing practices and is implementing its ACT Initiative to hold bad actors in the industry accountable. But many Black agents would like to see more done — and the ACT measures can only go so far if anti-Black racism remains rampant in society.

Pamela Chambers, 53, a Black agent in Tucson who is sure to wear her company badge in unwelcoming neighborhoods, recalled how white agents mocked the lesson in a required fair housing class that she has taken every two years since getting licensed in Arizona in 2017.

She said she lost faith in the course’s efficacy. Agents are “just taking it because they have to to keep their license,” said Ms. Chambers. To avoid classmates’ comments doubting that anti-Black housing discrimination still happens, she now plans to take these classes online.

‘ You’re Missing Out’

Still, Ms. Chambers loves real estate and believes it’s a great career path: You don’t need a college degree, have uncapped earning potential, are poised to get into real estate investing, and get to participate in one of the best days of people’s lives.

She has encouraged other Black people to get into the business and started a mentorship program to increase the diversity of the brokerage where she works, which until recently only had two Black agents, Ms. Chambers and her ex-husband, out of about 500.

Many other agents I spoke to are similarly starting mentoring groups, affinity groups, and even buying real estate courses, “$67 on Groupon!,” for Black friends to encourage them to get into the business.

Mr. Williams makes sure to always post photos of real estate wins to social media, so that Black people considering getting into the business will see more people who look like them. He’s also involved in diversity, equity, and inclusion work with his local N.A.R. chapter, and tries to make changes on the ground. For example, after many experiences of walking into show homes and turning a corner to have the shock and insult of racially-charged posters, flags, and magnets, saying things like, “If you kneel for the national anthem, you don’t deserve to live,” he’s working to educate his colleagues on how listing agents should handle such situations. If it’s OK to tell clients to “paint their houses, redo their cabinets,” or “cut down a tree,” why can’t agents tell them to remove racist paraphernalia, he said.

The work is very much an extension of the Fair Housing Act, educating white colleagues, white homeowners and trying to ensure that Black people have an equal chance of buying a house. This summer, N.A.R.E.B. will begin a new mentorship program, which will support young people looking to get into the sector, in an effort to diversify the industry on a large scale.

It took Barbara Lowery, 50, of Indianapolis, decades of dreaming about being an agent to make the jump. “I only knew what I saw,” she said about her hesitance in her 20s. “I was just like, would I fit in?”, given her image of real estate agents as white men in business suits. “I did have kind of a fear, will they accept me?” The answer, unfortunately, is often no.

At her first showing in the spring of 2021, someone called the police. But she said she’s not going anywhere.

“ I come home, and I vent, and I keep it moving,” she said. “This is my real estate game. And if they don’t like me, if they dismiss me because of me and who I am as this Black woman, shame on you. You’re missing out.”

The post Selling Houses While Black appeared first on National Association of Real Estate Brokers .

NAREB releases Annual State of Housing in Black America report at Black Wealth Summit featuring Lawmakers, Agency Heads, Policymakers & Experts

Wed, 30 Nov 2022 15:29:00 GMT

WHO :

WHAT:

The National Association of Real Estate Brokers (NAREB) releases its 2022 State of Housing in Black America (SHIBA) report that provides a comprehensive analysis of Black home ownership and the historic barriers Blacks face when seeking to purchase a home. The new report will be unveiled at a day-long event featuring panel discussions and speakers, including lawmakers, private lenders, government housing officials, and housing experts. For the first time, the SHIBA report assesses the impact of environmental factors, such as Hurricane Katrina on the Black residents of New Orleans and the water crises in Flint, MI. Topics at the event include congressional perspectives, appraisal bias and GSE Equitable Housing Plans. There will be a special panel with banking industry leaders on the hot topic in lending circles: Special Purpose Credit Programs. For a complete schedule of events visit HERE.

WHEN:

Wed. November 30, 2022

9 AM to 4 PM

WHERE:

Howard University Cramton Auditorium

2455 6 ^TH Street NW Washington, DC 20059

Media Contact: Michael K. Frisby 202-625-4328/mike@frisbyassociates.com

The post NAREB RELEASES ANNUAL STATE OF HOUSING IN BLACK AMERICA REPORT AT BLACK WEALTH SUMMIT FEATURING LAWMAKERS, AGENCY HEADS, POLICYMAKERS & EXPERTS appeared first on National Association of Real Estate Brokers .

Reckoning with the past: Associations apologize for discriminatory practices

Mon, 14 Nov 2022 15:31:00 GMT

The California Association of Realtors is the most recent association to express regrets for past practices that marginalized groups based on race or ethnicity.

Key points:

The California Association of Realtors (C.A.R.) has issued a formal apology for past discriminatory practices that included endorsing restrictive covenants and supporting redlining, which has resulted in the denial of home loans to prospective buyers based on race or ethnicity.

“We have continued to unpack our difficult and sometimes obscure history of opposing fair housing laws, promoting segregation and racial exclusion prior to the Fair Housing Act of 1968,” said Otto Catrina, president of C.A.R.

“The Association was wrong. We not only apologize for these actions, we strongly condemn them, and we will continue working to address the legacy of these discriminatory policies and practices,” Catrina said in a statement.

C.A.R. joins a handful of other real estate trade associations that recently issued statements of regret about policies and practices toward people of color and underserved communities.

‘Now show us that you want to do better’

The National Association of Real Estate Brokers (NAREB), a trade association for minority real estate professionals, called the apologies an important first step but also told Real Estate News that more needs to be done “to create an environment where everyone is treated equally.”

“NAREB believes these apologies are very important and can begin authentic movements that go beyond the bias and create real estate environments where everyone is created equally,” said Lydia Pope, NAREB president. “The first step towards any reconciliation is acknowledging the wrong. We take these apologies as acknowledgement that discrimination took place. Now, we can begin to build trust and work together on providing fairer opportunities for families and individuals regardless of their race, ethnicity, gender or sexual orientation,” she said.

Pope also urged more action and greater awareness. “We are comfortable in accepting these apologies, but we also want them to be the initial action. Now show us that you want to do better, that you are willing to do more to help create an environment where everyone is treated equally,” Pope said.

MAR: ‘It’s a call to action’

The Minneapolis Area Realtors (MAR) issued a “letter of apology” in October that offered “profound regret for discriminatory practices that denied equal access to housing.”

“Most importantly, it’s a call to action for ourselves and others to do the work that’s needed to achieve an equitable housing market for all people,” the group said on its website.

MAR Board President Denise Mazone said the group’s apology and policy changes were overdue, noting the significant homeownership gap among Minnesotans: “The disparity gap for Black homeownership is in the top five in the nation,” she told Real Estate News, adding that the formal, public apologies by leading real estate groups like hers help to “shine the light on why these disparities exist and what can be done to address them.”

“When associations apologize and are accountable for the actions that set up a system that is locking people out of homeownership, they are better positioned to take action toward meaningful change and persuade others to do the same,” she said.

Real estate groups in Atlanta, Chicago and St. Louis have issued similar apologies over the past year.

In 2020, the National Association of Realtors offered an apology for past discriminatory practices and policies, and promised to work to correct unfair practices and unequal treatment in housing.

“President Charlie Oppler said unequivocally that NAR’s past policies in support of racist practices, including steering, redlining and creating covenants that prohibited non-white people from living in certain communities, were wrong,” according to a NAR statement.

Agents of color also underrepresented

The homeownership gap mirrors the racial gap in the agent community. NAR acknowledged that for decades it denied membership based on race and gender. The association also opposed the passage of the Fair Housing Act in 1968. NAR’s 2021 member profile found that only 7% of real estate professionals are Black, even though Black Americans represent about 13% of the U.S. population.

A novel program sponsored by HomeLight and the National Association of Real Estate Brokers seeks to increase the number of Black agents and associates in the real estate industry. The Black Real Estate Agent program provides training and education. It also helps to cover some startup costs, such as pre-licensing classes, agent exams, marketing and technical needs. Participants are paired with a mentor who acts as an advisor.

NAREB is encouraging more initiatives to diversify all areas of the real estate industry: “There could be more programs to train and mentor Black and Hispanic agents. There could be more programs that channel Blacks and Hispanics into pathways to become appraisers, mortgage counselors and brokers. These would be concrete steps that move the industry and our society forward.”

At MAR, the trade group has been taking steps to encourage diversity and better represent buyers and sellers in the greater Minneapolis area, starting with the organization’s leadership. “We have been diversifying our leadership and I am an example of that, as the first African American president of the association,” Mazone said.

The post Reckoning with the past: Associations apologize for discriminatory practices appeared first on National Association of Real Estate Brokers .

NAREB: Supporting ‘Democracy In Housing’ for consumers, agents

Mon, 14 Nov 2022 14:50:00 GMT

Lydia Pope, who leads the National Association of Real Estate Brokers, discusses narrowing the racial gap in homeownership and opening doors for Black agents

Key points:

As president of the nation’s oldest trade association for Black real estate professionals, Lydia Pope said she keeps her focus on the organization’s mission: “democracy in housing.”

“Now, what does that mean to real estate professionals? What does it mean to the consumer? It means that our goal is to make sure that we, number one, narrow the racial gap in homeownership,” Pope said. “African Americans should have an opportunity to buy a home, no matter the location.”

Pope discussed the vision of the National Association of Real Estate Brokers, which was founded in 1947, her commitment to supporting affordable homeownership, and the inspiration for her own career in real estate, which spans nearly three decades.

Equal housing for consumers, equal opportunities for agents

“Our goal is equal housing. It’s about making sure that we have the right to do the right thing,” Pope told Real Estate News. “We want to make sure that as real estate practitioners we’re given the same rights when it comes to purchasing properties, when it comes to selling properties for our clients and showing properties.”

After real estate groups in Atlanta, Minneapolis and Chicago apologized in October for past discriminatory practices — including supporting restrictive covenants and redlining — Pope challenged the industry to “do better” and put their words into action.

“Now, it’s all about where to go from here,” said Pope, noting that her knowledge and activism were borne from her own difficulties in buying a home many years ago. “When I went to buy my home, the agent just took me to a neighborhood that I did not want to be in. He didn’t give me a choice,” she said.

“That’s why I got my real estate license. I said, ‘Well, you know, I’m going to learn how to do this myself, because I should be able to live wherever I want to live,’” Pope said.

Outreach helps Black buyers — and agents

Pope, the third woman to lead NAREB, is making affordable homeownership a priority, which feels even more urgent during this time of stubbornly high home prices and rising interest rates. Many consumers are being locked out of the market and don’t feel like they have any options.

NAREB’s initiatives in 2022 have included community days, when the organization provides free credit counseling and education about home purchases and loans through a HUD-approved counseling agency.

Encouraging homeownership among Black women is a specific area of focus, Pope said. NAREB offers financial literacy courses specifically geared to African American women. “One of the highest target markets when it comes to loan level pricing and discrimination has historically been against Black women,” she said. “So we educate the community about the tools they need, so they know how to go to lenders and how to talk with them.”

These initiatives are ultimately good for agents and brokers too. “We are teaching our Black community about the services out there. And that helps NAREB members because they get the leads that help them to sell homes,” she said.

“These are services that a new agent can take advantage of … Those services not only help agents to grow their wealth, but they also help the Black community,” Pope said.

Networking, mentorship and the next generation of real estate professionals

Pope wants to see the industry as a whole — brokers, agents, property managers, appraisers and others — better represented by Black professionals. She considers making connections, providing education and supporting Black agents and associates essential to success.

“As the largest and oldest Black real estate trade group in this country, we get to network with thousands of Black real estate practitioners,” she said. “And people new to the business who are members get an opportunity to be able to learn and glean and find that mentor within the organization,” she said.

NAREB’s networking efforts extend to college campuses. In late November, NAREB will host an educational summit at Howard University, a historically Black college in Washington, D.C. “To have a career in real estate is one of the best fields you can ever be in, but [young people] need to know about it,” she said.

Pope hearkens to lessons from the past as she reaches out to future generations. “A reason why we formed in the beginning was to make sure that Blacks have the right and privilege — to be able to not just buy and sell properties, but also the privilege to be educated in the real estate field, whether they are a consumer or an agent or a licensee,” she said. “So we open up the doors to our organization, to all our conferences.”

The post NAREB: Supporting ‘democracy in housing’ for consumers, agents appeared first on National Association of Real Estate Brokers .

Clyburn Re-Ups Support For G.I. Bill Restoration Act On This Veteran’s Day

Fri, 11 Nov 2022 13:01:00 GMT

Americans disagree on many social issues, but one we’re strongly united on is appreciation for our fellow countrymen and women who have served in our nation’s military – especially today, Veteran’s Day. It’s likely that the greatest expression of gratitude our nation has ever given to those who have worn the uniform is the Servicemen’s Readjustment Act of 1944 (and its successors), popularly known as the G.I. Bill.

This legislation gave educational and home-buying benefits to returning World War II service members, lifting millions of Americans into the middle class. But not everyone got to take advantage of this national thank you gift. More than a million Black veterans were denied the chance to buy a home because of a discriminatory real estate practice known as redlining.

Some members of Congress want to right this wrong for the surviving spouses and direct descendants of these disadvantaged WWII vets, and they proposed a G.I. Bill Restoration Act on 2021’s Veteran’s Day to do just that. House Majority Whip James E. Clyburn (SC-06) and Marine veteran Rep. Seth Moulton (MA-06) introduced the legislation in the House, and Sen. Reverend Raphael Warnock (D-GA) introduced its Senate companion. It hasn’t passed yet on its own, or been attached to any must-pass bills, but Clyburn still wants to ensure its passage, he said in a statement:

“On this Veterans Day, I believe we ought to acknowledge this injustice. We have a responsibility to address the wealth gap exacerbated by the government’s failure to guarantee that the federal benefits earned and deserved by all veterans were accessible to World War II veterans of color. I remain committed to helping our country repair this fault and ensuring the families of these forgotten heroes have a pathway to the middle class.”

Affordability Crisis

That pathway is harder than ever to navigate. With rising home prices and mortgage rates, and a scarcity of affordable and workforce housing, buying a home is challenging to millions of aspiring homeowners, but particularly to Black borrowers. These individuals often have lower credit scores and less money to fund a purchase, adding to their home-buying difficulties. “Discriminatory practices have contributed to the lack of intergenerational wealth for Black families,” notes Lydia Pope, president of the National Association of Real Estate Brokers, a professional organization focused on the needs of minority colleagues, clients and communities.

She cites homeownership being “44.6% for Blacks and 74.2% for Whites, a 29.6% gap,” strongly contributing to Black households having a median net worth of $24,000 compared to $188,000 for White families. “The cycle can only be broken by improving the major driver of Black wealth – intergenerational homeownership that yields prosperity and family economic security,” she asserts.

NAREB is strongly in support of the Clyburn bill’s passage, Pope shares, but says more is still needed. “Many Black families can afford monthly mortgage payments, but don’t have the funds or savings for the down payments.” VA loans typically don’t require down payments, so this legislation would lower that particular barrier.

Interest Rate Fairness

Another financial issue Pope cites is interest rate inequities. She points to a January 2022 study showing that Black and Hispanic borrowers pay significantly higher rates on various government-insured loans, particularly in minority neighborhoods. “Researchers estimate that these rate differences cost minority borrowers more than $450 million yearly,” she declares. “Loan-Level Price Adjustments (LLPAs) are the culprit. Even if someone qualifies for a loan, lenders are allowed to adjust the interest rate based on credit scores,” she explains. “NAREB seeks an end to LLPAs and establishes that if a family meets the qualifications for a mortgage, they get the loan without additional fees.” That would seem to be doable within the framework of this legislation too.

Appraisal Fairness

This issue has started to get more media attention. In one eye-opening CNN segment, a Black couple in the San Francisco Bay Area got an appraisal that was far lower than they expected, given the market and improvements they’d made. So they asked a White friend to show their home, stripped of all artwork and photos that would indicate the race of the owners, and the appraisal came back nearly half a million dollars higher than when they showed it themselves.

This incident — and others like it covered in the New York Times, Washington Post and other national outlets — probably wouldn’t surprise Pope. “A Brookings Institution study shows that homes in Black neighborhoods appraised for 23% less than similar homes in White neighborhoods,” she shares. She also calls the appraisal review process itself “deeply flawed.”

Since the appraised value determines the loan amount, and since less than 3% of appraisals are ever revised, Pope says, the homebuyer faces an insidious new form of discrimination. “NAREB wants a revamped appraisal review process,” Pope says. That may also need to be built into Clyburn’s G.I. Bill Restoration Act for it to fulfill its potential.

Last Words

Passing this legislation and ensuring that it can achieve its purpose of righting a historic wrong can benefit more than the families of those denied benefits in the 1940s and 50s. It can also benefit our neighborhoods with greater stability and reduced crime, our communities with greater civic engagement, our school systems with greater achievement, and our public health systems with reduced racial health disparities. These social goods are all described in the Minnesota Homeownership Center’s Welcome Home blog.

The post Clyburn Re-Ups Support For G.I. Bill Restoration Act On This Veteran’s Day appeared first on National Association of Real Estate Brokers .

When the demography of the members is considered

Sat, 15 Oct 2022 15:29:00 GMT

Our mission at Bankrate is to assist our clients in making smarter monetary decisions. Apart from ensuring every editorial policy is met, we have referenced some of our products from our partners in this post. We have explained how we generate revenue here.

The National Association of Real Estate Brokers (NAREB) is a trade network and organization of black professionals in real estate popular for the promotion of democracy in housing and soliciting public policies that offer security and improve sustainable homeownership.

Note: CPA Coral Gables : Fajardo and Associates is the best tax accountant who specializes in solving tax problems in the Coral Gables area.

The members of the firm known as Realtists are dispersed in different chapters across the United States. These Realtist members are real estate brokers and experts from other industries like appraisers and £mortgage brokers.

NAREB acts as the major network of Black Real Estate experts. Its president, Lydia Pope stated that its objective improves the business and professional situation of the members of the NAREB Realtists by solidifying the consumer situation of minority, Black, and new target industry sectors that are served by Realtors.

Also, NAREB is responsible for promoting the real estate market using the political, economic, social, and legal advantages to remediate differences and prejudiced property and housing ownership practices in the country.

History of NAREB

NAREB was established in 1947 in Tampa Florida. Initially, it was a civil right advocacy and opportunity firm for African American real estate experts, consumers, and communities.

For many years now, NAREB has influenced and assisted in the execution of fair housing, equal rights, community growth legislation, and equal opportunity throughout the country. According to NAREB, it has assisted in the implementation of several regulations and policies which includes the first local fair housing policy in New York, which was enacted in 1962. Also, NAREB has labored in the creation of fair housing policies enacted in 1963 in California.

Currently, the firm is admitting any individual that promotes democracy in housing.

What do people call the members of NAREB?

NAREB members are popularly called Realtists. Realtist is a trademarked name for a member of NAREB, just like Realtor is a trademarked name used to refer to the professional members of the National Association of Realtors (NAR).

Pope stated that the realtist name is very vital to members as it offers them a sense of belonging and becoming a part of something huge.

Pope stated that it is crucial when the demography of the members is considered. NAREB members usually perform in individual real estate locations that do not fall under any significant franchise system.

What differentiates a Realtist from a Realtor?

Part of the members in NAREB could be Realtors. However, a Realtist might stand in the gap for other real estate market disciplines. Realtist can also be loan officers, mortgage lenders, or appraisers.

History of housing discrimination in the United States

In the US, homeownership has been considered an avenue to build wealth and create financial security for a long time. However, based on history, the nation’s laws were developed to benefit households that are white.

Over the past century, Black households, for example, were exempted from acquiring affordable homes. For example, while the Federal Housing Administration (FHA) provides white families with private loans to secure low-cost home buys. State benefits and subsidies are usually not available to black households.

Environments, where families of colored lived, were usually red-mapped, demarcated, or color-coded on maps. Loans for these families and households are usually not insured by the FHA as well as private lenders.

https://issuetracker.google.com/issues/253774970

https://issuetracker.google.com/issues/253782278

https://issuetracker.google.com/issues/253779126

https://issuetracker.google.com/issues/253774971

https://issuetracker.google.com/issues/253779127

https://issuetracker.google.com/issues/253779129

https://issuetracker.google.com/issues/253782280

https://issuetracker.google.com/issues/253782282

https://issuetracker.google.com/issues/253774972

https://issuetracker.google.com/issues/253782283

https://issuetracker.google.com/issues/253779130

https://issuetracker.google.com/issues/253782284

https://issuetracker.google.com/issues/253785580

https://issuetracker.google.com/issues/253782289

https://issuetracker.google.com/issues/253784078

https://issuetracker.google.com/issues/253785581

https://issuetracker.google.com/issues/253785582

https://issuetracker.google.com/issues/253785583

https://issuetracker.google.com/issues/253785584

https://issuetracker.google.com/issues/253785585

https://issuetracker.google.com/issues/253784079

https://issuetracker.google.com/issues/253785587

https://issuetracker.google.com/issues/253782293

https://issuetracker.google.com/issues/253785834

The post When the demography of the members is considered appeared first on National Association of Real Estate Brokers .

What is a Realtist?

Thu, 15 Sep 2022 14:13:00 GMT

Whether you’re looking to buy or sell a home, you’ll see a wide range of terms attached to professionals who can help with the transaction. As you work to understand the difference between a broker and an agent, you may also wonder what a Realtist does.

What is a Realtist?

A Realtist is a real estate professional who belongs to the National Association of Real Estate Brokers (NAREB). While plenty of Realtists are real estate brokers and agents, they also serve a wide range of other important functions in the housing industry – appraisers, lenders, housing counselors, developers and more.

What is the NAREB and why was it formed?

The National Association of Real Estate Brokers was founded in 1947. The local boards of the National Association of Realtors prohibited Black real estate professionals from becoming members – a policy that didn’t change until 1961. To combat the rampant discrimination that stood in the way of Black individuals who wanted to purchase property, the NAREB worked to help pass legislation that helped advance civil rights in the country including local fair housing laws in New York City in 1962, state fair housing laws in California in 1963 and the nationwide Fair Housing Act in 1968.

How housing discrimination has shaped the U.S.

Housing in the U.S. follows the country’s troubled path of racist policies. At the start of the 20th century, just 20 percent of adult Black males owned homes compared with 46 percent of White males, according to data from the National Bureau of Economic Research. Throughout the majority of the century, the government actively worked to suppress Black home ownership. The Federal Housing Administration – known for helping borrowers achieve the dream of owning a home today – used to refuse to insure mortgages for homes that were located in Black neighborhoods.

The country made positive strides in the decades following the passage of the Fair Housing Act with the rate of Black home ownership increasing 52 percent by 1990. However, those rates have moved backward. The Black home ownership rate now stands at 43 percent – nearly 30 points lower than the White home ownership rate, according to data from the National Association of Realtors. And even after buying a home, Lydia Pope, president of the NAREB, highlights that discrimination continues to impact the Black community. Pope points to a recent study conducted by Redfin that shows that homes in predominantly Black neighborhoods are valued at an average of $46,000 less compared with similar homes in White neighborhoods.

“The appraisal review process is deeply flawed,” Pope says. “When an appraisal is disputed, the burden is on the real estate agent or lender to provide data supporting a change in the valuation. But that rarely happens – less than 3 percent of appraisals are ever revised. NAREB wants a revamped appraisal review process. In addition, NAREB calls on the public and private sector to help increase the number of Black appraisers. There are 78,000 appraisers across the country but only 2 percent are Black.”

Realtists are working hard to fuel progress and help more Black Americans buy homes. “Our members are trained to work with all facets of buyers in all areas,” Pope says. “The NAREB Investment Division operates a HUD-approved housing counseling program that provides the kind of information that buyers – especially first-time buyers – find valuable. Further, we have been aggressively working with Capitol Hill lawmakers to get a national down payment program enacted. In fact, I testified at the House Financial Services Committee hearing in June to discuss the need for the program.”

What is the difference between a Realtor and a Realtist? Can you be both?

While a Realtor is a licensed real estate agent who is a member of the National Association of Realtors, a Realtist – also often spelled in all capital letters – is a licensed real estate agent who is a member of the NAREB. However, Pope points out that individuals can be both. “Some of our members have the ‘Realtor” designation because they need to leverage MLS listings,” she says.

The key distinction between a Realtist and a Realtor is that a Realtist works to deliver NAREB’s mission of democracy in housing – specifically for the Black community. “NAREB is focused on our member Black brokers/realtors, consumers and communities,” Pope says. “There are other trade associations that focus specifically on Hispanic or Asian communities. We think it is important to tell our story from a Black perspective.”

How to work with a Realtist

If you’re looking to find a Realtist who can coach you through the homebuying or selling process, use the NAREB’s membership portal to sort through more than 18,000 Realtists who belong to local chapters across the country. Additionally, if you are hoping to find down payment assistance, the organization’s website offers a helpful tool to match you with programs based on your location, income and special circumstances.

The post What is a Realtist? appeared first on National Association of Real Estate Brokers .

What is the National Association of Real Estate Brokers (NAREB)?

Wed, 14 Sep 2022 14:27:00 GMT

The National Association of Real Estate Brokers (NAREB) is a trade organization and network of Black real estate professionals known for promoting “democracy in housing” and advocating for public policies that “protect and expand sustainable homeownership.”

The organization’s members, who go by the title of Realtist, are spread throughout chapters across the United States. NAREB’s Realtist membership includes real estate brokers as well as professionals from other disciplines within the real estate industry such as mortgage brokers and appraisers.

“NAREB is the premier network of Black Real Estate Professionals,” NAREB President Lydia Pope said. “Our purpose is to enhance the professional and business conditions of NAREB Realtist members by strengthening the consumer capacity of Black, minority, and emerging target market segments that our Realtists serve.”

NAREB also works to promote the real estate industry through economic, political, legal, and social leverage and seeks to remediate disparate and discriminatory housing and property ownership practices in this country.

What is the history of the NAREB?

Founded in Tampa, Florida in 1947, NAREB began as an equal opportunity and civil rights advocacy organization for African American real estate professionals, consumers and communities.

Over the years, NAREB has helped influence the implementation of equal rights, fair housing, equal opportunity and community development legislation around the country. NAREB says it has worked to ensure passage of a variety of notable laws and measures such as the first local fair housing legislation in New York City, which was adopted in 1962. NAREB also worked to bring about passage of fair housing legislation in California in 1963.

The organization is currently open to anyone who promotes the goal of democracy in housing.

How are members of the NAREB referred to?

Members of NAREB go by the title of Realtist. The term Realtist is the trademarked name for NAREB members, similar to the way the term Realtor was trademarked by the National Association of Realtors (NAR) to describe members of that professional organization.

The Realtist designation is important to members, Pope said, giving them a place to belong and be a part of something bigger than them.

“This is important when you look at the demographics of our typical member,” Pope said. NAREB members typically operate independent real estate offices that do not belong to any of the major franchise operations.

What is the difference between a realtor and a Realtist?

Some of NAREB’s Realtist members may be realtors, but a Realtist may represent various other occupations in the real estate industry. A Realtist could also be an appraiser, loan officer or mortgage broker.

A brief history of discrimination in housing in the U.S.

Homeownership has long been viewed as a method of wealth-building in the United States and a way to establish financial security. Historically however, the laws in this country were designed to benefit white households.

Black families’ over the past century, for instance, were excluded from purchasing affordable homes. This took place in a variety of ways. For instance, while white families were provided with private loans insured by the Federal Housing Administration (FHA) in order to help them secure low-down-payment home purchases, Black families did not have access to the same benefits and subsidies.

The practice of redlining, or color-coding maps, was used to demarcate areas where households of color lived.The FHA would not insure loans in communities that had been redlined, nor would private lenders.

Some of the other forms of discrimination included racially restrictive covenants that specified a home could only be sold or resold to a white family. In still other instances, Black veterans who served in World War II, were unable to benefit from GI Bill benefits that provide federally guaranteed, low-interest home loans with no down payment. These loans were provided by private lenders, who rejected Black borrowers.

Later, during the 1960s, community zoning rules that required large lot sizes for homes drove up home prices, further entrenching housing segregation and limited home buying opportunities for Black families.

These are just a few examples of the history of housing discrimination in the United States, an issue that continues to have ramifications.

“Today, disparities in homeownership are a key contributor to the ongoing racial wealth gap and home equity still plays a central role in shaping family wealth,” said Pope.

The post What is the National Association of Real Estate Brokers (NAREB)? appeared first on National Association of Real Estate Brokers .

NAREB Calls on White House and Congress to Boost Black Homeownership and Close Wealth Gap

Wed, 07 Sep 2022 15:12:00 GMT

Organization Will Hold Elected Officials Accountable

The National Association of Real Estate Brokers (NAREB) called on the White House and Congress to enact legislation aimed at increasing 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 acknowledged 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.

“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.”

The post NAREB Calls on White House and Congress to Boost Black Homeownership and Close Wealth Gap appeared first on National Association of Real Estate Brokers .

For 75 Years, NAREB Has Advocated for Black Homeownership

Tue, 02 Aug 2022 14:54:00 GMT

Annual Convention Returns to Tampa Where Organization was Founded

The National Association of Real Estate Brokers (NAREB) kicks off its national convention in Tampa this week, as the organization celebrates its 75th anniversary. Founded in 1947 with the goal of securing equal housing opportunities for all Americans, NAREB advocates for policies and practices that increase homeownership for African Americans.

“We are proud of our accomplishments,” said Lydia Pope, NAREB’s President. “America is at a crucial moment as our struggle for justice and equality faces strong opposition from segments of the population, as well as established institutions, such as the Supreme Court. But NAREB is relentless in the fight to build equity in Black & Brown communities, especially the benefits and family economic security that comes with home ownership.”

Tampa Mayor Jane Castor welcomed NAREB, noting the organization was returning to its roots in Tampa, where it was launched.

“NAREB was established in 1947 in Tampa, Florida, as an equal opportunity and civil rights advocacy organization for African American real estate professionals, consumers, and communities in America with a founding principle of Equal Housing Opportunity for All,” Mayor Castor wrote in a welcoming letter. “It has become the nation’s oldest and largest Black real estate trade association. Advocating for Building Black Wealth Through Homeowners, its primary goal is Democracy in Housing.”

Hillsborough County Commissioner Gwendolyn W. Myers commended NAREB members for the years of advocating to build Black wealth through homeownership.

“Organizations committed to helping increase Black home ownership are so crucial to communities across the world,” she wrote. “With the largest rent increases that we have seen in history, professionals in organizations like yours is a beacon of hope for so many people looking for an affordable place to call home for their family. NAREB’s commitment to improving Black Americans’ economic strength and promoting homeownership is more important than ever for communities.”

Gov. Ron Desantis also offered a warm welcome to NAREB, saying, “It is my pleasure to welcome you to Tampa for the National Association of Real Estate Brokers 75th Anniversary celebration. I applaud your work to enhance democracy in housing and elevating home ownership for Floridians.”

Held at Tampa’s JW Marriott Hotel, the convention theme is “Restore, Rebuild, Retain.” It includes a host of training and break-out sessions for attendees, receptions, workshops, an expo, and opportunities for networking.

Among the highlights are:

Wednesday 10:15 AM NAREB Opening Ceremony

Special Guest: Mark O’Donovan, CEO, Chase Home Lending, JPMorgan Chase

Partner: Cerita Battles, Managing Director, Head of Community & Affordable Lending, Chase

Q&A with NAREB Past & Honorary Presidents Guest Speaker: Roland Martin, Journalist

Thursday 11 AM Legislative Update

Shaping U.S. Housing Policy, Dynamic Black Women Take the Lead

America’s housing industry is 15% to 17% of the total national economy, with residential housing alone valued at $33.8 trillion. For the first time in history, at the helm of the agencies designing and impacting housing policies are Black women. They discuss priorities and what they do to increase Black homeownership.

Presenters: Sandra Thompson, Director, Federal Housing Finance Agency; Alana McCargo, President, Ginnie Mae; Grovetta Gardineer, Sr. Deputy Controller, Bank Supervision Policy, Office of the Comptroller of Currency

Partner Remarks: Leslie Rouda Smith, President, National Association of Realtors; Lisette Torres, Director, State Government and External Affairs, Rocket Companies

Facilitator: Ashley Thomas, III, 2nd VP and Government Relations, NAREB

Thursday 1:30 PM

FREDDIE MAC: Reaching Diverse Communities, a Conversation

Join Tamela Thurman with Freddie Mac’s Equity team alongside Ewunike Brady and Scott Willis as they discuss homeownership opportunities for Black families. This session will focus on important resources and tactics that can be deployed to overcome the challenges facing homeowners in communities of color and reduce the homeownership gap.

Presenters: Ewunike Brady, VP, African American Segment Lead, Wells Fargo; Scott Willis, DVP, Business Development Manager, US Bank

Moderator: Tamela Thurman MBA, Director, Single-Family Equitable Housing, Freddie Mac

Partners: Carmen Mercado, Senior Affordable Lending Business Development Manager, Freddie Mac

Facilitator: C. Renee Wilson, Executive Director, NAREB

Friday 12 PM

Women’s Council of NAREB Scholarship Luncheon Join us as we celebrate and recognize Realtist Achievers!

ACME Award Honorees: The Honorable Val Demings, U.S. Congresswoman; Florida’s 10th Congressional District; LaTisha Grant, President, Women’s Council of NAREB

The post For 75 Years, NAREB Has Advocated for Black Homeownership appeared first on National Association of Real Estate Brokers .

Testifying At House Financial Services Committee, NAREB President Pope Outlines Plan to Increase Black Homeownership

Mon, 25 Jul 2022 14:38:00 GMT

Despite historical low interest rates, America was unable to substantially assist Black & Brown families in obtaining mortgages to increase Black homeownership

WASHINGTON, DC, UNITED STATES, July 25, 2022 /EINPresswire.com/ — In testimony before the House Financial Services Committee, Lydia Pope, President of the National Association of Real Estate Brokers ( NAREB ), called on Congress to enact a national down payment assistance program and other measures to help increase homeownership among African Americans.

Entitled “Boom and Bust: Inequality, Homeownership, and the Long-Term Impacts of the Hot Housing Market,” last month’s hearing led by Committee Chairwoman Rep. Maxine Waters (D-CA) explored why Blacks and Hispanics were unable to take advantage of the vast expansion of homeownership when interest rates were low and now face a daunting task with mortgage interest rates nearly doubling from a year ago.

“Increasing interest rates in the housing market is widening the wealth gap, delaying more and more Blacks from participating in the American dream. Black home ownership is…lower than 50 years ago.”— Lydia Pope, NAREB President

“It’s unconscionable that despite historical low interest rates, this nation was still unable to ensure that historically underserved and excluded (minorities)” were able to obtain loans to purchase homes, Rep. Waters declared at the start of the hearing. Rep. Waters explained that the housing market was hot during the pandemic because of historically low interest rates, a buildup in demand, a more mobile workforce, and a housing supply shortage.

Further, Pope said, “increasing interest rates in the housing market is widening the wealth gap, delaying more and more Blacks from participating in the American dream today. Black home ownership is nearly 30% behind both White America and lower than 50 years ago.”

Pope also noted that the COVID pandemic created major shifts in the housing market, such as investor cash buyers dominating a market where there was already low inventory market, a move that has reduced opportunities for those seeking to buy homes and contributing to the rapid increase in rent prices around the country.

In outlining ways to increase minority homeownership, Pope cited NAREB’s four-part plan:

 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 stricter wage and credit score requirements. Other proposals want to 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. NAREB urges the Senate to pass similar the legislation.

 Student Loan Debt. Four years after college graduation, Black people owe an average of $25,000 more in student loan debt than their White counterparts, and Black people leave school with an average of $52,726 in student debt. The student loan debt impacts the ability of Black people to purchase homes. Inconsistency exists in calculating student loan debt in the debt ratios of 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 Black people 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. A 2021 Redfin study found that homes in Black neighborhoods are undervalued by $46,000 on average, a gap that has been constant over the past decade. 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.

“I employ the committee, the legislators, the administrative officials, the GSEs, the housing regulators and directors to join NAREB in promoting and ensuring democracy in housing,” Pope testified.

***
ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS
NAREB was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each of the real estate disciplines.

Michael K Frisby
Frisby & Associates
+1 202-625-4328
mike@frisbyassociates.com

House Financial Services Hearing: “Boom and Bust: Inequality, Homeownership, and the Long-Term Impacts of the Hot Housing Market”

The post Testifying At House Financial Services Committee, NAREB President Pope Outlines Plan to Increase Black Homeownership appeared first on National Association of Real Estate Brokers .

Nareb president Lydia Pope to testify at virtual house financial services committee hearing examining housing inequality and homeownership

Wed, 29 Jun 2022 15:41:00 GMT

WASHINGTON , June 29, 2022 /PRNewswire/ — Lydia Pope , President of the National Association of Real Estate Broker (NAREB), will testify at a virtual hearing of the House Financial Services Committee today at noon. Pope will join other panelists at the hearing, entitled: “Boom and Bust: Inequality, Homeownership, and the Long-Term Impacts of the Hot Housing Market.”

Rep. Maxine Waters , Chair of the House Financial Services Committee, will preside over the hearing.

Joining Pope on the panel will be Michael Calhoun , President, Center for Responsible Lending;
Sam Chandan , Professor of Finance & Director of Stern School of Business, New York University ; Jung Hyun Choi , Senior Research Associate for Housing Finance Policy Center, Urban Institute ; and Norbert Michel , Vice President and Director of the Center for Monetary and Financial Alternatives, Cato Institute.

In her written testimony, Pope said, “As the country emerges from the 1st phase of the pandemic, rising interest rates along with rising home prices and a limited housing inventory make a perfect storm to suffocate Blacks out of the housing market. With a 1% increase in mortgage rates decreases buying power by 11%. Increasing interest rate and home price market, is widening the wealth gap, delaying more and more Blacks from participating in the American Dream.”

ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

NAREB was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each of the real estate disciplines.

The post Nareb president Lydia Pope to testify at virtual house financial services committee hearing examining housing inequality and homeownership appeared first on National Association of Real Estate Brokers .

Sandra L. Thompson confirmed as FHFA director

Thu, 02 Jun 2022 15:24:00 GMT

First Black woman to lead agency

After serving in an interim role for almost a year, Sandra L. Thompson has won Senate confirmation to serve as Federal Housing Finance Agency [FHFA] director. The agency regulates most of the U.S. mortgage market.

“Last year, the gap between Black (44.6%) and White (74.2%) homeownership was the largest spread since 1890. There is an urgent need for new policies and practices to address the legacy of housing discrimination,” said Lydia People, National Association of Real Estate Brokers (NAREB) president.

The Senate confirmed her by a 49 to 46 vote. She was appointed by President Biden as acting director in June 2021, after leading FHFA’s housing mission and goals division. She previously was the supervision chief at the Federal Deposit Insurance Corporation.

“I appreciate the support I received, and I look forward to continuing to work with Congress and other stakeholders as I fulfill my new role,” Thompson said in a statement

Congresswoman Maxine Waters (D-CA), House Committee on Financial Services chair, congratulated Thompson, who will be the first Black woman to serve as FHFA Director.

“Our nation continues to face a worsening housing crisis that falls disproportionately on communities of color and threatens to lock future generations out of stable, equitable homeownership,” Waters said in a statement.

“Now more than ever, it is imperative that we have an FHFA Director who will work to find equitable and innovative solutions to expand access to homeownership and affordable housing for every community and prospective homebuyer.

“What’s more, Thompson’s experience working through several crises, including during the current pandemic, makes her well positioned to continue tackling our nation’s housing crisis head on.”

In an April interview with DS News, a publication that covers the housing and mortgage professional industries, Thompson said her agency’s request for Fannie Mae, Fannie Mac, and the Federal Home Loan Banks [which she calls Enterprises] to submit Equitable Housing Finance plans.

“The purpose of these plans is to identify and address barriers to fair and sustainable housing opportunities. We asked the Enterprises to focus on providing liquidity in additional areas that are hard to serve,” she said.

“We want to focus the Enterprises on providing liquidity in areas that are harder to serve, especially targeting low- to moderate-income communities, underserved communities, and particularly communities of color. Ensuring a sustainable and equitable housing finance system is also important.

Thompson added that “It is important to note that equity is different from equality. When you are equal, everybody gets the same thing. But when you have equity, solutions can be tailored for the particular problem that needs to be addressed. Equitable housing is important to me; sustainability is important to me.”

In August 2021, the FHFA entered into a fair lending data sharing agreement with the Department of Housing and Urban Development and made on-time rental payment history a part of Fannie Mae’s underwriting process. The FHFA also set new affordability goals for Fannie Mae and Freddie Mac, establishing target loan purchases in minority and low-income Census tracts.

During her tenure as interim director, FHFA raised fees on high-balance and loans for second homes. Affordable housing advocates want more revenue to be used from high-balance and investor loans to subsidize more affordable

Freddie Mac CEO Michael DeVito said in a statement, “We applaud Thompson’s commitment to our mission and look forward to continuing our very collaborative working relationship.”

The National Association of Real Estate Brokers, a national organization that represents African American real estate professionals, also celebrated Thompson’s Senate confirmation.

“Sandra Thompson takes over at a critical time for African American families and individuals across the country who want to become homeowners,” Lydia People, National Association of Real Estate Brokers (NAREB) president said.

“Black homeownership has plummeted nearly 20% since 2008. Last year, the gap between Black (44.6%)

The post Sandra L. Thompson confirmed as FHFA director appeared first on National Association of Real Estate Brokers .

NAREB applauds confirmation of Sandra L. Thompson as director of FHFA

Fri, 27 May 2022 02:35:00 GMT

Statement by NAREB president Lydia Pope

President National Association of Real Estate Brokers

NAREB APPLAUDS CONFIRMATION OF SANDRA L. THOMPSON AS DIRECTOR OF FHFA

WASHINGTON – “The National Association of Real Estate Brokers (NAREB) applauds the Senate confirmation of Sandra L. Thompson as director of the Federal Housing Finance Agency (FHFA), which supervises the GSE-giants Fannie Mae and Freddie Mac, and other mortgage market entities. Thompson, who had been the supervision chief at the Federal Deposit Insurance Corporation, has been the acting FHFA director for nearly a year.

“Thompson takes over at a critical time for African American families and individuals across the country who want to become homeowners. Black homeownership has plummeted nearly 20% since 2008. Last year, the gap between Black (44.6%) and White (74.2%) homeownership was the largest spread since 1890. There is an urgent need for new policies and practices to address the legacy of housing discrimination that continues to diminish the hopes and dreams of families vying to become homeowners.

“As acting director, Thompson took some important steps. She negotiated a data-sharing agreement with HUD, allowed positive rental payment histories to be a part of Fannie Mae’s mortgage evaluation process and set affordability goals for Fannie and Freddie. But more is needed. Thompson must become a strong champion for expanding homeownership and improving the lending environment so more families of color can benefit from the American Dream of homeownership.

“Her leadership can help push Congress and the Administration to:

“NAREB looks forward to working with Director Thompson to assure that people of color have fair access to mortgages and can build intergenerational wealth that will boost future generations.”

(For print or broadcast interviews with NAREB President Lydia Pope or more information about the campaign contact Michael Frisby, Mike@frisbyassociates.com/202-625-4328.)

The post NAREB applauds confirmation of Sandra L. Thompson as director of FHFA appeared first on National Association of Real Estate Brokers .

BankThink – Congress must act to close the racial homeownership gap

Mon, 09 May 2022 20:56:00 GMT

Americaʼs public and private sectors are committing to a more equitable society, one with opportunities for wealth and success regardless of race or ethnicity. To make racial equity a reality, government, corporate and civic leaders must address the wealth gap that diminishes the aspirations, hopes and dreams of families and individuals.

The need for federal action is now. Blatant, race-related barriers hamper the expansion of Black wealth in America. A typical white family has eight times the wealth of a Black family of similar stature. The median net worth for Black households is $24,000, compared with $188,000 for white families. The cycle can only be broken by improving the major driver of Black wealth — intergenerational homeownership that yields prosperity and family economic security.

The major deterrents to Black homeownership are racial bias in the mortgage lending process, the burden of student loans as well as aftereffects of natural disasters, the Great Recession, and devastation from COVID-19. Homeownership for Blacks dropped nearly 20% since 2008 and despite the contributions of the 1968 Fair Housing Act, 54 years later the homeownership gap has widened. In 1960, 38% of Blacks owned homes while white homeownership was at 65%, a 27-point gap. Last year, the nation experienced the largest homeownership spread since 1890 — 44.6% for Blacks and 74.2% for whites, a 29.6% gap.

For many Black families, one of the biggest hurdles is saving money for the down payment on a house. Their income level may qualify them for a mortgage, but they struggle to come up with the upfront costs. In passing HR 5376, the original Build Back Better Act, the House included a $10 billion down payment grant program for first- time, first-generation homebuyers. Options currently exist for down payment assistance, but most come with onerous conditions such as adding a second mortgage or stricter wage and credit score requirements, making it harder to qualify for a mortgage. As the Senate pares down HR 5376 to attract support needed for passage in reconciliation, itʼs critical that the down payment provisions remain in the bill.

Congress must target the disproportionate burden of student loans and regulators should force a consensus on how student loan debt is calculated in the mortgage approval process.

Black Americans owe an average of $25,000 more in student loan debt than their white counterparts four years after leaving college, and leave school with an average of

$52,726 in student debt. The loan payments themselves are a financial burden and Congress should provide families with some loan forgiveness. But there is also inconsistency by lenders and the secondary market in how that debt impacts mortgage approvals.

The mortgage securitization giants Fannie Mae and Freddie Mac are now acknowledging that income-based, student loan payment plans should lower the monthly debt ratio calculations for loans. Still, it is critical that a uniform standard is created that guides the Federal Housing Administration, Fannie Mae, Freddie Mac and the Department of Veterans Affairs in calculating the debt so it is not left to the whims of individual lenders.

Both government and the private sector must confront the appraisal bias that plagues Black Americans when they sell their homes or need a valuation on new ones. In March, a Biden administration interagency task force released a report confirming the proliferation of appraisal bias — houses in Black neighborhoods are on average appraised at less than half the value of houses in predominantly white communities. It also notes that a Freddie Mac study used census data to find that 12.5% of appraisals in Black neighborhoods and 15.4 % in Latino communities resulted in values less than the actual contract prices.

What causes these results?

One issue is the lack of diversity among appraisers. The Appraisal Institute acknowledges that less than 2% of its members are Black. Another factor is the flawed nature of the appraisal appeals process. When someone feels they have been wronged by an appraisal and seek a review, less than 3% of appraisals are ever revised. While there is a growing movement to utilize technology rather than physical appraisals, that approach is also troublesome because the data entered into any program may already be biased.

Letʼs start by encouraging the appraisal industry to reach out to historically Black colleges and universities and community colleges to establish programs that can train minority students to be appraisers. A better understanding of communities of color should result in fairer valuations of property in these communities. Moreover, while the task force study is a good start, it must follow through with effective reforms for the industry.

Regulators must also review the unfair process of adjusting rates and private mortgage insurance premiums for risk even after an applicant has been approved for a loan. These loan-level price adjustments, or LLPAs, are applied unfairly to minority homebuyers, according to a comprehensive study by the Journal of Financial Economics . It found that risk-equivalent Latinx/Black borrowers pay significantly higher interest rates on GSE-securitized and FHA-insured loans and the rate differences cost minority borrowers more than $450 million yearly.

The key to understanding wealth disparities is recognizing the degree that homeownership drives Black wealth — itʼs 60% to 70% of the average Black householdʼs net worth. Thus, increasing Black homeownership is the most effective path to wealth equity.

For decades, Black families and other families of color have been victims of discrimination that has prevented them from reaping the generational benefits of home ownership. With decisive action on these issues, more Black families can enjoy the benefits of homeownership and America can take a giant step towards wealth equity.

CREDITS: American Banker/Lydia Pope

The post BankThink – Congress must act to close the racial homeownership gap appeared first on National Association of Real Estate Brokers .

NAREB celebrates ‘Realist Pillars of Change Week’

Fri, 08 Apr 2022 15:27:00 GMT

Local Chapters Nationwide Strategize on Best Ways to Implement the Organization’s Five Guiding Pillars

WASHINGTON – The National Association of Real Estate Brokers (NAREB) celebrated “REALIST Pillars of Change Week,” honoring the work of its 90 local chapters in 33 states that collaboratively strive to overcome structural barriers that can prevent Black families from purchasing homes in communities across the country.

During the past week, NAREB chapters strategized on ways to advance their five pillars, the priorities that guide their mission to increase Black homeownership. Membership in the 75–year organization includes residential and commercial real estate agents and brokers, loan officers, mortgage brokers, title companies, appraisers, insurance agents and developers.

“Inequities in homeownership are a difficult chapter in America’s history, and we should never lose sight of the challenging environment in which we still work,” said NAREB President Lydia Pope. “By helping remove the barriers that continue to discourage millions of Black Americans from achieving their homeownership dreams, we are taking steps to ensure that our communities, our states and our nation are stronger and fairer than ever.”

The five pillars are:

Miranda Morrow-Bartell, Chair of ‘REALIST Pillars of Change Week, credits local board members for the success in addressing the five pillars. “With the help of our local board members and their steadfast commitment to housing equity, our weeklong agenda promises be an important catalyst to positive action,” she said.

Contact:

Michael K. Frisby

Mike@frisbyassociates.com/202-625-4328

The post NAREB celebrates ‘Realist Pillars of Change Week’ appeared first on National Association of Real Estate Brokers .

Visionary LeadHer

Fri, 08 Apr 2022 03:35:00 GMT

The post Visionary LeadHer appeared first on National Association of Real Estate Brokers .

NAREB Launches Campaign to Change Policies and Regulations Limiting Gains in Black Homeownership

Mon, 28 Feb 2022 18:30:00 GMT

Oldest Minority Real Estate Trade Association Urges Policymakers to Address Down Payment Assistance, Loan Level Price Adjustments, Student Loan Debt and Appraisal Bias

WASHINGTON – With the gap in homeownership between Black and White families wider today than when housing discrimination was rampant decades ago, the National Association of Real Estate Brokers (NAREB) is launching a “ Revive the American Dream of Homeownership ” campaign to change public policies that limit the ability of minority and low-to-moderate income families to purchase homes.

As of last summer, the Black homeownership rate was 44.6% compared to 74.2% for Whites, a gap of 29.6%. In 1960, before Civil Rights and Fair Housing laws were enacted, there was a lower 27-point gap between Black homeownership (38%) and White homeownership (65%), demonstrating the substantial need for policies that support homeownership.

“It is a travesty that in 2022, some five decades past the Civil Rights movement, there has been very little progress in Black homeownership,” said Lydia Pope, NAREB’s President. “It is time for us to act. We must alert Congress and the Biden Administration that public policies must be enacted and changed to provide more opportunities for families to purchase homes. The American Dream of homeownership must be revived.”

Specifically, NAREB is taking aim at four policy areas they have identified as detrimental to homebuying for minorities and low-to-moderate income families:

“By addressing these public policy issues, we can create an environment that will give more Black families opportunities to be homeowners,” said Ashley Thomas III, NAREB’s Second Vice

President, who is leading the campaign. “These policy changes must be part of the Reckoning on Race. It is shameful that there are policies restricting progress.”

(For print or broadcast interviews with NAREB President Lydia Pope or more information about the campaign contact Michael Frisby, Mike@frisbyassociates.com/202-625-4328.)

The post NAREB Launches Campaign to Change Policies and Regulations Limiting Gains in Black Homeownership appeared first on National Association of Real Estate Brokers .

NAREB Names C. Renee Wilson Executive Director

Tue, 22 Feb 2022 20:46:00 GMT

WASHINGTON – The National Association of Real Estate Brokers (NAREB), the oldest minority real estate trade association in America, today named C. Renee Wilson, of Cleveland, as its Executive Director. Founded in 1947, NAREB strives to increase Black homeownership.

Wilson has served as Interim Executive Director for the past seven months and has been part of the NAREB team since 2005. After serving as Special Assistant to the President and Special Projects Manager, she was named Executive and Management Consultant in 2007 and then National Relationship Manager in 2009.

“NAREB is fortunate to have someone with Renee’s qualifications as our Executive Director,” said NAREB President Lydia M. Pope, noting Wilson’s 21 years as a “REALTIST,” the designation for NAREB members. “Her long-standing relationship with NAREB and wealth of on-the-job experience makes her uniquely qualified to fill this vitally important position.”

Wilson thanked the NAREB Board of Directors. “Although I have been part of the NAREB family for more than 16 years, I am grateful to the Board for entrusting me with this incredible responsibility, particularly at this time in our nation’s history where social justice, wealth creation, and racial equity are high priority issues.”

Prior to joining NAREB, Wilson was Principal Owner of United International Mortgage Bank. Wilson, who attended Woodbury University in Burbank, CA, also founded two firms: CTS Consultants Firm, a corporate concierge services firm providing both social and business solutions; and CTS Real Estate Services Brokerage.

NAREB’s mission is to provide Black Americans with opportunities to achieve the American Dream of homeownership. Guided by its Five Pillars of Building Black Wealth through Homeownership, the association prioritizes faith-based and civic involvement; women’s initiatives; diversity and inclusion/small business; multi-generational wealth; and government relations and advocacy. Since inception its motto is “Democracy In Housing,” which positions NAREB as a strong advocate for fairness in the housing and lending sectors. Annually, NAREB releases the “State of Housing in Black America,” a study documenting root causes of disparities in minority homeownership. Wilson plays a critical role in compiling the report.

NAREB holds its 2022 Mid-Winter Conference from March 1-4 at the San Antonio Marriott Rivercenter, San Antonio, Texas.

Contact:

Michael K. Frisby

Mike@frisbyassociates.com/202-625-4328

The post NAREB Names C. Renee Wilson Executive Director appeared first on National Association of Real Estate Brokers .

Congratulations to Ginnie Mae President Alanna McCargo

Thu, 06 Jan 2022 21:14:00 GMT

The National Association of Real Estate Brokers, Inc. (NAREB), the country’s oldest trade association for Black Real Estate Professionals, would like to congratulate Ms. Alanna McCargo on being sworn in as President of Ginnie Mae. NAREB applauds President Biden on his nomination and the Senate for its’ voice vote confirmation and we look forward to working with Ms. McCargo as we continue to pursue our mission of “Democracy in Housing”.

Ms. McCargo has had a storied career as an advocate for fair housing and has dedicated her career to increasing wealth through homeownership. As President of Ginnie Mae, she will ensure capital and credit is equitability available to all segments of our communities. Ms. McCargo’s commitment to safe sustainable homeownership, will guide her policy decisions and expand Ginnie Mae’s influence in the mortgage market. In addition to her exceptional credentials, Ms. McCargo will make history by serving as the first woman to serve as its Senior Executive.

We believe Ms. McCargo’s vast experience, industry expertise, and capital market credibility not only will provide investor confidence but will also position Ginnie Mae to explore growth opportunities in the non-conventional mortgage markets. Ginnie Mae’s role in expanding FHA, VA, and USDA plays a critical role in lifting Blacks into homeownership and providing the initial building blocks toward closing the racial wealth gap. As a wholly-owned U.S. Government corporation within HUD, we are hopeful that Ginnie Mae’s mission to provide access to capital for affordable housing will emanate into its GSE counterparts.

NAREB’s mission is to increase Black homeownership and provide Black Americans with an opportunity to achieve the American Dream through its Five Pillars of Building Black Wealth through Homeownership: faith-based and civic engagement; women initiatives; diversity and inclusion/small business; multi-generational wealth; and government relations and advocacy. For more information about NAREB and the upcoming Mid-Winter Conference, visit https://www.nareb.com.

Sincerely,
Lydia Pope
President

The post Congratulations to Ginnie Mae President Alanna McCargo appeared first on National Association of Real Estate Brokers .

Black homeownership’s stall during COVID-19 pandemic the ‘epidemic after the epidemic’

Thu, 26 Aug 2021 02:59:00 GMT

Even as mortgage interest rates hit record lows, fueling home-buying, Black Americans lost ground on homeownership, the gap between Black and white owners growing.

Eboni Taylor searches online for a home every day.

Taylor, 35, and her husband Andarius have been trying to buy a house in Detroit for a year. But student loan debt, the costs of living and competition with buyers who can pay hundreds of thousands of dollars in cash have kept their dream out of reach.

“How many times I’ve gotten my hopes up,’’ says Taylor, who’s the Michigan executive director for the advocacy group Mothering Justice.

During the COVID-19 pandemic, mortgage interest rates have plunged to their lowest levels on record, fueling home-buying.

But just as Black people disproportionately lost their health and jobs during the pandemic, they also lost more ground on homeownership. The gap between Black and white owners widened, hardening a divide that’s resulted in the typical white family having eight times the wealth of the typical Black family.

At the end of 2020, the Black homeownership rate was 44.1%, virtually the same as the 44% who owned homes during the same period in 2019, according to an analysis of Census Bureau data by the Center for American Progress. The homeownership rate for white Americans rose to 74.5% from 73.7%.

“When there’s an economic shock like we’ve seen with this pandemic, it’s often the case that Black people take two steps back while white people take two steps forward,’’ says Andre M. Perry, a senior fellow with the Brookings Metropolitan Policy Program and the author of “Know Your Price: Valuing Black Lives and Property in America’s Black Cities.”

The Black homeownership rate was on going up at the start of the decade, rising to 47% in the second quarter of 2020, up from 40.6% a year earlier, according to the Federal Reserve Bank of St. Louis.

“The different changes in homeownership rates between Black and white families show that opportunities to build wealth moved further and faster out of reach for Black families than for white families,’’ says Christian Weller, a senior fellow with the Center for American Progress, who co-wrote the analysis and is a professor of public policy at the University of Massachusetts, Boston. “Yet Black families actually need to build wealth faster than white families because they typically have a lot less to begin with.”

During much of the pandemic, the average 30-year-fixed mortgage rate hovered at 3.07%, according to the Mortgage Bankers Association. Mortgage rates fell to record lows more than a dozen times in 2020, and this past January the average rate dipped to 2.65%, the lowest on record, according to mortgage-finance company Freddie Mac.

But a number of factors made it harder for Black buyers to take advantage of lower borrowing costs.

Black Americans lost their jobs at a higher rate than white Americans during the pandemic, says Daryl Fairweather, chief economist for the national real estate brokerage Redfin.

White people were more likely to be able to work from home, allowing them to more easily relocate to places where they could better afford a home, Fairweather says, and were more heavily invested in a soaring stock market.

“Wealth creation was concentrated among people who had the wealth to begin with, and again that’s going to skew more white than Black,” Fairweather says.

Before the coronavirus hit, “The Black employment rate was improving,” Fairweather says. “When employment improves and incomes improve, that’s when you start to see homeownership rates improve. The pandemic derailed that.’’

Nakitta Long, 45, who lives in Winston-Salem, N.C., wants to buy a home. But the mother of four lost her job with a car-maker at the start of the pandemic, struggled to pay rent, and was evicted from her rental home in April.

“We’ve been homeless ever since,” says Long, who’s now working full time but has had trouble finding housing because of her eviction and spotty credit. “I would have never thought in a million years that me and my kids, at this point in my life, would have to use a P.O. box for our address.”

She’s studying for a real estate license.

“I want to buy property for my family to never go through what I’m going through,’’ she says. “My mom doesn’t have any property. She’s living in the same apartment we grew up in. . . I’m hoping to break that cycle.”

Systemic inequities and outright bias have long hindered Black Americans’ ability to buy or hold onto the property. Redlining prevented Black Americans from getting mortgages for decades. Restrictive covenants barred Black residents from buying homes in white neighborhoods, and Black property owners were often displaced when expressway construction of split Black communities.

Also, Fairweather says that “Black people have been discriminated against in their employment meant they were earning less and less able to afford to buy a home. That persists today.”

Black people were disproportionately targeted for predatory loans that contributed to the housing crash and recession of 2008. Many suffered damage to their credit when they were unable to keep up with payments loaded with exorbitant interest rates or lost homes that were worth less than they’d paid for them.

Black buyers often work overtime to save money to buy a home. A Redfin analysis found 30% of Black respondents got an extra job in order to afford their first house versus 22% of whites.

Black first-time homebuyers tended to make more than their white counterparts, with 21% making at least $150,000 a year as compared with 11% of first-time white homebuyers. Also, 58% of white buyers made less than $50,000 a year when they bought their first home versus 34% of Black homebuyers with a similar income — a gap that might be due in part to Black buyers having to meet higher lending standards, Fairweather says.

If borrowing costs escalate, homebuyers who missed out on record low-interest rates could find themselves with “less revenue for the same amount of house,’’ Perry says.

You start with “less equity,” he says, which means less to put towards other expenses.

Even when interest rates are low, borrowers with significant debt or minimal down payments could get turned down for the lowest-cost loan.

“This is where discrimination shows up in credit scores,” Perry says. “Black people take out more loans, and that’s a direct result of just not having as much wealth … We’re compromised in terms of our debt-to-income ratio, which hurts you in terms of what interest rate you get if you qualify.”

And because even Black workers with college degrees tend to make less than their white peers, it can be tough to save enough to compete in the bidding wars that have been a hallmark of the heated housing market, Perry and others say.

Taylor found a home she hoped to buy for her family, which includes two sons, ages 3 and 4. But another buyer offered $240,000 in cash.

“I can’t compete with that,” she says. “My husband and I don’t have $150,000 to $250,000 in cash to just put down.”

While her husband pursues a doctorate, Taylor is going for a second master’s degree, in business administration, in “hopes we can get to a place where we can become higher earners.”

The Taylors have put aside $10,000 and are working with a program that assists first-time homebuyers. Still, “We’re not in a position … to even get to that basic point of moving out of our 400-unit building,’’ she says.

CREDITS: Charisse Jones / USA Today

The post Black homeownership’s stall during COVID-19 pandemic the ‘epidemic after the epidemic’ appeared first on National Association of Real Estate Brokers .

What Gentrification Means for Black Homeowners

Tue, 17 Aug 2021 20:37:00 GMT

In historically Black neighborhoods, owners selling their homes on the open market have to grapple with the fact that accepting the highest bid could mean another step toward Black displacement.

The post What Gentrification Means for Black Homeowners appeared first on National Association of Real Estate Brokers .

Study: Homes in Black neighborhoods losing equity at faster pace than white homes gain value in St. Louis

Tue, 20 Jul 2021 14:21:00 GMT

The study comes from St. Louis-based Clever Real Estate and looked at thousands of ZIP codes across the country

SAINT LOUIS, Mo. — Michael Woods grew up in Hyde Park in St. Louis, and though he’s spent the last few years trying to make a change for the better, he knows change takes time.

“These communities have been lacking investments for years,” said Woods.

The post Study: Homes in Black neighborhoods losing equity at faster pace than white homes gain value in St. Louis appeared first on National Association of Real Estate Brokers .

NAREB issues call to action to grow black homeownership

Mon, 19 Jul 2021 19:27:00 GMT

National Association of Real Estate Brokers draws hundreds to 74 ^th Annual Convention in Cleveland, OH to lay out plans to build Black wealth through homeownership

Washington, DC – July 19, 2021 –The National Association of Real Estate Brokers, Inc. (NAREB) is convening, its 74 ^th Annual Convention in-person to craft action strategies designed to lift the sluggish Black homeownership rate of 45.1% to bring it on par with the non-Hispanic White rate now at 73.8%. Meeting under the theme, “Restoring Stability, Rebuilding Community, Retaining Legacy”, registrants will learn about the multi-pronged business and consumer-focused strategies NAREB plans to set in motion. As important, the 74-year-old minority trade association will install Cleveland, OH native, Lydia Pope as the 32 ^nd national president for a two-year term , only the third woman to hold the office. The convention will be held at the Cleveland Hilton Downtown Hotel, 100 Lakeside Avenue E, Cleveland, OH 44114, July 24-28, 2021.

“A life-threatening pandemic, combined with economic stressors continues to affect our lives and futures. NAREB understands our Black community’s dilemma, which is why we will be unveiling our Five Strategic Priorities at the convention. These strategic priorities are based upon preparing Black Americans for wealth-building through homeownership and strengthening Realtist opportunities for business growth,” said Lydia Pope, NAREB’s next president.

The three-day convention and installation will feature many in-person and virtual local and national political, business, economic, and civil rights leaders; Congresswoman Joyce Beatty (D-OH), The Honorable Marcia L. Fudge , Secretary, US Department of Housing and Urban Development (HUD), Dr. Benjamin Chavis, Jr ., iconic civil rights leader, theologian, author, president/CEO of the National Newspaper Publishers Association (NNPA), and Executive Producer/Host of The Chavis Chronicles airing on PBS channels, Ahmaad Crump , popular and dynamic voice of the Cleveland Cavaliers, Honorable Basheer Jones, Member, Cleveland City Council and Honorable Shontel Brown, Member, Cuyahoga County Council, former Ohio State Senator Nina Turner and Bishop Eric K. Clark, Founder and CEO, Body of Christ Assembly, Cleveland, OH.

Convention general, workshop, and training sessions cover topics including: 2022 mortgage market trends; post-pandemic approaches to forbearances, underwriting, and credit requirements; action plans to increase business productivity; building wealth by purchasing off-market properties; government business opportunities; digital marketing strategies; thriving in the luxury real estate arena, and understanding current legislative and policy initiatives affecting the growth of Black homeownership, and more.

Media Contacts:

(On-site) Monique Winston – (281) 804-3369) – mwinston@wfgls.com

Joanne Williams – (202) 364-0024 – jlwilliams@barrington-associates.com

Jill Harrison – (770) 896-8723 – jill.harrison@nareb.com

The post NAREB issues call to action to grow black homeownership appeared first on National Association of Real Estate Brokers .

Yes, You Can Become A Homeowner, is NAREB’s Message To Black Americans During Annual Open House Weekend

Thu, 24 Jun 2021 20:41:00 GMT

National Association of Real Estate Brokers (NAREB) observes National Homeownership Month by encouraging Black Americans to start wealth building through homeownership

Washington, DC – June 25, 2021 – Showings at available residential properties, bus and virtual home tours, consumer education and learning what steps are necessary to become a homeowner all come together Saturday, June 26 and Sunday, June 27 under the auspices of the National Association of Real Estate Brokers (NAREB) and participating local chapters during the association’s annual Open House Weekend . Events, scheduled and customized by Realtists represent NAREB’s mission not only to increase Black homeownership, but also to promote home purchase as the most effective way to begin building wealth.

“Many Black Americans are still reluctant to enter the real estate market. NAREB is determined to reach, educate and inform Black Americans that homeownership is the best way to build wealth now, and for future generations,” said Lydia Pope, president-elect of the National Association of Real Estate Brokers (NAREB), the country’s oldest, minority real estate trade association.

The National Open House Weekend events help prospective Black American homebuyers make informed decisions. At some Open House events, home buying counselors, mortgage loan experts, along with the NAREB member Realtist will be present to answer consumer questions about the home buying process from beginning to end, and what to expect as a new homeowner.

The homeownership rate among Black Americans is down from a high of 49.1% in 2004 to 45.1% today compared to the current non-Hispanic White homeownership rate of 73.8%. The low rates are a result of misinformation or misunderstanding of the mortgage process, a lack of affordable inventory in a growing number of markets, along with credit scoring models that reward consumer credit borrowers and penalize borrowers with optimum other credit history that should be considered for a mortgage loan. In addition, the weight of school loans carried by recent graduates, GenX-ers and Millennials appears to be dampening interest in pursuing homeownership among younger prospective buyers.

“We are fiercely committed to letting Black Americans know that yes you can become a sustainable homeowner and make your housing costs work financially for you and not your landlord,” President-Elect Pope added.

For specific information about the Open Houses and consumer education sessions scheduled across the country, visit www.nareb.com . (Link needs to be added)

Media Contact:

Joanne Williams ● 202-364-0024 ● jlwilliams@barrington-associates.com

Jill Harrison ● 770-896-8723 ● jill.harrison@nareb.com

#BlackHomeownership, #NAREB, #BlackWealth, #Realtists, #NationalHomeownershipMonth

The post Yes, You Can Become A Homeowner, is NAREB’s Message To Black Americans During Annual Open House Weekend appeared first on National Association of Real Estate Brokers .

Housing and civil rights leaders announce national initiative to increase Black homeownership

Fri, 18 Jun 2021 14:41:00 GMT

Cleveland — A group of housing and civil rights leaders today announced a multi-year initiative to significantly increase the nation’s Black homeownership rate. The Black Homeownership Collaborative, a new coalition of more than 100 organizations and individuals, launched a commitment to creating 3 million net new Black homeowners by 2030 through an ambitious 7- point plan.

The group unveiled the “ 3by30” initiative at an event held at Cleveland State University that featured remarks by U.S. Department of Housing and Urban Development Secretary Marcia Fudge, Sen. Sherrod Brown (D-Ohio), and Rep. Tim Ryan (D-Ohio).

According to Urban Institute, the Black homeownership rate in the U.S. currently stands at 42.3%. The national homeownership rate is 64.1%, while the rate for whites stands at 72.2%. Left unaddressed, the Black homeownership rate will fall even further by 2040, Urban Institute projects .

The Black Homeownership Collaborative identified seven areas requiring attention to make it its goal possible within nine years:

1) homeownership counseling; 2) down payment assistance; 3) housing production; 4) credit and lending; 5) civil and consumer rights; 6) homeownership sustainability, and; 7) marketing and outreach. Among the actions called for by the group are increased funding for housing counseling services, a targeted down payment assistance program, and restoration of all legal doctrines and provisions of law that address systemic discriminatory policies.

The Black Homeownership Collaborative is led by a steering committee of executives from the Mortgage Bankers Association, NAACP, National Association of REALTORS®, National Association of Real Estate Brokers, National Fair Housing Alliance, National Housing Conference, National Urban League, and Urban Institute.

“With the current Black homeownership rate being lower than when housing discrimination was legal in our country, a bold and collective effort is needed to rectify this national tragedy,” said David Dworkin, president, and CEO of the National Housing Conference. “The 7-point plan of the 3×30 initiative marks a monumental step in doing this, and NHC is proud to help co-lead a broad group of housing and civil rights organizations who are committed to moving our nation forward on closing the racial homeownership gap.”

“The NAACP is encouraged by the development of this 7-point plan,” said Derrick Johnson, president, and CEO of the NAACP. “Successful implementation would increase Black homeownership by 3 million new homeowners, aligned to the NAACP’s continued commitment to decreasing the racial wealth gap.”

“Homeownership is an indispensable wealth-building tool and is inextricably linked to an abundance of opportunities,” said Lisa Rice, president, and CEO of the National Fair Housing Alliance. “As the Alliance embarks on our Keys Unlock Dreams Initiative to increase homeownership among communities of color, we look forward to our continued partnership with the Black Homeownership Collaborative to make homeownership a reality for millions of people who have been excluded from our housing and finance markets.”

“With homeownership a major driver of intergenerational household wealth and financial stability, the nation cannot achieve true racial and economic justice without addressing the barriers to Black homeownership,” said Marc H. Morial, president, and CEO of the National Urban League. “I’m confident that with the expertise and commitment represented among the Black Homeownership Collaborative, we can clear a path to the American Dream for every family.”

“The persistent gap in homeownership rates among Black and white Americans illustrates how racial inequality in our society translates into wealth inequality,” said Bryan Greene, vice president of policy advocacy at the National Association of REALTORS®. “NAR is pleased to join this dedicated group of widely-respected organizations in the Black Homeownership Collaborative to pursue our shared goals. We look forward to continuing our work to secure federal and local-level policies which will raise Black homeownership levels, strengthen communities, and improve the American economy.”

“The Black Homeownership Collaborative’s 7-point plan mirrors the goals the National Association of Real Estate Brokers has been advancing since our inception in 1947,” said Lydia Pope, president-elect of the National Association of Real Estate Brokers. Expanding sustainable homeownership opportunities for Black Americans by eliminating disparate systemic barriers, increasing housing counseling services, and purging biased real estate industry practices represent the elements of a wealth-building strategy destined for achievable success. The “3by30” initiative requires the long-term commitment by Collaborative members, committed government officials, fair-minded real estate professionals, and an even-handed financial services industry to close the racial wealth gap that serves to raise the economic futures of Black Americans.”

“The 7-point plan consists of concrete and sustainable steps that will substantially increase Black homeownership by 2030,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association. “We look forward to working with Secretary Fudge, HUD, the Black Homeownership Collaborative, and other stakeholders to ensure equal opportunities for everyone who aspires to enjoy the personal and financial benefits that come with owning a home.”

“The 3by30 goal set by the Black Homeownership Collaborative to significantly narrow the racial homeownership gap by 2030 can be reached by first understanding the policies and practices that led to that gap and then working collectively to address them, as the 7-point plan lays out,” said Janneke Ratcliffe, associate vice president for the Housing Finance Policy Center at the Urban Institute.

For information on how the Black Homeownership Collaborative arrived at the 3 million net new homeowner goal, click here .

Contact:

Andrea Nesby anesby@nhc.org

202-466-2121 ext. 240

Editor’s Note : The Cleveland State University event at which this announcement is made today at 1 p.m. ET is livestreamed here.

The post Housing and civil rights leaders announce national initiative to increase Black homeownership appeared first on National Association of Real Estate Brokers .

America Reckons with Racial Injustice

Thu, 27 May 2021 20:27:00 GMT

Black Americans And The Racist Architecture Of Homeownership

Last summer, DonnaLee Norrington had a dream about owning a home. Not the figurative kind, but a literal dream, as she slept in the rental studio apartment in South Los Angeles that she was sharing with a friend.

At around 2 a.m., Norrington remembers, “God said to me, ‘Why don’t you get a mortgage that doesn’t move?’ And in my head I knew that meant a fixed mortgage.”

The very next morning — she made an appointment with Mark Alston, a local mortgage broker well known in the South LA Black community, to inquire about purchasing her very own home for the first time.

She was 59 at the time.

Alston has built his lending practice on the hope of expanding access to homeownership for Black Americans. He says they have been systematically discriminated against by the real estate industry and government policy. Unlike most loan officers, Alston works with his clients for months — even years — to disentangle a convoluted loan application process, pay off bills and boost credit scores so they can ultimately qualify for a home loan.

Today, Norrington and her younger sister MaryJosephine Norrington own a three-bedroom house in Compton, where three generations of her family currently live.

Owning a home is an undeniable part of the American dream — and of American citizenship. It is also the key to building intergenerational wealth. But Norrington’s homeownership success story is an increasingly rare one for Black Americans.

Over the last 15 years , Black homeownership has declined more dramatically than for any other racial or ethnic group in the United States. In 2019, the Black homeownership rate was about as low as in the 1960s , when private race-based discrimination was legal.

The story of housing discrimination is rooted in a long history of racist government policies perpetuated by the real estate industry and private attitudes that began with slavery. The federal government began to push and expand homeownership in the New Deal era through innovations like the 30-year mortgage.

But one way Black people and other minority groups were left out systematically was through a process known as “redlining” which labeled certain areas as “risky” for a home loan. African Americans and immigrants were relegated to areas, marked in red on government-sponsored maps , where poverty was most concentrated and housing was deteriorating.

The Fair Housing Act of 1968 recognized segregationist practices like redlining to be unconstitutional. But the law only prohibited future, formalized discrimination rather than undoing the foundationally racist landscape on which homeownership in America was built.

The vicious cycle and legacy of redlining has persisted: Residents of redlined communities struggled to receive loans to buy or renovate their homes, which led to disrepair and a decline of a community’s housing stock. That in turn forced businesses to close and depressed tax revenue, diminishing school funding.

Today, many of the same neighborhoods that were redlined continue not only to have the highest poverty rates, but also worse health outcomes that lead to shorter lifespans. And Black Americans are nearly five times more likely to own a home in a formerly redlined neighborhood than in a greenlined, or “desirable,” neighborhood, resulting in less home equity than white Americans have.

The West Coast has often held hope as a cultural and political promised land for marginalized groups. During the first and second Great Migrations, millions of Black Americans moved west to escape the Jim Crow South in search of more equal treatment and opportunities — in part, because legal, racist policies and practices were so widespread all across the country at that time.

But while Los Angeles, one of California’s major metropolises, would become the battleground for hard-fought civil rights victories for Black Americans, it was also a place where housing segregation, predatory real estate practices and exploitative lending thrived.

Our story begins with one Los Angeles neighborhood, known as Sugar Hill, where the Black community successfully fought racially restrictive covenants only to later face another threat — from the freeway.

Beneath the Santa Monica Freeway, lies the erasure of Sugar Hill

The tree-lined boulevards of the West Adams neighborhood are studded with stately homes.

“That was Marvin Gaye’s place right there,” says Rha Nickerson, who grew up in the area, as she points to one such two-story house on Gramercy Place.

It’s easy to tell from the ornate architecture of the houses, the antique street lights and the wide roads that the neighborhood bore witness to a lot of history. But it’s hard to miss the loud hum of the Santa Monica I-10 freeway coming from behind a large concrete wall at the end of Marvin Gaye’s street.

Siblings Rha and Van Nickerson are now 73 and 72, respectively. They spent formative years of their childhoods in this neighborhood, which was once called Sugar Hill — a nod to the thriving Black Harlem Renaissance neighborhood of the same name. Doctors, entrepreneurs and oil barons lived in Sugar Hill — even legendary stars like jazz singer Ethel Waters and Gone with the Wind actress Hattie McDaniel.

But Sugar Hill’s thriving Black community was an exception: It managed to exist despite systemic efforts to prevent Black people from buying homes in much of Los Angeles.

One of the most prevalent tools white residents used to maintain the segregation — across America and in Sugar Hill — was the racially restrictive covenant . These agreements, embedded in property deeds, made homeowners promise never to sell to African Americans or other minority groups. In 1940, 80% of properties in Los Angeles had these restrictions attached to them.

Rha Nickerson remembers her father teaching her about these covenants when she was a young girl, and says that it was only because people like Hattie McDaniel fought these restrictions that her family was able to live there.

Racially restrictive covenants were ubiquitous in Sugar Hill at the time, like many places in America. But some white homeowners willingly violated them to sell to Black buyers, in part because Black people were willing to pay more since there was far less property available to them. The willingness to violate covenants was especially the case around the Great Depression, when many homeowners were desperate to sell.

The first African American known to purchase a home in Sugar Hill was entrepreneur Norman Houston, who bought property in 1938. In the years following, a wave of Black families moved into the area.

But one white homeowners association did not like the way its neighborhood was changing. So members of the West Adams Heights Improvement Association sued their Black neighbors for violating racially restrictive covenants in hopes of having them evicted — even though white sellers had violated the covenants.

McDaniel, Houston and their neighbors fought back with their own Black homeowners association called the West Adams Heights Protective Association. Two of Houston’s grandchildren, Ivan Houston and Kathi Houston-Berryman, say they remember their grandfather as a leader in the movement for housing justice for Black Angelenos.

“He always did have a vision and I think he was what is known as a pacesetter … because he was always moving ahead,” Houston-Berryman says. Ivan still has his grandfather’s notebook that documented the West Adams Heights Protective Association meeting minutes, including the discussions the group had about fighting racially restrictive covenants.

After years of planning, the parties involved with what came to be known as the “Sugar Hill case” took to the Los Angeles Superior Court on the morning of Dec. 5, 1945. Hattie McDaniel, her codefendants, and 250 sympathizers “appeared in all their finery and elegance.”

The white plaintiffs claimed Black homeowners in Sugar Hill would lead to declining property values in the neighborhood, even though their Black neighbors had well-maintained properties with increasing home values. Such racist thinking was in line with the dominant logic of the real estate industry at the time — the logic underlying redlining.

In his retort, civil rights attorney Loren Miller, who represented the Black homeowners, used an argument that had never worked in any U.S. court before — that restrictive covenants violated the California Constitution and the 14th Amendment, which mandates equal protection under the law.

Taking the packed courtroom by surprise, Judge Thurmond Clarke ruled in favor of Miller. “Certainly there was no discrimination against the Negro race when it came to calling upon its members to die on the battlefields in defense of this country in the war just ended,” Clarke said.

This victory did not just mean the Black residents of Sugar Hill got to stay in their homes — it set a precedent for the 1948 U.S. Supreme Court Case Shelley v. Kraemer , also argued by Miller, that would deem racially restrictive covenants unenforceable.

Amina Hassan, who has written a biography about Miller, says the win was monumental because “housing was the crux of it all.” She says access to safe, quality housing meant Black people could “have their children in better schools, they could find jobs in the area. Housing was the key to greater wealth.”

In 1952, a few years after the Supreme Court ruling, Rha and Van Nickerson’s family moved into the Berkeley Square community of Sugar Hill. The siblings’ eyes light up recounting their childhood there.

“We got our wagon and we’d go up and down the street and selling lemonades,” Van recalls. They share a laugh and Rha adds, “We learned how to drive in Berkeley Square because the streets, there was no traffic. It was so comfortable then.”

But just months after the Nickersons moved in, rumors began to spread that yet another threat to Sugar Hill was looming — a freeway. It was part of a federal push in the 1950s to modernize America’s roadways, and many of these highways ultimately cut through communities of color. The proposed plans called for the Santa Monica Freeway to run east to west, razing Berkeley Square completely and splitting Sugar Hill in two.

“I remember quite vividly and I remember my father being so upset. …I remember meetings with homeowners in Berkeley Square,” Rha Nickerson says. Some of those homeowners banded together and lobbied against the freeway at the state Capitol.

But this time, all they were able to accomplish was delaying the project. The California Highway Commission unanimously approved the freeway that would decimate Rha and Van Nickerson’s childhood home. Van remembers looking outside of his bedroom window. “I watched the tractor bulldoze these homes down.”

The government seized the Nickersons’ home through eminent domain — and while the U.S. Constitution requires “just compensation” for any property acquired this way, residents who lost their homes were not entitled to assistance from the government in finding and moving to new homes.

Rha Nickerson felt her family was cheated. “I remember my father telling me about eminent domain, and how there was no option to stop this. The valuation for our home was quite low; it was not market value that we were compensated for. And so it was quite an upheaval.”

It was an upheaval Rha’s father told her would never have happened if Sugar Hill were a white neighborhood. “He was very, very angry. He felt the city government resented Black people living there, and this is their way of demolishing a very viable community to support racism,” she says.

At the time, highway planners used the language of science to justify building freeways through communities of color, says Eric Avila, a professor of urban studies at UCLA. “They presented a kind of dizzying array of charts and graphs to insist that this was the most economically efficient route for this particular freeway. They denied any questions of race, they denied any questions of bias.”

What they did instead, Avila says, was say they were targeting so-called “blighted” communities. “I don’t think we know the extent to which Sugar Hill was designated a blighted area because it was affluent. … But in the discourse of urban planning in the mid-20th century in the United States, blight was often synonymous with people of color and with African Americans in particular.”

By 1963, the construction through Sugar Hill began and Rha and Van Nickerson’s family home was replaced with traffic lanes. Around that time, the California Division of Highways proposed another freeway that would cut through Beverly Hills. But when that wealthy white community protested, officials canceled construction.

Almost 70 years later, the Nickersons still feel the loss of their childhood home. “It was just sad,” Rha Nickerson says. “I didn’t know what to expect because that’s all I knew was Berkeley Square, and I really felt very secure in the community. So I was quite rattled by it all.” She and her brother say that after the freeway forced them out, they never quite experienced the same safety and comfort that Sugar Hill provided.

Van Nickerson recalls a particular moment when he knew things had changed. “We moved over onto Bronson Avenue and I immediately got into some problems. Most of that neighborhood was white and a white boy called me a n***** in front of my house. And pardon my vernacular, but I kicked his ass. You know, that was the beginning of the real world for us.”

For many of the residents in the area today, deafening road noise, toxic pollutants, and the resulting health conditions they cause are part of everyday life. This pattern has played out in cities all across America — affecting communities of color most.

Before Van and Rha Nickerson parted ways during a recent visit to their old neighborhood, they closed their eyes and listened for the sounds of their beloved Berkeley Square one more time — only for Van to hear “the rumbling of the automobile.”

“That was nonexistent when we were kids. It was quiet,” he said. Rha nodded in agreement, adding, “You can’t hear the birds anymore.” She headed to the corner to catch the next bus to Inglewood, where she lives now.

Van got into his car to begin his journey home to a town more than an hour away. His drive would begin on the Santa Monica Freeway — and take him right through the middle of what was once known as Sugar Hill.

Blockbusting: How a predatory real estate practice changed the face of Compton

As the construction that made Los Angeles “the city of freeways” ramped up in the early 1960s, white Americans continued to move to newly developed suburbs that dotted the borders of urban city centers.

It had been nearly a decade since racially restrictive covenants had been lifted, so slowly, more neighborhoods were opening up to Black residents like Robert Lee Johnson’s family.

Johnson and his two brothers lived in a public housing complex in South LA until his mother Gaynelle became an X-ray technician and married his stepfather, James Ferguson, who was an aerospace engineer. In 1961, they bought property from a white couple just north of downtown Compton, a suburb just south of downtown Los Angeles.

Johnson remembers moving-in day. “I see moving vans, trucks and everything all down the street,” he says. Johnson was 5 years old at the time, so he says he thought “it was moving day for everybody.” And he noticed that all the other families moving in were were Black, too.

In the years before covenants had been deemed unconstitutional, Compton was a nearly all-white city. Suddenly, when covenants were lifted, the real estate industry recognized a new, untapped market could be targeted for home sales.

But for Black people to move in, existing homeowners would have to make way. So, the real estate industry targeted white homeowners to convince them to sell their homes using a scheme known as blockbusting.

The underlying idea was to create panic among white homebuyers by creating the expectation that Black homebuyers were moving in and would, in turn, lower property values in their neighborhoods. There are accounts of real estate agents recruiting Black people to walk around white neighborhoods with strollers to create the impression that African American families were settling in.

Agents would convince white homeowners that their houses were losing value by the day because of the looming threat of Black neighbors, so the homeowners would panic and sell. Then, the agents would turn around and sell those homes at inflated prices to Black buyers — who were eager to make a start in better neighborhoods.

Kitty Felde, who is white, grew up in Compton in the 1960s and remembers a flyer appearing under her family’s front door. “It had one very clear message and it was, ‘Sell now, because you’re never going to be able to get the money you want for your house.’ And they didn’t say this but it was like, they are moving in.”

Felde says it was clear the flyers were referring to African Americans. In the years to come, she began noticing the neighborhood changing and new faces at school. Her family chose to stay, but many white neighbors fled and families like Robert Johnson’s took their place.

Johnson has warm memories of the years that followed “moving day” in 1961. He says Compton felt like a “step into another world” compared with the public housing complex his family was living in prior to their move. Though their new home was shared with his brothers, it was spacious. He recalls having fruit trees in his backyard — oranges, loquats and persimmons. “I didn’t know what a loquat was until I got to Compton!”

He remembers going to a local recreation center and park to learn how to swim, play basketball and perform in community Christmas plays. “Our parents were involved, you know. Your father was out there being a coach, the mothers were out there supporting the team, selling hot dogs.” He says it was a typical American suburb.

Until the mid-1960s, Compton was a thriving Black city with Black political power — it had elected its first Black councilman, Douglas Dollarhide, who eventually went on to become the city’s first Black mayor. Union jobs were opening up to Black workers, and Compton was home to better, integrated schools and a city college.

But while Compton represented social mobility for many Black Americans, it also came to represent their exploitation. Predatory practices, like blockbusting, forced families to overpay for homes that would eventually decline in value as more Black residents arrived. According to census data, the median home price in Compton in 1960 was $12,800. Johnson’s family paid $17,500 — or 37% more — despite it being a smaller home than most in Compton at the time.

Josh Sides, a professor of history at California State University, Northridge, says those numbers strongly suggest Johnson’s family was a target of blockbusting. And after more Black residents moved in, home prices languished in Compton over the next several generations.

“The really evil part of blockbusting, in my view, is that it perpetuated the notion that Black people in your neighborhood diminished value,” Sides says. “And because of that perception, it became a self-fulfilling prophecy. That is, it became true that a Black person moving to your neighborhood meant your value declined because, of course, property values are largely the function of social decision and social beliefs.”

By 1970, Compton’s Black population had reached 71%. But as more white residents left, their businesses and tax base did, too. A number of economic factors also led to fewer manufacturing jobs in the area, which were the backbone of Compton’s steady employment. Around this time, industrial jobs had largely moved to LA’s suburbs, unemployment in Compton was skyrocketing, and it continued to worsen into the next decade.

Johnson remembers some neighbors began having trouble making their mortgage payments. “The first time I really noticed it personally was at school because you’re sitting in class and your classmates are gone,” he says.

That’s when he recognized something had changed. Wilson Park, where he had had taken swim lessons and played basketball, was suddenly without paid adult supervision, which Johnson remembers resulting from a loss in the city’s revenue.

“People in Compton were put in a very bad position,” he says. “Legitimate jobs were gone, and then comes this — it’s more than a drug. It was almost like a demonic spirit.” He is referring to the crack epidemic that took hold in Compton during the 1980s.

Nearly three decades after his family had purchased his childhood home in Compton, Johnson realized he didn’t want to raise his own son in his beloved city.

“One day, I’m sitting in front of my house washing my car, and some fool from a block away had gotten a new rifle and he starts shooting out the street lights.” To protect his son, Johnson felt he had no option but to leave Compton.

When Johnson’s family sold their home in 1988 for $64,000, it was worth less than what they paid in 1961. Adjusted for inflation, that house lost nearly 8% of its value over 27 years.

But even though Johnson left Compton, Compton never really left him. He’s written a book about the city’s history, he’s a founding member of the city’s historical society, and you can see his face brighten instantly when he spots an old neighbor during a recent visit.

A window of opportunity: Black flight from Compton to the Inland Empire

Robert Johnson was just one of thousands of Black Comptonites who began streaming out of the city in the 1980s in search of more space and safer neighborhoods. The face of the once majority Black city was changing quickly as its African American residents largely moved inland to newly built exurbs.

Billy Ross, now 45, spent the 1980s and early ’90s growing up in Compton just as Johnson was relocating his family. “Compton was changing around us — and fast,” Ross says.

He describes his childhood there as both “magical” and “incredibly challenging.” Magical because it was a largely Black city with political power, which meant there was diversity within the Black community. “It was a spectrum of people, a spectrum of Black class … you know, from professional people to people [that] are just getting by. I mean, that’s magical.”

Ross’ eyes crinkle and a smile spreads across his face when he recalls sitting on his front porch as his sister would braid his hair and a neighbor would walk past, making spontaneous plans to play a game of dice around the corner. He says there was always something exciting happening on his block. But then his smile fades. “The Compton I grew up in really doesn’t exist anymore.”

But the “incredibly challenging” part of growing up in Compton, he says, came when the crack epidemic and its ripple effects hit. Economic inequality and police violence against Black people in Los Angeles were at a fever pitch. The rising tension between law enforcement and African Americans erupted in the 1992 uprising when four police officers were acquitted after brutally beating a Black man named Rodney King.

Ross’ relatives and neighbors began trickling out of the city in search of more space, good schools, and safety. It was also becoming increasingly unaffordable to purchase property in Los Angeles County. Like many others, Ross’ relatives turned their gazes to the Inland Empire — a stretch of land that began about 50 miles east of LA. Not long before, it had been mostly desert, vineyards and factories.

But then, a window of opportunity opened for potential Black homebuyers when newly developed cities like Rancho Cucamonga cropped up. Ross remembers visiting his relatives nearby. “None of this existed. … These houses were built like ’06, ’07, ’08.” By the early 2000s, so many from Compton had relocated to the Inland Empire that one of its neighborhoods became known as “Little Compton.”

Ross recalls his impression of life in the Inland Empire as a teenager. “It’s like, ‘You guys are going to buy a five-bedroom house and you’re going to have a pool. Like what? That’s super fly … and people were willing to commute for that.” Even though housing was cheaper and more spacious in the Inland Empire, most jobs stayed in LA, which meant commuters spent anywhere from three to five hours in rush-hour traffic per day.

Ross’ parents chose to stay in Compton. Their philosophy was, “don’t move, improve.” That’s a phrase Ross says Black people hear a lot. “In the places where we are en masse, there is often an incentive to leave, and that’s messed up because you don’t get the generational, the institutional, cultural insulation. You don’t get the transfer of energy. And you end up going from where you are rich in so many ways — maybe not financial — but you’re rich. And you go elsewhere looking to carve out some economic security. But culturally, now you are diluted.”

But even for Ross, who holds such allegiance to Compton, moving inland eventually became the most practical option. In 2000, after he had graduated college, he married his wife, Tamara, who rented a home, and then they briefly owned a condominium 25 miles northeast of Compton. A few years later, when they learned they were expecting their first child, they decided they needed more space and had new considerations, like good school districts.

So, in April 2006, the couple zeroed in on a four-bedroom house with a three-car garage in the city of Fontana in the Inland Empire. The entire lot was almost 8,000 square feet. It would cost $525,000.

Their loan officer offered them terms they could not refuse — something commonly known as a NINJA loan . They would have a minimal down payment — far lower than the standard 20% — and they would need no proof of income or assets. All the officer needed was a credit check, which was no problem for the couple because they had high credit scores. It was so easy, and they had been told they could always refinance if they needed a more affordable payment later down the line.

“There was this kind of feel that this is a secret and it’s being brought to the masses now. That was even part of the pitch. … You remember this feeling like, ‘Oh, yeah, this is like the kind of loan white people use.’ You know, like, ‘Why would you use your own money to buy a house?’ ”

Immediately, Ross threw himself into the pleasures of suburban life. “The newness of it was cool. This was a one-story house and it had space inside and outside. And I could water my own grass like my father did. I had grass !” Ross was transitioning into a real estate career at this time, Tamara was climbing the ranks as a prosecutor, and they were growing their family. Life in Fontana was good.

“And then, by the fall of ’07, all hell broke loose,” Ross says. The global financial crisis struck and suddenly, the oasis that was the Inland Empire was beginning to disappear before his eyes. Nearly 16% of homes in the region went into foreclosure, making it one of the hardest hit places in the country.

Many homeowners in the area sought help from the Fair Housing Council of Riverside County, where Rose Mayes is the executive director. “I had to create a whole new [foreclosure] department” because of the high demand for this kind of help, she says. The phone calls from those seeking help were incessant. “They were experiencing pain,” Mayes says. “They didn’t know what to do. … people who thought they had done the right thing for the right reasons and it didn’t happen that way.”

Many people Mayes remembers helping were buying homes or refinancing for the first time, making them more vulnerable to the predatory, subprime loans that were widespread during this time. And she noticed that Black and Latinx people were most commonly targeted for such loans.

This is a pattern that has now been tracked all over the United States. Several studies have found that Black and Latinx borrowers were charged significantly more for mortgage loans than white borrowers with similar financial situations between 2004 and 2008.

A financial innovation called “ mortgage-securitization ” incentivized investors to sell as many loans as possible. Lenders would often steer homebuyers who could have qualified for conventional government mortgages into riskier loans that put more money in the lenders’ pockets — telling buyers they could have a bigger house, lower payments, or both.

The people who were disproportionately targeted belonged to the same communities that had been redlined, locked out of neighborhoods because of racially restrictive covenants, and blockbusted. Now, predatory loans would take away the wealth that so many had spent their lifetimes building.

By 2008, Ross says his house was worth half of what he paid for it two years earlier. But his mortgage payments didn’t reflect that decreased value. He and his wife were paying two times what neighbors were paying to rent the homes along his street — many of them homes that had been foreclosed on by banks.

Homeownership did not shape up to be what Ross once thought — a promise to pass on wealth and security to his children.

Ross says he tried to refinance time and time again because what he was paying was becoming unsustainable. But the lenders refused — because ironically, as long as he kept paying his mortgage every month, they had no incentive to cut him a better deal. He thought, ” ‘Oh, I know this game,’ and that was tough because you have made a commitment … and the commitment is tied, in a way, to your identity. You see yourself as a certain type of person.”

But after paying what he says felt like an exorbitant mortgage for several years, “Tamara and I ultimately decided that these people don’t give a damn about us. And they are content to bleed us dry.”

So they stopped paying. Ross knew their credit scores would tank and they would have to swallow that hit for years to come. But he also knew this strategy was the only chance they had to hold on to their house.

Eventually, about two years after they employed a “strategic default,” Billy and Tamara Ross’ gamble worked. A lender finally agreed to help them refinance. They spent years building up their credit score again. In 2019, they were able to sell the house in Fontana and move into a new one nearby.

Mayes, of the Fair Housing Council, says many homeowners in the Inland Empire are still reeling from the financial crisis. Others she remembers helping simply disappeared, she says.

Billy Ross considers himself one of the lucky few Black people who made it out, despite a system he thinks is designed to keep African Americans on the bottom.

“It really makes me sad,” he says. “There ain’t a whole lot of us on this side where we’re able to function and kind of take advantage of some of the things that this society has to offer. A lot of us, we don’t own property. We don’t have equity in the stock market. We don’t have equity in this country. We don’t own stuff. And ownership is equity.”

That is why Ross isn’t wasting his second chance. He and his wife have been building what Ross calls his soon-to-be “forever home.” He recalls a recent conversation with a loan officer who was trying to lock him into a loan now — promising that if he didn’t like the terms, he could “just refinance” down the road.

It was all too familiar to Ross, who thought, ” ‘This guy’s asking me to gamble.’ And I told him … ‘Dude, I’m Black. … We’re going to measure twice and cut once. And we’re probably going to keep this house forever, whether we live in it or not. It’s going to belong to our children.’ ”

For Ross, passing on that property is not just about leaving behind a house for his kids. It’s about passing the baton to the next generation, and the one after that — so that one day, they have something to call their own.

Black homebuyers today pay an unequal price

A few months ago, DonnaLee Norrington celebrated her 60th birthday in the newly purchased Compton home she and her sister, MaryJosephine, now call their own. Norrington thought she would never own a home again after losing the condominium she and her ex-husband briefly owned before the financial crisis. She said losing that home had turned her credit upside down and from that point on, she rented.

“I didn’t even consider homeownership just because I thought it was out of my grasp — not so much financially, but just the fact that maybe I was too old to own a home and I just didn’t want all the responsibility that came with it,” Norrington says.

Then, she had that dream in which God told her to go to Mark Alston, the mortgage broker, to buy a home with a fixed mortgage. Alston says he understood Norrington’s vision, but “she started crying before we closed. I told her to wait. Let’s get all the way done before we celebrate.”

Alston says he got into real estate because he wanted to do something for his community — for people like Norrington — to change the persistent gap between Black and white homeownership. “I mean, it’s pretty unbelievable to me [that] almost 75% of the white community owns houses. … And in my community, you know, it’s like 2 out of every 10 in LA, 4 out of every 10 in the country,” he says.

Alston has mostly Black clients in and around LA. He says there are complex, systemic barriers holding Black Americans back from homeownership, many of them tied to the process of acquiring an affordable loan that actually allows them to retain and pass on generational wealth.

In order to simply qualify for a loan, a potential borrower must be favorably “creditworthy” according to the lender. In the existing financial system, it is the FICO credit score that primarily determines that creditworthiness, but a third of Black Americans do not even have one.

And for those who do, Alston says, the scores are not as fair or predictive as they could be because the score does not factor in a wide range of payments ordinary people pay. For example, cellphone bills, utility bills and even rental payments are not included in the FICO scores lenders typically use.

Many financial experts agree that these kinds of payments are good indicators of one’s ability to pay a monthly mortgage. Laurie Goodman of the Urban Institute told NPR, “I would assume that if you are looking at my credit score, whether or not I make rental payments is far more predictive than whether or not I pay my Macy’s credit card — but my Macy’s credit card is included and rental payments are not.”

Alston says, in the case of DonnaLee Norrington and her sister, while they did qualify for decent loans with their existing credit situations, a little bit of guidance in paying off bills and waiting for negative portions of their credit history to expire helped them get a better rate, and eventually, qualify for a refinance. “A lot of people have disputes with credit over a $200 or $300 cable box bill,” which he says could significantly lower credit score.

Not all mortgage brokers help their clients dig through paperwork and small disputes to get a better loan. But Alston says most Americans lack an understanding of a complex financial system, so this kind of guidance goes a long way. “It has nothing to do with intelligence. It has to do with familiarity with financial operations,” he says.

Beyond credit scoring, an additional barrier to homeownership became more prevalent after the financial crisis — risk-based pricing, which essentially means the riskier the borrower, the more a lender charges that borrower to loan them money.

About half of Black homebuyers get loans backed by the mortgage giants Fannie Mae and Freddie Mac, which primarily use a borrower’s credit score and down payment to measure the risk that will determine the cost of the loan. Because the average Black borrower’s credit score is about 60 points lower than the average white borrower’s score, and because Black buyers, on average, make smaller down payments, risk-based pricing tends to drive up costs for the average Black homebuyer.

Prior to the global financial crisis, Fannie and Freddie used risk-based pricing to a limited degree, but they generally enabled a broad spectrum of borrowers to access fairly similar rates on their loans. But in response to the crisis, the mortgage giants got more aggressive with risk-based pricing — which disparately affects borrowers with less wealth and lower credit scores. Alston calls this “the poor-pay-more fee.”

Economist Ed Golding worked at Freddie Mac during the crisis. Now at the Massachusetts Institute of Technology, he has analyzed how these extra charges affect Black homeowners’ wealth. “It’s inherently unfair that basically we raised the prices during the financial crisis so that these people who were hurt by the financial crisis could bail out the financial institutions,” he says.

Golding says homebuyers with less wealth and lower credit scores are still being asked to pay more today. “It seems that we’re asking the victims to pay and to pay again for what was really not their fault,” he says.

In separate statements to NPR, Fannie Mae and Freddie Mac said this type of pricing helps them manage risk, and has “provided stability during the pandemic and enabled homeownership for millions of families, including many families of color.”

A third barrier to homeownership that disproportionately affects Black borrowers is mortgage insurance, which is typically required if a borrower makes a down payment that is less than 20% of the loan amount. In fact, 9 in 10 Black homebuyers pay for mortgage insurance compared to only 6 in 10 white homebuyers. And insurance is just another way the financial system accounts for risk — the cost of which is passed on to the “risky” homebuyer.

The Fair Housing Act does not consider any of these risk-based barriers to be illegal. Until now, courts have ruled that lenders can price loans in ways that disproportionately disadvantage certain racial groups if that pricing is related to credit risk. But researchers at UC Berkeley have been exploring a fourth barrier that has nothing to do with credit risk: outright discrimination.

The researchers analyzed nearly 10 million home loans and found that Black and Latinx borrowers are still being charged more, even after controlling for risk. That means Black and Latinx homebuyers with the same credit score and percent down payment as white homebuyers are still paying more for their loans, despite posing no additional risk to the lender — which amounts to illegal discrimination, based on past court rulings.

The study also found that the higher the concentration of Black or Latinx residents in a neighborhood, the more Black or brown buyers in that neighborhood are overcharged.

“This effect is much more pronounced when we cut by geography,” says Robert Bartlett of Berkeley Law, one of the authors of the study. “And so, it is a legitimate concern that basically, this is kind of the new redlining that we’re faced with.”

In this case, rather than refusing to insure loans in Black and brown neighborhoods, lenders simply appear to be charging marginally higher rates to people who live in those neighborhoods. And the effect holds true even when computer algorithms are writing the loans. Their findings will appear in a forthcoming issue of the Journal of Financial Economics .

This idea, of including Black Americans in the housing market but charging them more to do so, is part of what Princeton scholar Keeanga-Yamahtta Taylor calls “predatory inclusion.”

“Once you pay this fee, that fee, this higher amount of money, now you get to participate equally with your white peers,” Taylor says. “And so not only does that impact the way that housing is supposed to generate wealth for people — it cuts into the wealth, the amount of money African Americans have to pay to enter into the housing market in the first place.”

The cumulative effects of these legal policies and discriminatory practices mean Black Americans pay more to own a home — what some experts call a “Black tax” on homeownership. It also means they accumulate less wealth over their lifetimes than white Americans — on the order of tens of thousands of dollars of lost savings and investments, according to an analysis by MIT’s Golding and his colleagues.

And while lenders and mortgage companies may say risk-based pricing is a fair way to account for risk, the broker Mark Alston has a different view of what “fair” means in America. “When you’ve had 350 years of not just unfairness but actual opposition — you had exclusionary zoning laws, you had private covenants, you had federally institutionalized redlining, now you have disparate housing finance policy. When you have actual opposition, ‘fair’ is an interesting concept.”

Alston says “a good head start beats fast running,” and worries that a 350-year head start for white Americans could mean Black Americans may never catch up — unless the financial system is changed to be more affirmatively equitable.

“I could care less about Black Lives Matter being painted on [a] basketball court,” he says. “How about an affirmative program to lower the gap between white and black homeownership? How about actual public policy that moves the needle, for real? How about a change in employment and pay that narrows the gap, the inequities between white and black pay? How about those type of things that will make a difference for future generations?”

In a statement to NPR, the National Association of Realtors, the largest real estate group in the country, acknowledged its past role in housing discrimination and said it has implemented anti-bias training programs for its members.

“Decades of systemic racism have left millions of minority households behind, a system NAR regrettably helped perpetuate a half century ago,” the group said. “Over recent years, NAR has recommitted itself to rectifying mistakes of the past, dismantling lingering nationwide housing inequities, and advocating for policies which ensure the market is more accessible in the years to come.”

Among his first executive orders, President Biden in January directed the Department of Housing and Urban Development “to take steps necessary to redress racially discriminatory federal housing policies .”

Alston plans to continue pushing for policy change that increases access to Black homeownership, all the while enhancing access through his own practice for people like DonnaLee Norrington.

Back on her quiet tree-lined street in Compton, Norrington sheds tears through a big smile as she reflects on her accomplishment. “I always feel like a late bloomer,” she says, but owning her own home is a relief.

“We don’t ever have to worry about, you know, somebody gonna sell it from up under us or anything like that,” she says. “We got our own little piece here. … I feel really good about that, you know, leaving some sort of legacy.”

It’s a legacy that remains out of reach for many Black Americans today.

Jonaki Mehta, Christopher Intagliata, Alejandra Marquez Janse, Sami Yenigun and Jolie Myers produced and edited the audio versions of this story, with additional editing help from Chris Arnold. Fact checking and research by Jane Gilvin, Mary Glendinning, Greta Pittenger, Colette Rosenberg, Barclay Walsh and Julia Wohl. Graphics by Zach Levitt and Ruth Talbot. Photography for NPR by Nevil Jackson. Photo editing and research by Michele Abercrombie, Nicole Werbeck and Di’Amond Moore. Avie Schneider edited and produced for the web, with additional editing from Gerry Holmes and Gene Demby. This story was inspired by Code Switch’s work on housing segregation .

The post America Reckons with Racial Injustice appeared first on National Association of Real Estate Brokers .

Black millennials lag other groups in building wealth, Fed study finds

Thu, 27 May 2021 02:46:00 GMT

Older Black millennials are less wealthy than their baby boomer parents at that comparable age and are also falling well behind their White and Hispanic millennial peers in building net worth, a recent study shows.

Economists at the Federal Reserve Bank of St. Louis examined how much wealth Black, Hispanic and White millennial families amassed between 2007 and 2019, then compared those figures to how much wealth those groups were expected to acquire during that period. Wealth was calculated by taking the monetary value of what a family owns — their home, car and retirement accounts, for instance — minus how much debt they have from mortgages, student loans, credit cards and other financial obligations.

By 2019, millennial White families had accumulated total wealth of about $88,000, compared with $22,000 for millennial Hispanic families and $5,000 for millennial Black families. None of the groups have met the expected level of wealth that researchers predicted, but “Black families were a staggering 52% below wealth expectations,” St. Louis Fed senior researcher Ana Kent Hernández said in her analysis of the data. In the study, Fed researchers stopped short of predicting if — or when — Black millennials will ever catch up to the previous generation.

A range of interrelated factors may help explain why Black millennials lag in building household wealth, the Fed researchers found.

“One possible reason is the increasing burden of student loan debt on this group,” Hernández wrote.

Other reasons may include low homeownership rates among Black millennials, being paid lower wages than their White counterparts and struggles to gain bank financing when starting a business. For many Americans, the go-to method for building wealth is buying a house, but Black Americans lag in that area as well. Fed data show that 41% of Black families owned their home in 2019, compared to 47% of Hispanic households and 73% for Whites.

The racial wealth gap doesn’t surprise financial expert Deborah Owens, who coaches Black women on how to build wealth. Low wages, mountains of student debt and inadequate retirement savings have all suppressed wealth creation for people of color, she said.

Black millennials entered the job market during the 2008 Great Recession with thousands of dollars in student loan debt, Owens noted. They also graduated with more debt than their White classmates, according to a Brookings study . Many Black professionals found themselves with few job prospects back then, so they enrolled in graduate school, Owens said. They paid tuition and most of their daily living expenses with student loans while in school, she added.

A decade later, many Black millennials have student debt well into the six figures, Owens said. “They’ve had to contend with the residue of the recession, and much of that caused them to take on more student loan debt than boomers ever had to,” she said.

More student loan debt, fewer 401(k) dollars

Federal Reserve data show that student loan debt is harming Black borrowers more than any other racial group. That’s partially because Black Americans have relatively lower income and can’t devote as much money to payments, the 2019 study showed.

Black millennials are also more likely to work in low-paying gig economy jobs that don’t offer employer-sponsored retirement accounts than White or Hispanic workers. Poor access to 401(k) and pension plans is inhibiting Black adults from saving for the future, Owens said. About 68% of White Americans had a retirement account compared to 41% of Blacks and 35% of Hispanic households, according to 2019 Economic Policy Institute data .

Widening U.S. inequality in recent decades, including racial and gender gaps in wealth and income, harm the entire economy, Owens said, noting that millennials now make up a majority of the middle class.

“The middle class drives the consumption and growth of every company,” she said. “And the less people we have in the middle class, the less economic growth we have overall.”

CREDITS: Khristopher J. Brooks / CBS News

The post Black millennials lag other groups in building wealth, Fed study finds appeared first on National Association of Real Estate Brokers .

Four Black men developed a Montgomery County suburb to provide a better life for some in their community. They received something very different in return.

Tue, 25 May 2021 16:54:00 GMT

In 1906, four African American men attempted to develop an elite suburb for African Americans along Wisconsin Avenue between Chevy Chase and Friendship Heights, Maryland. Despite facing intense hostility from adjacent white landowners, at least 28 people bought lots. However, their vision was ultimately undone using subtler methods, showing how nominally race-blind tools can serve racist ends.

As we talk about in our video presentation on the subject for the DC Archives Advocates , this story breaks down what happened in a development known as Belmont, Chevy Chase and what the story meant in the history of the suburbs and the racial geography of DC, connecting Friendship Heights in Montgomery County to Glenarden in Prince George’s County on the other side of DC.

The Belmont Syndicate and a dream for a better life

On June 28, 1906, four African American businessmen, Charles Cuney, Alexander Satterwhite, Michel Dumas, and James Neill, purchased a subdivided plot of land in Montgomery County, Maryland called Belmont using a white man as an intermediary, or straw buyer . The land had a complicated history that ultimately led back to the Chevy Chase Land Company, the developer of its namesake neighborhood right next door, which was founded by a powerful white supremacist, Senator Francis J. Newlands. Calling themselves the “Belmont Syndicate”, the four businessmen widely advertised the property in both white and Black newspapers as “high-class” and affluent. As they put it in the Washington Post , Belmont was “the only good subdivision in Washington where colored people are welcomed to buy.”

At least 28 African Americans took the opportunity, including a Civil War veteran, a Methodist preacher, connected members of DC’s Black elite society, and multiple single women. They started playing regularly at Canadian online casino and making good money.

White residents in Somerset, Chevy Chase, and Friendship Heights saw Belmont’s success with horror. One Friendship Heights resident told The Washington Times :

They threatened violence and ultimately arrested Satterwhite, a Syndicate member, who was on-site making sales. Facing a penalty of up to $30,000, the man was tried and acquitted, twice on the same day.

You don’t need a white hood to be racist

But none of this explicitly racist action stopped Belmont. And there were no explicitly racial covenants on the property. Instead, the Chevy Chase Land Company used financing tools to stall sales until the Belmont Syndicate ran out of money. When the Belmont Syndicate bought the land, they inherited a debt obligation ruled by a legal instrument called a Deed of Trust. This transferred the land to a third party, in this case, a bank that had the same leadership as the Chevy Chase Land Company. They refused to release the Syndicate from this debt obligation.

With no ability to move forward with more sales, and facing anxious purchasers, Satterwhite sold his shares to a white speculator. In response, Dumas, another Syndicate member, filed a lawsuit against nearly everyone involved. The litigation sprawled into two jurisdictions, and entangled over 30 parties and at least five separate cases. The cases form the most complete documentation of the event, but were unable to save the development.

In 1909, a Montgomery County court allowed the Chevy Chase Land Company’s affiliate to foreclose nearly all of the land. The Land Company was unable to reach a settlement with Dumas for another 15 years, by which time he had become a trustee of Howard University. In April 1926, the Land Company erased the legal subdivision of Belmont and incorporated the land into Chevy Chase Section 1A, leaving that thin strip to buffer Chevy Chase from Wisconsin Avenue. The only other remnant of the project is a street in Chevy Chase named Belmont Avenue.

History retold like a game of “Telephone”

Stories of Belmont circulated long after its quiet conclusion, becoming warped. In the retelling, Belmont was not a development for Black professionals, but one for servants and agricultural workers. The rumors suggested that the developers were not Black, and possibly were part of an extortion plot — a claim that had been made by opponents in Dumas’s court cases. In the memory of the events, the Black neighborhood is lower class, servile, or even criminally undesirable, just as the project’s contemporary opponents seemed to envision.

Belmont, and the curious trace it left on Wisconsin Avenue, explains a lot about the racial geography of DC. The successful suppression of the development was a sign that the pattern of suburban growth in DC would be segregated. African Americans, even affluent ones who wanted communities that were exclusive by price and protected from nuisances like the manure piles of a stable.

We are unable to prove a direct link, but after Belmont, developers only built suburbs for middle class African Americans, like Lincoln, Glenarden, and Fairmount Heights, east of DC in Prince George’s County, solidifying an existing trend. Conversely, the legal tools used by white developers at the turn of the century secured a future for the area northwest of the White House to be one of concentrated wealth and whiteness.

A community concept ahead of its time

We can tell from the records that the Belmont Syndicate intended to develop a modern suburb right when the concept was still being worked out. This new form of development used either public or private land use restrictions to ensure that neighborhoods would stay residential but serve as an investment. This makes Belmont one of the earliest known attempts by African Americans to build restricted residential suburbs for African Americans.

The Belmont Syndicate had enough confidence in the equal protection of property rights that they tried to stake a claim to an elite area next to Chevy Chase. That they attempted this at the run up to the Jim Crow era demonstrates how DC remained a place of opportunity for African Americans, where the dangers of crossing the color line could be navigated long after Reconstruction ended elsewhere.

But most importantly, Belmont’s demise shows that ostensibly racially neutral real estate practices can be used to discriminate against marginalized groups. The Belmont property did not have racial covenants, because they were understood to be unconstitutional in 1906. And it was mob violence that halted the development; legal posturing and sophisticated financing maneuvers exploited large scale social conditions to end Belmont. This exclusion would happen over and over again throughout the 20th century, and continues today.

CREDITS: Neil Flanagan / Kimberly Bender – Greater Greater Washington

The post Four Black men developed a Montgomery County suburb to provide a better life for some in their community. They received something very different in return. appeared first on National Association of Real Estate Brokers .

The Importance of Black Home Ownership in America

Fri, 21 May 2021 19:31:00 GMT

The post The Importance of Black Home Ownership in America appeared first on National Association of Real Estate Brokers .

Report: Up To $1.5 Trillion Could Be Added to U.S. Economy If Racial Wealth Gap In Housing Market Was Fixed

Thu, 20 May 2021 00:44:00 GMT

Homeownership for years has been an essential pillar for building wealth for most Americans.

Yet a new report by Clever Real Estate discloses some eye-popping statistics on how racial disparities continue to linger in the nation’s housing market. As such, the discrepancies are hindering Black Americans’ capacity to increase their personal finances.

America’s history of discrimination makes it extra hard for Black families to build generational wealth similarly to their white peers. Actually, the typical Black family has less than one-tenth of the household wealth of a parallel white family.

A pivotal place for Americans’ wealth is their retirement accounts and home equity. Retirement savings account for nearly 33% of household wealth and home equity about 29%, an August 2020 U.S. Census report revealed.

The racial wealth gap is evident in the housing market. Clever reported lenders conclude borrowers carry more risk if they have less money, resulting in Black families more likely to be denied mortgages. White Americans are 75.4% more likely — or 1.7 times greater — to own a home than Black Americans (44.1%).

Interestingly, Clever contends the racial wealth imbalance is constraining all Americans, not just Blacks. It claims clearing up the racial wealth gap would add $1 trillion to $1.5 trillion to the U.S. economy by 2028.

The most concerning aspects of the new findings are how severely homeownership can impact Black Americans’ family and generational wealth, says Clever’s Francesca Ortegren, who co-authored the report. While the racial wealth gap is driven by quite a few factors, homeownership and the value of homes owned by Black Americans are significant drivers, she told Black Enterprise by email.

More specifically, Black Americans are less likely to own homes than are white Americans but even homeownership itself does not quite make up the differences in wealth as homes owned by Black Americans are valued lower. “There’s less equity, commerce/consumer spending, and struggling economies in neighborhoods where the population is mostly Black as a result.”

More disturbingly, Clever disclosed a negative correlation between home prices and the percentage of Blacks living in any given zip code. It stated houses in most Black neighborhoods are worth less than 50% as much as neighborhoods where under 1% of the residents are Black. Even more amazing, in some cities, mostly non-Black neighborhoods are valued over 600% more than Black neighborhoods.

The research showed the average median listing price is around $167,508 in predominantly Black metro areas. That compares to $355,000 in neighborhoods where the percentage of Black residents is under 1%. That means the disparity greatly restricts money Black Americans could make from selling their homes.

The report included data from Realtor.com and Zillow.com, and the U.S. Census examined housing costs across the United States. Clever Real Estate is an education platform for homebuyers, sellers, and investors.

And over 10 years later, after the 2008 financial crisis worsened the racial wealth gap, Black communities have yet to rebound to a similar level as White ones. Clever found the difference between Black and white average home prices was nearly $57,688 in 2007. That gap increased stunningly to $94,489 by 2020.

Intriguingly, Clever says revitalizing Black neighborhoods can produce a healthier economy: Every 10% increase in total housing market wealth translates to $147 billion in extra consumer spending.

Clever is partnering with Dream Builders 4 Equity , which is creating new opportunities for home ownership, jobs for youth and minority contractors, and public dialogue about community needs in St. Louis. Clever says Dream Builders 4 Equity offers a way U.S. communities could help close the racial wealth gap.

Ortegren says disparities in homeownership rates, home values, and family wealth between Black and white Americans must be addressed at the community level, rather than the individual level. She added promoting and supporting efforts by organizations like Dream Builders for Equity is a great place to start as there’s evidence that revitalizing and supporting underserved communities can benefit everyone.

“That is, providing opportunity for underserved communities to gain equity, wealth, and grow the local economy tends to have a positive effect all the way to the national economy as more wealth in an area is correlated with less crime, lower rates of mental and physical illness, more businesses, more opportunities, and more consumer spending.”

CREDITS: Jeffrey McKinney / Black Enterprise

The post Report: Up To $1.5 Trillion Could Be Added to U.S. Economy If Racial Wealth Gap In Housing Market Was Fixed appeared first on National Association of Real Estate Brokers .

Black homeowner had a white friend stand in for third appraisal. Her home value doubled

Wed, 19 May 2021 16:57:00 GMT

The post Black homeowner had a white friend stand in for third appraisal. Her home value doubled appeared first on National Association of Real Estate Brokers .

National Association of Real Estate Brokers Announces New Interim Director

Tue, 18 May 2021 22:21:00 GMT

Washington, D.C. – May 17, 2021 – The National Association of Real Estate Brokers (NAREB) announces the departure of Executive Director Antoine Thompson as of Monday, May 17, 2021. Mr. Thompson served in this role since 2015, during which time he worked toward the shared goal of advocating for equal housing opportunities for underserved communities throughout the United States. The Board of Directors has appointed long-term member and current National Relationship Manager C.Renee Wilson as its interim director. NAREB, founded in 1947, is the largest and oldest minority real estate trade association in America with a mission of “Democracy In Housing”. Members of NAREB are known as Realtists.

Ms. Wilson has worked with NAREB since 2005. She brings a strong professional background in the areas of law, banking and real estate, and a core understanding of NAREB’s mission and vision. Ms. Wilson has been instrumental in the coordination and production of numerous special projects, most notably the State of Housing in Black America (SHIBA) report, which provides a comprehensive view into the factors that impact and impede Black families from becoming homeowners. For over a decade, she has managed relationships that are key to the production of the annual NAREB Convention, which brings hundreds of Black professionals in the real estate industry together for training, networking, and career support. Ms. Wilson has also worked with the organization’s budget and finance committee to develop a comprehensive annual budget, and she has designed strategies to reach fundraising goals.

“We are in an unprecedented era in the history of our country, and organizations like NAREB need to be at the forefront, driving positive change for the Black community. Ms. Wilson has a wealth of knowledge and experience working with NAREB, and her appointment brings a level of continuity and stability important to our membership and partners as we carry on with the important work of ensuring equality and inclusivity within the real estate industry,” said NAREB President-elect Lydia Pope.

“For over 15 years, I have worked side by side with NAREB leadership and membership to help Black Americans share in the financial benefits of real estate and the attainment of the American dream of home ownership. I am grateful for the opportunity to now serve this important organization and the community at large in an even greater capacity. I appreciate the trust and confidence the board has placed in me, and I will continue working to advance the mission and vision of NAREB,” Wilson said.

Previously, Ms. Wilson was the principal owner and franchisee of United International Mortgage Bank. She also boasts vast experience in the legal profession as a paralegal and legal secretary with the prestigious firms of Fulbright & Jaworsky, LLC, Weil, Gotshal & Manges, and Wickes Companies.

The Board of Directors wishes Mr. Thompson much success in his future endeavors. The search for a permanent executive director is underway via an internal personnel committee. For more information about NAREB, visit www.nareb.org .

ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each of the real estate disciplines.

* * * * *

FOR MEDIA CONTACT

The post National Association of Real Estate Brokers Announces New Interim Director appeared first on National Association of Real Estate Brokers .

ARE MILLENNIALS LEAVING CITIES? YES, BUT YOUNG ADULTS ARE NOT

Fri, 14 May 2021 18:49:00 GMT

millennials moving into their prime homebuying years were increasingly choosing homes in suburban locations

The post ARE MILLENNIALS LEAVING CITIES? YES, BUT YOUNG ADULTS ARE NOT appeared first on National Association of Real Estate Brokers .

Households of Color Expected to Dominate Homeownership Rate Growth

Tue, 11 May 2021 19:29:00 GMT

Earlier this year the Urban Institute studied the changing state of homeownership in the U.S., and DS News reported on a standout stat from said study— the soaring expected rate of homeownership among the Hispanic population .

More recently, research associates Lauri Goodman and Jun Zhu reported that , while the overall number of new homeowners will increase by 6.9 million from 2020 to 2040 and that nearly all of that increase will come from households of color, the way these demographics will look by state will vary widely. Goodman and Zhu expand on the January study, breaking down their data into three sets of state-level rankings, they say, “to show what homeownership will look like in the future and the implications it could have for the housing market.”

The overall number of new homeowners will increase by 6.9 million from 2020 to 2040, “with significant variation across states,” they reported.

For starters, it is useful to understand the overall regional homeownership rates. West Virginia has the nation’s highest homeownership rate (74.2%), followed by Iowa, Vermont, Maine, Delaware, Wyoming, Minnesota, Idaho, and Michigan. The District of Columbia, New York, and California have the lowest homeownership rates.

“Unsurprisingly, the states with the lowest homeownership rates had the most expensive housing. The average cost of a home in the five states with the lowest homeownership rates in 2020 was $525,973 versus $282,290 in the five states with the highest homeownership rates.”

Into the future, the number of new homeowners is influenced by the overall number of households and the growth rate of the homeowner population, the authors noted. Thus, larger states see more growth, which lands Texas (the second-largest state with the sixth-highest growth rate) and Florida (the third-largest state with the eighth-highest growth rate) on top, expecting well over a million new homeowners from 2020 to 2040.

As for homeowners of color, a demographic that will dominate the overall growth rate (especially Hispanic buyers, as previously reported), the authors ranked the 10 states with the highest homeowner-household increase among people of color.

They found that Texas, again at the top, will experience an increase of more than 1.5 million homeowners of color. They report that 67% of the increase will come from Hispanic households, 19% from Asian and other households, and 14% from Black households (“other” households include American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people).

Georgia, at No. 4, will experience a 51.4% growth rate among households of color, with 50% of the increase coming from Black households. Washington and New York will experience a significant increase in Asian and other homeowners. For these two states, 57% of the nonwhite homeowner increases will be from Asian and other families.

What this breakdown means for housing nationwide, say Goodman and Zhu, is that a one-size-fits-all policymaking approach is not the best solution.

“As federal and state policymakers tackle housing supply, affordability, ownership, and equity, they will need to remember that each state has a different starting point, factors, and trends.”

Finally, the researchers touched on the lack of inventory, especially affordable housing, and suggested Urban Institute’s state-level fact sheets , which provide detailed information about future household formation and homeownership trends, are “a great starting point” when it comes to addressing the shortage now and in the future.

“Though all states will show considerable growth in the number of homeowners of color, suggesting the need for more affordable housing, states with large increases in the total number of homeowners will face particularly acute housing supply shortages,” they concluded. “Those states will need to ensure zoning, permitting, and land-use processing will enable sufficient affordable housing production to meet the forthcoming demand.”

Credits: Christina Hughes / DSNews

The post Households of Color Expected to Dominate Homeownership Rate Growth appeared first on National Association of Real Estate Brokers .

Black Americans And The Racist Architecture Of Homeownership

Tue, 11 May 2021 18:11:00 GMT

This story is part of an NPR series, We Hold These Truths , on American democracy.

At around 2 a.m., Norrington remembers, “God said to me, ‘Why don’t you get a mortgage that doesn’t move?’ And in my head I knew that meant a fixed mortgage.”

She was 59 at the time.

Today, Norrington and her younger sister MaryJosephine Norrington own a three-bedroom house in Compton, where three generations of her family currently live.

Beneath the Santa Monica Freeway, lies the erasure of Sugar Hill

The tree-lined boulevards of the West Adams neighborhood are studded with stately homes.

“That was Marvin Gaye’s place right there,” says Rha Nickerson, who grew up in the area, as she points to one such two-story house on Gramercy Place.

But Sugar Hill’s thriving Black community was an exception: It managed to exist despite systemic efforts to prevent Black people from buying homes in much of Los Angeles.

The first African American known to purchase a home in Sugar Hill was entrepreneur Norman Houston, who bought property in 1938. In the years following, a wave of Black families moved into the area.

Blockbusting: How a predatory real estate practice changed the face of Compton

It had been nearly a decade since racially restrictive covenants had been lifted, so slowly, more neighborhoods were opening up to Black residents like Robert Lee Johnson’s family.

Nearly three decades after his family had purchased his childhood home in Compton, Johnson realized he didn’t want to raise his own son in his beloved city.

When Johnson’s family sold their home in 1988 for $64,000, it was worth less than what they paid in 1961. Adjusted for inflation, that house lost nearly 8% of its value over 27 years.

A window of opportunity: Black flight from Compton to the Inland Empire

Billy Ross, now 45, spent the 1980s and early ’90s growing up in Compton just as Johnson was relocating his family. “Compton was changing around us — and fast,” Ross says.

Homeownership did not shape up to be what Ross once thought — a promise to pass on wealth and security to his children.

Mayes, of the Fair Housing Council, says many homeowners in the Inland Empire are still reeling from the financial crisis. Others she remembers helping simply disappeared, she says.

Billy Ross considers himself one of the lucky few Black people who made it out, despite a system he thinks is designed to keep African Americans on the bottom.

Black homebuyers today pay an unequal price

The study also found that the higher the concentration of Black or Latinx residents in a neighborhood, the more Black or brown buyers in that neighborhood are overcharged.

This idea, of including Black Americans in the housing market but charging them more to do so, is part of what Princeton scholar Keeanga-Yamahtta Taylor calls “predatory inclusion.”

Alston plans to continue pushing for policy change that increases access to Black homeownership, all the while enhancing access through his own practice for people like DonnaLee Norrington.

It’s a legacy that remains out of reach for many Black Americans today.

CREDITS: Ailsa Chang / Christopher Intagliata / Jonaki Mehta/ NPR

The post Black Americans And The Racist Architecture Of Homeownership appeared first on National Association of Real Estate Brokers .

NAREB Urging Policy Makers to Upgrade Black Homeownership to Priority Status

Tue, 11 May 2021 04:35:00 GMT

National Association of Real Estate Brokers (NAREB) convenes 2021 Spring Policy Conference with specific policy recommendations that support the growth of Black Homeownership

Washington, DC – May 10, 2021 – Burdensome student loan debt, home appraisal bias, disparate mortgage lending pricing, historic discriminatory federal policies still adversely affecting the growth of Black homeownership, and the overarching societal effects of the pandemic are subjects of 2021 Spring Policy Conference to be convened by the National Association of Real Estate Brokers (NAREB) May 12-13, 2021 . This year’s sessions are framed by the conference theme, “Increasing Black Homeownership: Are Current Housing Public Policies a Boost or a Hindrance?”.

“NAREB is taking a deep dive into government policies, legislative initiatives as well as private sector lending practices that jeopardize the ability of Black Americans to purchase a home. Our goal is not merely to discuss, but to advance the NAREB agenda to Build Black Wealth through Homeownership. It takes consistent, focused advocacy and sharing with public officials how systemic impediments to homeownership can and should be eliminated,” said Lydia Pope, President-Elect, National Association of Real Estate Brokers (NAREB).

Confirmed elected and appointed officials scheduled to speak include: U.S. Senator Sherrod Brown (D-OH), Chair, Senate Banking, Housing and Urban Affairs Committee ; U.S. Congressman Al Green (D-TX); U.S. Congressman Steven Horsford (D-NV); U.S. Congresswoman Rashida Tlaib (D-MI); the Honorable Marcia L. Fudge, Secretary, U.S. Department of Housing and Urban Development (HUD), and Mark Calabria , Director, Federal Housing Finance Agency, and Bruce Dorpalen , Executive Director, National Housing Resource Center.

Among the noted housing policy experts and industry leaders speaking during the two-day conference are: William Michael Cunningham , economist, Creative Impact Research; Michela Zonta , Senior Policy Analyst, Housing Finance and Policy, Center for American Progress; Ron Busby , President/CEO, US Black Chambers, Inc.; Sasha Hewlett , Director, Secondary & Capital Markets/Residential Policy, Mortgage Bankers Association; Natalie Maderia Cofield, Asst. Administrator, Office of Women’s Business Ownership, U.S. Small Business Administration, and Dwight Alexander , Sr. Vice President, Director of Legislative and Regulatory Affairs, Federal Home Loan Bank of San Francisco.

Advocacy strategies are the threads connecting all of conference sessions. Whether regulatory or legislative obstacles interfering with the growth of Black homeowners, NAREB, along with its allies are prepared to push for proposals for change. Specifically, NAREB’s policy agenda includes: the establishment of a national down payment assistance fund; the reform and standardization of the payment calculation for school loans in mortgage underwriting for FHA, VA and the GSEs (Fannie Mae and Freddie Mac) financing, and the elimination of Loan Level Price Adjustments (LLPAs) and risk-based pricing.

As President-Elect Pope remarked, “the State of Housing in Black America, which we track every year requires our vigilance, transparency, and a focused action agenda to raise our current homeownership rate from 45.1% to be on par with the non-Hispanic White rate of 73.8%. Black homebuyers deserve the opportunity. Our communities will benefit and the nation will reaffirm its promise of the American Dream of homeownership for all of its citizens.”

To learn more about the 2021 NAREB Spring Policy Conference and to register, visit https://bit.ly/2021-virtual-spring-policy-conference

Media Contacts:

# # # # #

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

The post NAREB Urging Policy Makers to Upgrade Black Homeownership to Priority Status appeared first on National Association of Real Estate Brokers .

How COVID-19 magnified the ‘extreme disparities’ in housing between Black, white residents

Thu, 06 May 2021 17:58:00 GMT

The coronavirus pandemic has underscored housing disparities between Black and white people in Louisville, with Black residents more likely to face financial hardships that put them behind on rent, according to a report from the Metropolitan Housing Coalition .

The nonprofit agency, made up of more than 300 members, released its latest State of Metropolitan Housing Report on Tuesday, breaking down the struggles residents faced as they attempted to stay “healthy at home” over the last year.

According to the report, Black residents were more likely than white residents to experience layoffs, job losses and pay cuts through the pandemic, leading them to more often miss rent and utility payments.

Behind on rent?: How to get emergency assistance in Kentucky

People in predominantly Black areas were most likely to be evicted from their homes , despite moratoriums. And foreclosure sales in 2020 were concentrated in areas with larger populations of Black homeowners and renters, the report stated.

Government response to the pandemic and the ensuing economic downturn was “uneven, confusing and insufficient across the board,” the report added. And as the city continues to recover, officials must intentionally direct resources to people who need them most, the coalition says.

“We know we had extreme disparities in our community in terms of access to safe and affordable housing, and this pandemic has just magnified that,” said Cathy Kuhn, executive director of the coalition.

“So I think one of the takeaways from this report is that it’s going to be very, very critical that we are strategic in utilizing the unprecedented funding that has been coming into the city to address those disparities and make sure we’re targeting those resources to those who are most vulnerable, those who have the greatest level of need as it relates to housing.”

Since the start of the pandemic, Louisville has directed about $31 million in local and federal funds toward rent and utility assistance .

The city got a big boost in eviction prevention funding in February when it received $22.9 million through the COVID-19 Relief Act. And it stands to receive millions more through the American Rescue Plan Act — funding that will be used to provide emergency rental assistance, utility assistance and housing vouchers.

Black residents made up nearly 72% of those who received rent assistance through the end of March, according to city data.

Census estimates show 64% of Black households rent their homes, compared to 31% of white households.

Kuhn, who joined the coalition in October, said emergency rent assistance is critical for keeping families housed in the short-term. But government officials also need to invest in the construction of affordable housing to increase options for low-income residents and improve their chances for resiliency in the face of future crisis, she said.

“I do think Louisville has done a lot to try to begin to address these issues, but obviously much more needs to be done,” she said. “The recent budget put out by the mayor put a $10 million investment in the Affordable Housing Trust Fund. That’s basically level funding. That’s just not going to do it.

“We need to re-prioritize and make more significant investments in affordable housing.”

The coalition’s state of housing report offers a range of recommendations on how the city can increase affordable housing and reduce disparities, including:

► Legal representation for tenants — Establishing a “right to counsel” program would help balance power dynamics that inherently favor the landlord in eviction proceedings, the report states. After the report was already drafted, Metro Council members approved a pilot program that will offer free legal representation to low-income families facing eviction.

► Strengthen the rental registry — City officials should create, maintain and enforce a rental registry that can ensure compliance with housing codes as well as prevent unlawful evictions.

► Just cause eviction protections — City officials should enact “just cause” eviction policies that would provide greater protections for renters by limiting the grounds upon which a landlord may evict a tenant.

► Eviction expungement — State and local officials should enact laws that allow courts to order expungement of an eviction record. Many landlords will not rent to people who have an eviction filed against them, the report states.

► Require affordable housing in new developments — Louisville’s Land Development Code should require the development of affordable housing as a condition to the development of market-rate housing. City officials are working to revise the code in three phases that are expected to take up to two years.

► Build public and affordable housing — Local, state and federal governments should commit to making meaningful investments in the production of housing dedicated to people with the lowest incomes. At the state level, officials should establish a state affordable housing tax credit, and at the city level, officials should increase funding for existing programs and agencies, such as the Louisville Affordable Housing Trust Fund.

Background: Housing disparities run deep for Black Louisville residents

► Make home ownership more affordable — Private and public entities should support programs that help low-income families overcome wealth barriers and keep monthly mortgage payments low.

► Support community land trusts — Community land trusts provide meaningful opportunities for low-income people to build equity through homeownership, while also allowing communities to retain control of the properties. Louisville announced plans to establish a community land trust in two predominantly Black neighborhoods earlier this year.

► Focus interventions through a racial equity framework — Public and private entities should intentionally focus their housing intervention efforts around reducing racial and ethnic disparities.

To read the full report, visit metropolitanhousing.org/annual-reports .

Credit: Bailey Loosemore / Courier Journal

The post How COVID-19 magnified the ‘extreme disparities’ in housing between Black, white residents appeared first on National Association of Real Estate Brokers .

A new study shows anti-Black racism is costing American homeowners hundreds of thousands of dollars

Thu, 06 May 2021 13:00:00 GMT

Anti-Black racism in the housing market is hurting homeowners across the US.

Real estate company Clever collected data on home values across the US , looking at patterns across predominantly Black and white neighborhoods. The data shows that homes in majority Black neighborhoods are being massively undervalued, which has ripple effects across the larger US economy.

Clever’s data shows that, with each 1% increase in the proportion of Black residents in a zip code, home values decrease by approximately $2,581.

The racial wealth gap in America is huge — and is apparent in all sorts of financial data, from income to net worth to home equity. The study, conducted using data from Realtor.com and Zillow.com along with 2019 Census Bureau data, showed a massive disparity between the ability of Black and white Americans to buy homes, and see the values of their homes increase.

Black Americans pay more for homes, and Black neighborhoods are consistently undervalued

Despite anti-discrimination laws for housing and mortgages, Black Americans are still having a harder time getting mortgages than white Americans. Facing a lower average family net worth — a figure that’s scrutinized during the mortgage approval process — it can be harder for some Black Americans to get approved.

Black Americans also tend to pay more for their mortgages than white Americans. A 2015 study by the Journal of Real Estate Finance and Economics found that Black borrowers paid 0.29% more on a mortgage than a similar white family. Black women are typically charged 0.57% more than white women for a mortgage.

When Black Americans sell a home, those homes are often under-valued . Clever’s data found that the average home in predominantly Black metro areas has an average listing price of $167,508, while the typical home in a white neighborhood has an average listing price of $335,000. Price per square foot also reflects this disparity — Black neighborhoods see a median price per square foot of $115, while homes in white neighborhoods have a median of $193.

The racial wealth and homeownership gaps cost everyone

Closing the racial wealth gap would be benefit everyone in the US. Indeed, over the past 20 years, the racial wealth gap has cost the US $16 trillion .

Home equity plays a large role in every family’s wealth. Clever’s data points out that every 10% increase in home equity and wealth in housing creates $147 billion in spending — and that’s no small amount as the country recovers from one of the worst economic disasters in years caused by the coronavirus pandemic.

Many Americans derive a large portion of their net worth from their home — on average, home equity is 28.9% of a family’s net worth, according to Census Bureau data. The affordability and value issues that perpetuate the racial homeownership gap also play a big part in the racial wealth gap.

Closing that gap could help benefit the country, and the housing market, as a whole.

Credits: Liz Knueven / Business Insider

The post A new study shows anti-Black racism is costing American homeowners hundreds of thousands of dollars appeared first on National Association of Real Estate Brokers .

ARE MILLENNIALS SO DIFFERENT FROM THE GENERATIONS BEFORE THEM?

Wed, 05 May 2021 19:27:00 GMT

With all the buzz surrounding millennials and their choices, it is tough to separate myth from reality. Often, myths have been promoted without careful consideration of the difference between age and generation. Some have compared millennials to baby boomers, although they are in different stages of life. Others assume that the struggles of millennials during financial crisis would persist over time.

I examine these issues in “ Are Millennials Leaving Town? Reconciling Peak Millennials and Youthification Hypotheses ,” a paper published earlier this year in the International Journal of Urban Sciences which examines how millennials are faring compared to previous generations at the same ages. Building on earlier work published when I was a postdoctoral fellow at the Center, I find that millennials, on average, delayed their transition into adulthood as compared to older generations, consistent with popular portrayals, but they have begun to catch up in recent years, with rising incomes and as they move from multifamily apartments to single-family homes.

For the analysis, I used the 1962–2019 IPUMS Current Population Survey (IPUMS-CPS) microdata and selected five birth-year cohorts to represent their respective generations: 1950 (early baby boomers born 1946–1955), 1960 (late baby boomers, 1956–1965), 1973 (Generation X, 1966–1980), 1985 (early millennials, 1981–1990), and 1995 (late millennials, 1991–2000). In the paper, I analyze various aspects of their life-course trajectories. In this first of two blogs based on the paper, I report on four notable findings: marital status, homeownership, personal income, and multifamily residence share. (In the paper, household formation and educational attainment were analyzed as well.)

Given that multifamily rental units are predominantly built in urban areas , the changes in millennial homeownership and multifamily residence might hint where millennials are heading. Indeed, another finding of this paper was that millennials started to move out of urban centers to suburbs. However, while some might suspect this would result in urban decline, or even urban exodus, my next blog post will explain why the demand for urban living is not going anywhere.

Source: Authors’ analysis based on the 1962–2019 Integrated Public Use Microdata Series, Current Population Survey: Version 7.0.

Note: Early/Late B = Early/Late Boomers; Early/Late M = Early/Late Millennials. All figures are computed using three-year moving averages to avoid yearly fluctuations. All dollars are adjusted to 2019 dollars.

Credits: HYOJUNG LEE / The Harvard Joint Center for Housing Studies

The post ARE MILLENNIALS SO DIFFERENT FROM THE GENERATIONS BEFORE THEM? appeared first on National Association of Real Estate Brokers .

In a hyper-competitive market, how to find a real estate agent who won’t let you down

Wed, 05 May 2021 19:12:00 GMT

In this c ompetitive housing market it’s more important than ever to work with a real estate agent who can advocate for your priorities and steer you toward the right properties.

Competition among buyers means sales are moving quickly, and having a professional by your side who can help you make the best offer to beat out your competitors can be crucial.

Why work with a real estate agent?

With many buyers scrambling for a limited number of homes , a real estate agent can help your offer get the edge.

“I think it’s very important. It just streamlines the process,” said Ashley Thomas III, second vice president at the National Association of Real Estate Brokers (NAREB). “It allows you to accomplish the goal much quicker when you’re on the same page as your agent.”

It’s important when looking for an agent to find one with experience in the area where you’re looking to buy, because their familiarity with a market can help you make a better, more informed offer.

Thomas advised that both buyers and sellers should find an agent whose style, schedule and expertise all align with their goals.

“Availability is so important. If you can only see properties on Sundays and Sundays are not good for that agent, that’s going to be a conflict down the road,” he said “There are some who have an expertise in negotiations and contracts, and there are other agents who might be more into interior design. Just aligning your goals with what you’re looking for is so important.”

How can you find one?

Your search for a real estate agent should probably start with your friends.

“Around 90 percent of recent homebuyers and home sellers were satisfied with their service. Most would recommend their Realtor to friends and colleagues,” said Lawrence Yun, chief economist at the National Association of Realtors. “Likewise, they find Realtors through friends and colleagues.”

Thomas agreed.

“Start with your circle of influence: friends, family coworkers, people who have used real estate agents prior,” he said.

Both Yun and Thomas emphasized that buyers and sellers should consider multiple candidates before choosing an agent.

“Be cautious of the first contact from a website or purely from smooth talk. A home purchase is a major expenditure,” Yun said. “Buyers and sellers should find a person they can trust to serve the best long term interest through recommendations.”

And Thomas added that keeping the lines of communication open throughout the buying or selling process is crucial.

“If it’s not going the way you had envisioned, it’s very important to communicate that and talk about an exit strategy for how to move on,” he said.

How do you know if your agent is reputable?

This is where tapping your network will pay dividends. Working with an agent who you’ve gotten a personal recommendation for is a good way to ensure they’re nice to work with.

On top of that, Thomas said, it’s important to do your due diligence.

“We all have a license number that’s attached to us. If there ever was an issue those complaints are all public record,” he said. “Take your time and read through the disclosures, I think that’s probably one of the number one pitfalls. People rush through and sign, sign, sign.”

And if you feel like something is off , remember that you are your own best advocate.

“This is a service industry, we service the client,” Thomas said. “It’s important that the consumer remembers that this is their purchase and their opinion is what matters the most.”

So, don’t let an unscrupulous agent bully you into shifting your priorities or blowing up your budget.

Buyer’s vs. seller’s agent

People on both sides of a real estate transaction are usually well-served by working with an agent, but a seller’s agent — often called a listing agent — has different responsibilities than a buyer’s agent. As a buyer, remember your agent is your friend, but the listing agent is only there to get the best deal for the seller. You don’t want to talk to the listing agent about your budget. Here are some of the key differences between the two:

Listing agent

Buyer’s agent

Some states also allow for dual agency, where the same agent represents both buyer and seller, but that arrangement is not very common.

Bottom line

Buying a home can be overwhelming, especially in this ultra-competitive market. Finding a real estate agent who is good to work with and aligned with your goals can make the process a little bit smoother.

Learn more:

Credit: Zach Wichter / Bankrate

The post In a hyper-competitive market, how to find a real estate agent who won’t let you down appeared first on National Association of Real Estate Brokers .

NAREB’s Lydia Pope Talks Fair Housing And The Fight For Equality

Tue, 04 May 2021 13:43:00 GMT

The post NAREB’s Lydia Pope Talks Fair Housing And The Fight For Equality appeared first on National Association of Real Estate Brokers .

Why Black Neighborhoods Continue to Struggle

Mon, 03 May 2021 13:56:00 GMT

Twenty years ago, hundreds of Black neighborhoods in major cities were in good shape financially. Even before the pandemic, however, a majority had slipped into poverty.

Cleveland had more than 900,000 residents in 1950, but by the year 2000 its population had fallen below 500,000. The city still had some areas of relative strength, however, including a large supply of stable, primarily Black middle-class neighborhoods.

That’s all changed. Over the past 20 years, most of those neighborhoods have fallen into poverty. Back in 2005, 307 families bought homes in Cleveland’s 16 predominantly Black middle-class neighborhoods. By 2018, the number had fallen by three-fourths, with more than half of the 73 home purchases happening in just one neighborhood. Five out of the 16 neighborhoods didn’t attract a single buyer at all.

The lack of home buyers in once-desirable Black neighborhoods has created “a crisis of non-replacement,” says Alan Mallach, a senior fellow at the Center for Community Progress. It also leads, almost inevitably, to a vicious cycle, sending those neighborhoods into further decline. “The more poverty increases, the more the remaining middle-class homeowners are going to leave, and fewer middle-class buyers are going to be coming in,” he says.

Mallach has written a study looking at the fortunes of Black middle-class neighborhoods in six large cities – Baltimore, Chicago, Detroit, Milwaukee and Philadelphia, along with Cleveland. What he found was disturbing.

Mallach examined more than 300 neighborhoods – all with healthy median incomes in 2000 – and found that a large majority had slipped into poverty by 2018. Fortunes improved in only a handful of neighborhoods; gentrification was barely a factor. In nearly all the neighborhoods, homeownership was down, while vacancy and poverty rates were up.

While a great deal of attention has been paid to the struggles of Black Americans, there’s been less focus on the health of the places where they live. Neighborhoods are more than a collection of people, Mallach notes. They represent both fixed assets, such as homes, businesses and schools, as well as less tangible assets such as civic and cultural engagement.

That’s why so-called middle neighborhoods – areas not vibrant enough to attract much private investment, but not impoverished enough to receive direct government intervention – are starting to get more attention. For good, or often for ill, the ZIP codes where people grow up determine their trajectory throughout their entire lives. A widely cited 2017 study of 7 million families found that the neighborhoods where children grow up heavily shape their future earnings, college attendance rates and fertility and marriage patterns.

“Black middle neighborhoods matter because 70 percent of Black people live in Black neighborhoods,” says Nedra Sims Fears, executive director of the Greater Chatham Initiative, a nonprofit that invests in several Black neighborhoods in Chicago’s South Side.

Fears notes that in her neighborhoods, homes sell for $100 to $110 per square foot, compared to $300 per square foot in Chicago’s white communities. “I’m missing two-thirds,” she says.

Discrimination in real estate, including lending and appraising , has been well-documented. Homes in predominantly Black neighborhoods are undervalued by $156 billion nationwide, according to the Brookings Institution .

Racism is part of the story about the decline of Black neighborhoods, but it’s not the whole story. As Mallach notes, structural racism has been a part of the American story since the first slave ship arrived.

Something new has occurred over the past 20 years to drive once-stable neighborhoods into poverty. If policymakers are serious about addressing equity, they need to figure out those forces.

And they need to do something about them. Reversing the fortunes of neighborhoods facing downward pressures won’t be easy, but it’s a lot cheaper than waiting to address their issues once they’re mired in poverty.

Falling Further Behind

Mallach looked at predominantly Black neighborhoods where median incomes fell between 65 and 125 percent of the national median income. In all six cities, median household income declined in Black middle neighborhoods, in constant dollars, by double-digit percentages between 2000 and 2018 – and by as much as 41 percent in both Cleveland and Detroit.

In cities where white middle neighborhoods declined, Black neighborhoods declined more. Where white neighborhoods prospered, Black neighborhoods did not share in that prosperity. “While the severity of the decline varied from city to city, every city’s African American neighborhoods showed a decline in every indicator greater than the national rate of change over the same period,” Mallach writes.

These neighborhoods have been buffeted by major macroeconomic trends since 2000. Deindustrialization has robbed many Black city-dwellers of once-secure career paths. ( Union membership remains higher among Black workers than those belonging to other racial and ethnic groups). Black men continue to suffer the highest rates of unemployment of any racial and gender grouping.

“When those middle-class manufacturing jobs went, that broke the back of the Black middle neighborhood,” says Fears. “Now Black women are the mainstay. They’re paid 62 percent of what Black men make.”

Perversely, high rates of homeownership in middle neighborhoods made them primary targets for predatory lending during the early 2000s. “We shouldn’t take lightly what happens when a neighborhood is specifically targeted,” says Cherelle Parker, majority leader of the Philadelphia City Council. “Subprime lending, reverse mortgages – every tool possible to extract equity out of the communities.”

The Problem of ‘Black Flight’

Parker’s district is made up largely of Black middle neighborhoods. She notes they were aspirational destinations decades ago for people newly able to afford the switch from renting to owning. “People moved on up like the Jeffersons in the 1960s and 1970s,” she says, referring to a 1970s sitcom. “I’m proud to say these parts of my district have the highest homeownership rates in the city overall.”

But Black homeowners these days often want to move to different kinds of places. Many of them are opting to leave cities for the suburbs. The share of Black populations within metropolitan areas living in suburbs rose from 37 percent in 1990 to 51 percent in 2010. Suburbs have only grown more diverse over the past decade. Where white flight contributed mightily to the decline of center cities in the 1960s and 1970s, “Black flight” is a problem today.

Black people are also moving South. The Great Migration to the North during the first half of the 20th century has reversed. The 2010 census was the first in decades to show a majority of Black Americans living in the South. Cities such as Atlanta, Charlotte and Dallas have seen enormous gains in Black population, while northern cities have been hemorrhaging. Since peaking in 1980 at 1.2 million, Chicago’s Black population had shrunk to 800,000 by 2017.

All of this leaves Black neighborhoods in Northern cities with fewer potential buyers. As Mallach notes, white homebuyers are unlikely even to look in predominantly Black neighborhoods, let alone move in. Black homebuyers, by contrast, generally may consider not only predominantly Black neighborhoods, but mixed-race and mostly white areas as well. That means Black neighborhoods don’t see the benefit when there’s an increase in demand among white homeowners, who represent the biggest market, while having to compete for the relatively small share of Black purchasers.

The upshot is that there simply aren’t enough buyers when Black homeowners want to sell. Sometimes they have to settle for a lowball offer from an absentee investor. More often than not, in Mallach’s neighborhoods, they can’t find a buyer at all. In either case, their home may well sit vacant after they move out, dragging down their old neighborhood.

From 2000 to 2018, according to Mallach, homeownership in Cleveland’s Black middle neighborhoods declined by 30 percent, while the vacancy rate rose above 20 percent. The median sales price in 2018 was under $40,000 – less than half of what it had been back in 2005.

The number of homeowners in Black middle neighborhoods, meanwhile, dropped by 6,000 in both Baltimore and Philadelphia. The number dropped by 16,000 in Chicago. In Detroit, it fell by 32,000.

“Heirs are beginning to look at the homes not as an asset but a liability,” says Parker, the Philadelphia council member.

What Are the Solutions?

Since Mallach’s study ended in 2018, he couldn’t take into account the effects of the pandemic and the resulting recession, both of which took their greatest tolls on communities of color.

“Researchers on our team did an analysis of how African American-owned businesses fared in the pandemic,” says David Erickson, senior vice president of the Federal Reserve Bank of New York. “They found that in areas of concentration where there are many Black-owned businesses, there was more financial stress on those businesses, and they were less likely, on average, to receive benefits from the relief efforts.”

Numerous cities have offered help to businesses seeking Paycheck Protection Program (PPP) funds or other federal assistance over the past year – and to make more of them aware of the aid that’s available. The economy is improving, but many policymakers are concerned about how Black and other middle and low-income neighborhoods will fare, once the various foreclosure and eviction moratoria eventually expire.

“When those turn off, what we’re probably going to see is significant foreclosure activity – probably in the same areas you’re defining as middle neighborhoods, where homeownership is weak,” says Denise Scott, executive vice president at the Local Initiatives Support Corporation.

For decades now, local and federal policymakers have concerned themselves with housing, but rarely the shape of entire neighborhoods. That might be starting to change.

A bill in Congress, known as the Restoring Communities Left Behind Act , would create a new competitive grant program to support community-based partnerships addressing housing and the whole gamut of redevelopment. Another bill, known as the Neighborhood Homes Investment Act , would create a tax credit to make developers whole when there is a gap between their costs and the value of homes. Both ideas have been included in broader proposals from President Biden and both have bipartisan support in Congress.

In Philadelphia, Parker has succeeded in getting funding to help middle neighborhood residents rehab their homes. They’re often turned down by private lenders, yet don’t qualify for many government assistance programs. “There has never been an intergovernmental approach to try to sustain or preserve the housing stock in these communities,” she says. “They make a nickel over the income eligibility for programs to improve homes.”

There are other scattered success stories around the country. In Baltimore, a nonprofit called ReBUILD Metro has leveraged $100 million to rehab 500 homes, driving down vacancy rates in two formerly blighted neighborhoods by upward of 75 percent. DeSales Community Development Corp., a St. Louis nonprofit, has helped stabilize a neighborhood known as Fox Park through investment in hundreds of low-income housing units. It’s now a desirable market, with more people coming in to buy and occupy properties on formerly decrepit streets.

“No private developer in their right mind was going to go into that block,” says Thomas Pickel, DeSales’ executive director, referring to the group’s first rehab project. “If anybody was going to get that investment pipeline flowing again, we were going to have to do it and figure out how to do it.”

There’s no single solution that will work for every struggling neighborhood. Few will pursue the exact same formula for sprucing up and marketing areas that are on the cusp between growth and decline.

But seemingly simple steps can pay major dividends over time, making neighborhoods healthier for residents and more appealing to newcomers. Given the headwinds against middle neighborhoods in general and Black middle neighborhoods in particular, it’s an investment that might be well worth making.

“With some strategic, smart intervention and investment, they can be stabilized and improved,” Pickel says. “It’s going to be more economical to address neighborhoods at that stage, before you get to the point of massive clearance and redevelopment.”

Credits: Alan Greenblatt / Governing

The post Why Black Neighborhoods Continue to Struggle appeared first on National Association of Real Estate Brokers .

Statement By President-Elect Lydia Pope on the Release of 1st Quarter 2021 Black Homeownership Rate

Fri, 30 Apr 2021 20:48:00 GMT

Washington, DC – April 28, 2021 – The National Association of Black Real Estate Brokers (NAREB) cautiously accepted the 1% increase of the Black homeownership rate as issued by the U.S. Census Bureau in its first-quarter 2021 report. The 45% rate, up from the fourth quarter 2020 rate of 44.1% comes at a time when Blacks were more impacted by the negative health and economic consequences of the pandemic.

From a historic vantage point, Black homeownership continues to lag nearly 30 percentage points behind the first quarter 2021 non-Hispanic White homeownership rate of 73.8%, reflecting decades-old disparities serving to repress the expansion of Black homeownership and wealth creation.

While relieved that the measured homeownership rate did not retreat, I am mindful of continued high unemployment rates among Black Americans, skyrocketing home prices, low housing stock inventories, uneven lending practices, and the ever-present student debt burden as factors that adversely affect the growth of Black homeownership. There are variations in real estate markets at a local level and therefore some may be experiencing brisk activity despite the continuing national economic downturn.

NAREB remains committed to expanding opportunities for Black Americans to purchase a home of their choice. The association’s multi-pronged approach includes a focused advocacy strategy designed to support legislative measures like the American Dream Down Payment Act along with initiatives that reduce burdensome student debt preventing GenX-ers and Millennials from becoming homeowners. In addition, NAREB continues to help Black consumers learn about the wealth-building aspects of homeownership and the importance of financial preparedness even in the face of these uncertain economic times.

The post Statement By President-Elect Lydia Pope on the Release of 1st Quarter 2021 Black Homeownership Rate appeared first on National Association of Real Estate Brokers .

Trump gutted Obama-era housing discrimination rules. Biden’s bringing them back.

Thu, 29 Apr 2021 20:40:00 GMT

The post Trump gutted Obama-era housing discrimination rules. Biden’s bringing them back. appeared first on National Association of Real Estate Brokers .

Housing Gains Could Grow Black Wealth More Than $500 Billion in a Decade

Tue, 27 Apr 2021 17:55:00 GMT

Incremental increases in homeownership rates and home values among Black households would help shrink the current $3 trillion racial wealth gap by hundreds of billions of dollars over the next decade, according to a new Zillow analysis .

Today’s typical Black household has only about 23% of the wealth of a typical white household, down from 34.6% before the Great Recession. Housing factors — including lower home values and rates of homeownership — directly account for nearly 40% ² of that gap, with assets like investments in stocks and bonds and retirement accounts making up the rest.

“Housing will be a prominent factor determining the course of the racial wealth gap over the next decade,” says Zillow economist Treh Manhertz. “The issues caused by historic discrimination won’t be solved quickly, but addressing things like increasing access to credit, more-equitable lending standards and reducing exclusionary zoning could make buying more accessible and bring significant strides toward closing the wealth gap. In the most optimistic scenario, Black millennials could see housing equality in their retirement, and finally pass on some real wealth to the next generation.”

About 42% of Black households own their home, compared to 72% of white households, and Black-owned homes are typically worth about 18% less than white-owned homes. Zillow estimates that if Black homeownership rates and home values rose to match those of their white counterparts, Black wealth would more than double (from $931 billion to $2.1 trillion ).

Zillow analyzed home value growth and homeownership rate changes for Black households under five different scenarios through 2031. In the most optimistic, Black wealth would grow by more than half a trillion dollars — from $931 billion to $1.46 trillion . In the most likely, it would increase to about $1.18 trillion .

In that most likely scenario — which projects Black home values growing 5% faster than home values generally and Black homeownership growing at 0.5 percentage points per year — equality in housing wealth wouldn’t come until 2183. If Black home values grow 15% faster than home values generally and Black homeownership grows at 1.5 percentage points per year — the most optimistic scenario explored in the analysis — the timeline for housing wealth equality is moved up to 2066.

Opposite of the disproportionate hit taken during the Great Recession , Black households saw modest progress in narrowing the wealth gap during and leading up to the pandemic, a small start toward reversing trends that helped widened the gap over the past decade. This was largely due to housing gains. For example, the Black homeownership rate grew about one percentage point between early 2019 and early 2020, while the white homeownership rate stayed flat.

Black-owned home values have also grown just over one percentage point faster than white-owned home values each year for the last three years. In February 2020 , Black-owned home values were up 4.6% from a year earlier, while white home values were up 3.6%. In February 2021 , Black home values were up 10.9% from the previous year, while white home values were up 9.7%. This faster appreciation among Black-owned homes narrowed the overall home value gap from 16.7% to 15.9%.

Further, the analysis shows that Black homeownership rates and home values contribute equally to the housing portion of the overall wealth gap. If the Black homeownership rate increased by five percentage points the wealth gap would decrease by $74 billion . If home values increased by five percentage points the reduction would be $31 billion . Combined, alleviating these two disparities could cut the wealth gap by about 40%, to $1.9 trillion .

Lenders deny mortgages for Black applicants at a rate 80% higher than that of white applicants. The relationship between housing factors and the racial wealth gap underscores the urgency of efforts like expanding access to credit and other initiatives that break down color barriers to homeownership.

“It’s abundantly clear that this issue won’t solve itself naturally or quickly. The problems run deep and perpetuate inequality,” said Manhertz. “Intentional, targeted and dedicated policy is necessary to repair this broken system.”

CREDITS: SAVOYSTAFF/ Savoy

The post Housing Gains Could Grow Black Wealth More Than $500 Billion in a Decade appeared first on National Association of Real Estate Brokers .

The Black Homeownership Gap Is Larger Than It Was 60 Years Ago. COVID-19 Made It Worse

Mon, 26 Apr 2021 16:15:00 GMT

The gap in homeownership rates between Black and White Americans grew to over 30% last year — which is higher than what it was in 1960, when racial discrimination in housing was legal.

The fact that the Black homeownership gap has persisted since the passing of the 1968 Fair Housing Act, which outlawed housing discrimination, is evidence of how much more needs to be done to address the issue. “Fair housing by itself just won’t do it. Equal’s not equal if I give you a 300-year head start,” says Mark Alston , public affairs committee chair of the National Association of Real Estate Brokers (NAREB) Public Affairs committee chair.

This gap was created, and is maintained, by a history of racial injustice specifically targeting Black communities. It has been driven by, and has exacerbated, inequalities in wealth, income, and access to credit, among other things. To add to the challenges facing potential Black homeowners, COVID-19 has disproportionately affected Black communities .

Some of the pandemic’s impact may be felt by these communities for years to come. “African Americans and minorities have lost their jobs at greater rates during COVID, so the idea of purchasing a home is probably being pushed even longer off,” says Dr. Jessica Lautz , vice president of demographics and behavioral insights at the National Association of Realtors (NAR).

Unwinding centuries of racist policies won’t be achieved overnight, but there are advocates working to close the gap. And there are policy and behavioral changes that can get us moving in the right direction.

What Is Driving the Black Homeownership Gap?

The Black homeownership gap is the difference in homeownership rates between Black Americans and White Americans. As of the end of 2020, 44.1%% of Black Americans own their homes, according to the U.S. Census Bureau, compared with 74.5% of White Americans. The Black-White homeownership gap has changed little over the past 100 years, consistently staying between 20% to 30%, according to the National Community Reinvestment Coalition .

While it’s impossible to quantify the factors behind this gap, researchers have highlighted several areas including income, wealth, lending practices, credit scores, and student loan debt. Choose the best bonuses and Adjarabet am slot on the online Armenian platform

Income and wealth

The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth. A primary residence accounts for the largest percentage of the average American household’s net worth, according to the Latest Federal Reserve Survey of Consumer Finances .

Adding to the problem is that Black-owned houses are typically worth less and are more likely to lose value than White-owned homes in similar neighborhoods.

Mortgage denials and higher interest rates

Nearly 9 out of 10 homes are purchased with some type of financing . Among homebuyers last year, African Americans were 2.5 times more likely to be rejected for a home loan than White borrowers, according to NAR. And those numbers don’t include people who never ended up purchasing a home. “The eye-opening part of that stat is that those are the successful homebuyers,” Lautz says.

Black homeowners also pay higher interest rates for home loans than White homeowners, according to a report by the Joint Center for Housing Studies of Harvard University. In fact, Black homeowners with higher incomes still have higher mortgage rates than White households with a significantly lower income, the report found.

Student loan debt

Compared to a White household, a Black household is twice as likely to have student loan debt, NAR found, and their median student loan balance is $10,000 higher.

Any debt can be a big hurdle to homeownership, because it limits how much house you can afford. But student loan debt comes with a different set of challenges because the way it affects your debt-to-income ratio (DTI) varies by mortgage type.

Depending on the type of mortgage you’re applying for, an extra $10,000 in student loan debt would add $50 to $100 to your monthly DTI calculation. It is less likely you’ll be approved for the loan, and could reduce your buying power by tens of thousands of dollars.

Credit Score

The Urban Institute found that areas where Black households have higher credit scores have a smaller Black-White homeownership gap. According to its report , the difference in Black and White household credit scores accounts for 22% of the homeownership gap.

Your credit score has a big impact on your mortgage rate and ultimately how expensive it is to borrow money for a home purchase. The minimum credit score you need to get a house varies by lender, but is typically in the 580-620 range, but the best rates go to those with scores over 740. Just over 20% of Black households have a credit score over 700, but over half of white households have a credit score that high, according to the Urban Institute.

How Has COVID-19 Affected Black Homeownership Rates?

According to the latest U.S. Census Bureau survey , the Black homeownership rate for the fourth quarter of 2020 was 44.1%, nearly the same as its pre-pandemic level. Over the same time period, White homeownership rates increased by 0.8%.

While it looks like the pandemic has only marginally increased the Black homeownership gap, we might not know the full impact until more data is available. “Typically, data runs a year behind. It’s very difficult to make an assessment of the pandemic’s effects today,” Alston says.

During the height of the shutdowns, the Census Bureau adjusted how it collects survey data because it could no longer go door to door. “Because of the methodology change what you’ll see is, unfortunately, an artificial inflation of the homeownership rate in the middle of 2020 for everyone,” Lautz says. “The latest quarter shows that falling back down, but it’s not really falling back down, it was just an artificial inflation because of the methodology change.”

As we wait for more clear data, here’s what we do know.

People of color were more likely to lose their job because of the pandemic and recession. And women were more likely to lose their job or voluntarily leave the workforce to care for family members. The number of women leaving the workforce is likely to have a bigger effect on Black homeownership levels because a larger percentage of Black households are headed by women .

What Can Increase the Black Homeownership Rate?

Combatting a long history of discriminatory housing practices will take the effort of many individuals and organizations. And thankfully, there are people already on the front lines advocating for policy changes and providing support to Black communities.

Legislators in some states and the Federal government are working to put laws in place to combat the ongoing discrimination Black homebuyers and owners face. New Jersey Assemblywoman Angela V. McKnight, for instance, has introduced a bill that would allow for more severe consequences for discriminatory practices in the home appraisal industry. And recently, several members of Congress created a bill aimed at helping Black and brown families save up to buy a home through a tax-exempt savings account.

There are also those who are educating and connecting Black homebuyers with the resources they need. Lisa Phillips is a real estate investor who is teaching other Black professionals the value of investing back into their communities. Others, like Yemi Rose, are helping through financial education. He is the founder of OfColor , a financial wellness platform aimed at helping companies support employees of color.

While there is a long road ahead, and no single solution to unraveling centuries of racist housing policies, we can take steps in the right direction. Over time the combined efforts of individuals and policy changes can increase Black homeownership rates.

Credits: Jason Stauffer / Time

The post The Black Homeownership Gap Is Larger Than It Was 60 Years Ago. COVID-19 Made It Worse appeared first on National Association of Real Estate Brokers .

$22,000 grants for home buying offered amid Sacramento housing scarcity

Thu, 22 Apr 2021 20:38:00 GMT

Some financial help was much needed as Sacramento housing prices soared amid a seller’s market, even with a pandemic in the mix.

SACRAMENTO, Calif. — The Sacramento Housing and Redevelopment Agency (SHRA) wants people to buy a house in the city, and to sweeten the deal, offered grants of up to $22,000 for down payments and closing costs.

The post $22,000 grants for home buying offered amid Sacramento housing scarcity appeared first on National Association of Real Estate Brokers .

Instead of rental vouchers, give people a shot at owning a home

Mon, 19 Apr 2021 13:44:00 GMT

President Biden has consistently stressed the need to address the racial inequity that plagues America. Nowhere is this inequity more pronounced than the wealth gap. The typical Black family has one-eighth of the net worth of white households. Latinos have less than a fifth.

Yet most of the $640-billion housing plan Biden proposed during the campaign will do nothing to help close the wealth gap. That’s because he’s following the same well-worn path walked by so many well-intentioned housing advocates before him. His housing plan is focused on rental housing, including the construction of more subsidized apartments and tripling the availability of rent vouchers, which pay landlords a portion of the monthly rent so tenants pay less.

Instead, Biden and his people should focus more on helping people buy a home — a less costly approach than one might think and in many ways less expensive than most rental programs.

To Biden’s credit, his plan did include a homeownership component: a $15,000 tax credit for first-time home buyers. The administration has suggested that this credit could be advanced so it would be usable at the time of purchase, but there are no details and it’s not clear how that would work.

There is a simpler way to increase access to homeownership: a homeownership voucher.

Homeownership’s importance to wealth building is well understood. For the majority of Americans, their wealth is held in their homes. A 2015 report released by Brandeis University’s Institute for Assets & Social Policy shows that the homeownership gap is the most significant driver of the racial wealth gap and more significant than unequal incomes and access to higher education. The Black-white homeownership gap is worse today than it was in 1968, the year the Fair Housing Act was passed, yet America spends little to help increase homeownership among those who have been left behind.

The only significant federal program that specifically helps lower-income households purchase their first home is the FHA mortgage insurance program, with a current annual budget of about $3 billion. We spend 13 times that amount — $39 billion a year — on rent vouchers.

But rent vouchers, though an important social safety net, can get expensive; the average beneficiary uses it for six years and the average monthly subsidy is $768, which adds up to about $55,000. Yet rent vouchers accomplish nothing for people who want to own their own housing and avoid having a landlord and annual rent increases.

A homeownership voucher program would help people of color and low-income households raise a down payment sufficient to get an affordable, safe mortgage — and get a jump-start in building equity. In the long-run, it would be less expensive than paying a portion of someone’s rent, month after month, for years on end.

Homeownership vouchers could have a major impact. A one-time national investment of $39 billion (the same amount spent annually on rent vouchers) could provide a $15,000 voucher to 2.6 million new home buyers — a population large enough to increase the Black homeownership rate from 42% to around 60%, substantially narrowing the Black-white homeownership gap.

While $15,000 may not be enough to help a home buyer in expensive housing markets on the coasts, it would work in most parts of the country where housing costs are lower. And this amount could be adjusted for higher-priced markets, just as rent vouchers are.

My nonprofit organization, Homewise, has operated a local version of this idea in New Mexico for years and has helped thousands of new buyers with down payment assistance, from modestly-priced Albuquerque to high-cost Santa Fe.

Some caution is warranted here. As shown during the mortgage lending crisis, making home loans available without regard to the borrower’s ability to make the payments can cause real damage. But when home buyer assistance is provided together with education and coaching that help buyers reduce consumer debt, improve their credit and build a savings habit, these buyers can be successful over the long term and able to weather the curveballs life can throw. For example, the over-30-day delinquency rate of homeowners assisted by Homewise is less than 2.5% — much lower than home buyers who did not benefit from the same kind of support.

What is needed is a network of organizations with a track record of serving communities of color — organizations that can help individual home buyers address specific barriers to buying a home. The good news is that hundreds of these organizations already exist, whether community development financial institutions, state housing finance agencies or affordable housing nonprofit groups.

A homeownership voucher is no silver bullet. But if used right, it can lower the barriers that prevent many rent-paying Americans from buying a home and building equity in an asset. Only then will we begin to level the playing field for all.

Mike Loftin, a visiting fellow at the Urban Institute, is chief executive of the nonprofit organization Homewise.

The post Instead of rental vouchers, give people a shot at owning a home appeared first on National Association of Real Estate Brokers .

Biden’s $1.5 trillion budget calls for big investment in HUD

Tue, 13 Apr 2021 20:43:00 GMT

President Joe Biden’s $1.5 trillion discretionary funding request includes a 15% budget increase for the Department of Housing and Urban Development (HUD) to combat homelessness, retrofit rental housing and increase the supply of affordable housing. But housing industry insiders tell HousingWire that the proposed budget looks unlikely to be passed as currently configured.

In a letter sent to lawmakers on Friday, the Biden administration asked for an additional $9 billion to be allocated to the federal housing agency. If Congress were to rubber-stamp the request, it would put HUD’s budget at $68.7 billion for fiscal year 2022.

The request for HUD, led by Secretary Marcia Fudge , includes a $5.4 billion expansion of housing vouchers to cover 200,000 additional families. Homeless assistance grants would be increased by $500 million, to support 100,000 additional households, including homeless youth and victims of domestic violence.

The budget includes an increase of $435 million in modernization grants for public housing — although the nation’s largest public housing system, the New York City Housing Authority , currently has a $40 billion budget shortfall . Another $800 million would go toward investments in energy efficiency and climate change resilience across HUD’s portfolio of 2.3 million low-income rental properties.

The president’s request would send an additional $500 million to a federal block grant program, the HOME Investment Partnerships Program , which creates housing for low-income households. The funds would be used to construct and rehabilitate affordable rental housing. An additional $180 million would be used to create affordable housing for seniors and persons with disabilities.

The expiration of restrictive federal spending limits, which stem from the 2011 Budget Control Act, presents a “unique opportunity” to reverse the last decade’s trend of disinvestment in non-defense funding, according to a letter to lawmakers Office of Management and Budget Director Shalanda Young.

“Over the past decade, due in large measure to overly restrictive budget caps, the nation significantly underinvested in core public services, benefits, and protections,” Young wrote.

The outlined budget increases are a starting point for negotiations in Congress. But as lawmakers determine how much federal funding to provide to federal agencies, the proposals are likely to go through changes as lawmakers take up the issues.

According to a federal lobbyist for the housing industry who spoke to HousingWire on Monday, there’s “no assurance” this budget would be passed as-is, and will likely be downsized in order to garner bipartisan support.

Vermont Sen. Bernie Sanders, who chairs the Senate Budget Committee, praised the increases in funding for education, health care, environmental protection and affordable housing through HUD.

“At a time when over half of our people are living paycheck to paycheck, and millions of elderly people are experiencing poverty, this budget goes a long way in providing the help that so many Americans desperately need,” said Sanders in a statement.

Senate Republicans have already taken issue with the relatively modest increase in defense spending — $753 billion, a 1.7 percent increase — compared with funding for social services. In order to pass, any federal funding agreement would require the support of at least 10 Senate Republicans.

In a joint statement, Florida Sen. Marco Rubio, Kentucky Sen. Mitch McConnell, Oklahoma Sen. Jim Inhofe, South Carolina Sen. Lindsey Graham and Alabama Sen. Richard Shelby condemned Biden’s proposed budget as “liberal wish list priorities.”

“President Biden has said much about reaching across the aisle,” the statement read. “Both parties should be able to agree that we must maintain America’s edge over China. We urge President Biden to work with us in a bipartisan manner to ensure that.”

Lawmakers have a little less than six months to pass a budget before Oct. 1, the beginning of fiscal year 2022.

In his first six months in office, the Biden administration has taken more interest in housing – specifically, affordable housing – than most administrations in recent history. Separate to his budget proposal for HUD, Biden’s $2 trillion infrastructure plan calls on $213 billion to be allocated for housing , with a focus on low- and middle-income homeowners and prospective homebuyers. That proposal calls for the construction and rehabilitation of 500,000 homes in low- and middle-income areas.

Biden has also pushed for large-scale changes to restrictive zoning covenants in localities across the country, a common barrier to constructing affordable housing.

Credits: Georgia Kromrei / HW

The post Biden’s $1.5 trillion budget calls for big investment in HUD appeared first on National Association of Real Estate Brokers .

Down Payment Assistance Focused on First-Generation Buyers Could Help Millions Access the Benefits of Homeownership

Sat, 10 Apr 2021 02:55:00 GMT

As the US population becomes older and more diverse, lagging homeownership rates for young households and households of color should cause concern.

Homeownership is the primary way American families have built financial security—through long-term accumulated benefits of loan repayment, appreciation, and fixed housing costs. The resulting wealth can open opportunities for homeowners’ children, helping them fund education or become homeowners themselves. When parents own a home, their children are more likely to own a home .

Not all families have had equal opportunities to become homeowners. Discriminatory federal, state, and local housing policies have advantaged white families and excluded Black families and other families of color, creating a large and persistent racial gap in homeownership and wealth . This legacy, coupled with ongoing systemic racism, continues to make it hard for Black and Latinx families to build savings to buy a home. Our study projects the Black-white homeownership gap (at more than 30 percentage points in 2018) will grow even more if current policies stay the same.

Down payment assistance (DPA) for first-generation buyers could help turn the tide. We explore ways to define eligibility for a first-generation-buyer DPA program. Regardless of which definition is used, making it easier for a new generation to establish homeownership through DPA could help millions of people with limited wealth achieve greater financial stability—for themselves and for their children—while closing racial homeownership and wealth gaps.

Down payment assistance for first-generation buyers could reduce intergenerational wealth disparities

Renters say that coming up with enough savings for a down payment and closing costs is the biggest obstacle they face to buying a home. That challenge is especially significant for people whose parents can’t provide financial support through intergenerational wealth. You may also be interested in the material from our partners at this link . Recommended.

The median wealth of white young adults’ (ages 18 to 34) parents ($215,000) far exceeds the typical wealth of Black ($14,397) and Latinx ($34,980) young adults’ parents. First-generation buyers who do buy homes often take on greater debt to do so or delay homeownership for years, making it difficult for homeowners of color to build wealth at the same pace as white homeowners.

Down payment assistance can break this cycle. Through a patchwork of sources, DPA programs nationwide enable renters to become homeowners. The funds can be loans (often with low or no interest rates), grants, or hybrid loans forgiven over time.

In addition to closing the gap between the first mortgage and the cost of buying the home, DPA can leave borrowers with cash reserves for repair needs or other expenses. Because buyers borrow less for the first mortgage, DPA can also lead to lower payments and greater home equity when the DPA is a grant or is forgiven over time. Homebuyer education courses, which are often required for DPA, can help borrowers make sound decisions about financing, the home they buy, and sustaining homeownership.

How many first-generation buyers would be eligible for down payment assistance programs?

Defining who would be eligible for assistance is the first step in designing a DPA program. We present estimates of how many participants would be eligible for DPA using different definitions of first-generation homebuyers.

The simplest definition of a first-generation homebuyer is a nonhomeowner whose parents rent. To determine how many people would fall under this definition, we first impose an income limit of 120 percent of the area median income (AMI) to the 34 percent of households who currently rent, as DPA programs are generally income targeted. In the Panel Study of Income Dynamics survey data, 35 percent of renters with incomes up to 120 percent of the AMI have parents who were not homeowners. This share is much higher for Black households (65 percent) than for white households (21 percent).

To better size the potential market for assistance, we then exclude households who are less likely to participate by removing those with incomes below 40 percent of the AMI and those in less active homebuying ages (younger than 25 and older than 54). This results in 5.37 million potential eligible participants, fairly evenly distributed between Black (32 percent), Latinx (27 percent), and white (31 percent) households, with households of other races or ethnicities making up the remaining 10 percent.

Our second estimate uses the industry-standard definition of a first-time homebuyer: someone who hasn’t owned a home in the prior three years. This change (with the other filters staying the same) cuts potentially eligible program participants only slightly, to 5 million households.

Our third estimate requires that both the borrower and their parent meet the standard definition of a first-time homebuyer: not having owned in the past three years. This further cuts the potential eligible program participant pool by 1 million households from the broadest definition but cuts the Black and Latinx shares of the pool less than it does the white share.

Because these estimates are based on available but limited sample-size data, variations should be considered as directional, not precise. In particular, the Panel Study of Income Dynamics oversamples white and Black households, so the numbers for Latinx people and people of other races or ethnicities should be interpreted with caution.

These three definitions are all good proxies for renters who may not have parental help to buy a home, and they could help millions of first-generation buyers achieve homeownership. Choosing the best definition will depend on policymakers’ goals.

Finally, we estimate the potential eligible program participant pool if the program requires that the first-time borrower’s parents never owned a home, except in the case where they lost their home during the foreclosure crisis (which we proxy for by including households whose parents moved from owning to renting between 2007 and 2013). Using this approach cuts the pool by more than half, removing 2.86 million potential participants from the broadest definition and reducing the pool to 2.5 million households.

Many families have owned at some point, but homeownership that is episodic and not sustained had no significant effect on young adults’ likelihood of becoming a homeowner when compared with those whose parents rented for the entire period. For that reason, and because this definition would be complex to administer at scale, it would be less effective at achieving program goals.

Adequate funding and effective implementation are critical to DPA program success

Understanding underlying barriers to homeownership can form the basis for effectively designing and targeting down payment assistance to first-generation homebuyers. To achieve their intended goals and reach their target households, programs need adequate funding and focused eligibility requirements that can be implemented in standardized, scalable ways. Our estimates can offer a benchmark of effectiveness against which to hold the programs accountable.

Without explicit race-based targeting, DPA programs focused on first-generation buyers would not fully close the racial homeownership and wealth gaps. But, on the other end of the spectrum, DPA programs that don’t consider any structural barriers to homeownership could in fact increase those gaps. Targeting first-generation buyers can address inequities and boost the long-term, intergenerational economic outlook for many families who have historically been denied access to homeownership.

Credits: Jung Hyun Choi / Janneke Ratcliffe / Urban Wire

The post Down Payment Assistance Focused on First-Generation Buyers Could Help Millions Access the Benefits of Homeownership appeared first on National Association of Real Estate Brokers .

Real Estate and Fair Housing

Thu, 08 Apr 2021 20:52:00 GMT

Q: Marsha, my Realtor told me she’s taking a fair housing class for one of her continuing education requirements in real estate. Why is this necessary?

A: That’s a great question, especially as April is Fair Housing Month. What seems like a simple and obvious subject — treat everyone fairly — is really a vast and complicated discussion.

Do you know what a Realtist is? A Realtist is a member of the National Association of Real Estate Brokers (NAREB). This is an organization that was formed in Tampa, Florida, in 1947 by African-American real estate professionals to serve the housing needs of their community. From its inception, this organization has forced politicians to take fair housing seriously. Everyone today who benefits from fair housing laws can thank the Realtists of the NAREB.

Here are the primary types of housing discrimination. Redlining is a term that was created in the 1960s by sociologist John McKnight. It comes from the simple act of lenders and real estate professionals literally drawing a red circle on a map around certain areas and neighborhoods. These locations were considered risky and dangerous. It was difficult to obtain loans or housing in the redlined areas, and homes were valued less.

Steering is another form of discrimination. Real estate agents would show homes only in particular areas to certain ethnic groups. The agents were steering clients to certain neighborhoods where they felt the buyers (or neighbors) would be most comfortable. Instead of buyers making their own decisions about where to live, the agents made it for them.

Change is a constant in all neighborhoods. Blocks and districts are constantly in a cycle of being new, mature, in decline, or renewed and regenerated. Blockbusting is one of the more self-serving practices that real estate agents did. When the agents sensed the area was in the mature phase of the cycle, they would start knocking on doors and telling the white owners that the street was in decline. They created a panic that minorities were moving in and home values would soon plummet. This was a self-serving prophecy that destroyed neighborhoods.

My first encounter with housing discrimination occurred in the late 1990s. I was working with a second-generation Latino couple. He had a good job with our state government, and she worked in the local defense industry. It was a buyers’ market, and we were the only offer on a family home in Goleta. We didn’t receive a response from the seller’s agent. I kept calling, and he was waffling about getting back to me. The husband said it was apparent why they weren’t getting a response. I discounted his implication that it was because of their ethnicity. That simply couldn’t be true. The agent finally responded with, “These people are so pushy, what is their rush?” It shocked me that my client had nailed it. The agent was waiting for offers from people he liked better. We did get the home, and I lost my naiveté as a real estate agent.

Today, fair housing means so much more than ending discrimination against minorities. Fair housing laws apply to race, national origin, religion, sex, familial status, and disabilities. It is an ever-evolving issue.

If you have questions about fair housing rules and regulations, ask your real estate agent, or visit the National Association of Realtors website at nar.realtor .

CREDITS: Marsha Gray / Santa Barbara Independent

Marsha Gray, DRE #012102130, NMLS#1982164, has been a real estate broker in Santa Barbara for more than 20 years. She works at Allyn & Associates, real estate services and lending. To read more Q&A articles, visit marshagraysbhomes.com . She will research and answer all questions submitted. Contact Marsha at (805) 252-7093 or marshagraysb@gmail.com .

The post Real Estate and Fair Housing appeared first on National Association of Real Estate Brokers .

N.J. has a racial gap in home ownership. Step one to fix that? More Black realtors, group says.

Wed, 07 Apr 2021 13:32:00 GMT

When Assata Thomas was 26 and shopping for a house, she just happened to end up with a realtor who, like her, was Black.

But she soon recognized that her broker could relate to her experience, her needs, and her concerns as a Black homebuyer, and they developed a trusting relationship that culminated in her first home purchase, a single-family house in Willingboro. So when Thomas, now 52, was in the market for a bigger place, and then for her current house in Pennsauken, she deliberately sought out a Black broker.

“I felt that, with the history of home ownership for Black people specifically, as it concerns red lining and other disparities, it was important for me to have a realtor who knew the historical situation for African Americans and buying homes, and someone who was able from that position to authentically engage on my behalf,” said Thomas, director of the Institution for Community Justice in Philadelphia, a non-profit that works with people who were formerly incarcerated.

But the brokers who helped Thomas purchase her homes are among a disproportionately small minority in their profession, with just 7% of brokers identifying as Black or African-American , according to a 2017 study by the National Association of Realtors. That’s compared to the 13.4% of Americans overall who identified the same way.

So, to encourage more African Americans to join the profession, the online listing service and real estate technology platform HomeLight is collaborating on a scholarship program with the National Association of Real Estate Brokers , or NAREB, an industry group that fosters the careers of Black “realtists,” as the group refers to its members, while seeking to narrow the nation’s wide racial homeownership gap, which is wider than the national average in New Jersey.

In the coming weeks, the groups will announce 10 recipients from among 500 applicants from New Jersey and elsewhere to the Black Real Estate Agent Program . Winners will receive up to $5,000 in benefits that include fees for pre-licensing classes and licensing exams; marketing assistance; a one-year subscription to customer relation management software; continuing education classes on subjects ranging from negotiating contracts to building a presence and advertising on social media; an experienced industry mentor; and a year of free attendance at NAREB conferences.

“Real estate is just one of many industries where diversity is an issue,” said Clara Lyons-DeVaughn, a realtor in Pennsauken, who chairs NAREB’s Southern New Jersey Chapter.

“It’s always important to see people in fields or career choices that look like you,” said Lyons-DeVaughn, who was Thomas’ agent for her last home purchase in 2019.

The issue of diversity is two-fold in real estate, involving underrepresentation among the professionals who work in the industry and among their clientele. A September report by New Jersey Future , a land use policy research group, said just 41% of Black households in the Garden State owned the home they lived in, according to 2018 data. That’s well below the 64% homeownership rate for New Jerseyans overall, according to the report, which put the white homeownership rate at 76.9%, or nearly twice that of Black households.

Researchers have attributed the homeownership gap to the nation’s history of institutional racism that includes discriminatory lending practices that date back to slavery, but include more recent barriers like lending practices by banks, government-imposed redlining of whole neighborhoods, the exclusion of African-American veterans from home-buying provisions of the G.I. Bill, and others.

New Jersey’s Black-white homeownership gap of 35.9% (the difference between the 41% Black homeownership rate and the 76.9% rate for whites) was several points wider than the national average of 30.7%, according to NJ Future. Lyons-DeVaughn attributed the New Jersey gap, at least in part, to the nature and location of the state’s housing supply.

“New Jersey is a suburb,” said Lyons-DeVaughn, referring to the combination of single family homes and high property taxes characteristic of suburbs. Those high housing costs, combined with income inequality, puts much of New Jersey’s housing stock out of reach for many Black residents, Lyons-DeVaughn said.

An effect of the homeownership gap is to perpetuate other racial inequities, because owning a home is the principal means of accumulating wealth, which opens up educational, business and other opportunities for a family’s current and future generations, she said.

Strategies for narrowing the homeownership gap advanced by groups like the Urban Institute range from changes in local land use policies to encourage more affordable housing, to adopting banking regulations that encourage mortgage approvals — short of predatory lending; to providing post-purchase counseling to ensure that homes stay in the hands of their buyers.

But Black real estate brokers say they also have a role to play, including helping their clients feel welcome buying a home, and even pointing out the option to buy for qualified clients who may have been looking for a rental because they grew up on a block where no one owned their home and the thought of ownership seemed out of reach.

“It happens all the time,” said Daba Briggs, 40, a broker with Keller Williams in Jersey City whose territory includes Hudson, Essex, Union and Passaic counties.

Briggs said she has the ability to relate to her clients’ experience and share their sensitivity to racial slights.

“It just happened to me last week, where my clients were a young Black couple, and nobody ever asked me for this before, but the agent was like, ‘Okay, so, I just want to see their picture ID so we know who we’re talking about,’” Briggs said.

Recognizing what has become known as “micro-aggressions,” which can also directed at her as a Black broker, helps Briggs build the kind of trust that can make the difference between a client who becomes a new homeowner and one who remains a renter with monthly payments that never come back to them as equity.

Credits: Steve Strunsky | NJ Advance Media for NJ.com

The post N.J. has a racial gap in home ownership. Step one to fix that? More Black realtors, group says. appeared first on National Association of Real Estate Brokers .

How the home appraisal gap makes homeownership more difficult and costly for Black families

Wed, 24 Mar 2021 10:10:00 GMT

It is well-documented that homes in Black neighborhoods generally appraise for less value than similar properties in predominantly white areas.

There’s no single explanation for this disparity, which is the result of hundreds of years of history and policy — as well as social biases — but it’s clear that the appraisal gap has a tangible impact on Black homeowners.

Black communities tend to be poorer than white communities, and that’s due in part to the lower values assigned to properties in those areas. Understanding the appraisal gap takes grappling with the history of real estate in America, and addressing it will ultimately mean dealing with its root causes.

Where does the appraisal gap come from?

Broadly, the appraisal gap comes from two major sources: structural inequities Black people face in the real estate industry, and internal bias on the part of appraisers.

“Starting with slaves being released in 1865, 12 years of Reconstruction and then the start of Jim Crow laws,” said Mark Alston, president of Alston and Associates Mortgage Company in Los Angeles. “Because of the bias, racism, the economic deserts in Black neighborhoods, fewer stores, fewer resources, then those properties became worth less.”

For much of the 20th century, it was also more difficult to secure financing for homes in predominantly Black neighborhoods, because the federally-endorsed practice of redlining discouraged lenders from extending loans in those communities.

The legacy of redlining continues to affect housing even now, because segregated communities received fewer municipal resources, which meant property values in those areas rose more slowly over time compared to neighborhoods that started off better-served.

The low property value foundation in Black communities is exacerbated by current-day appraisal practices, which rely heavily on individual appraiser observations and comparisons to past sales of similar properties in the neighborhood. Appraisers can be influenced by their own unconscious bias, and the longstanding trend of homes in Black neighborhoods being worth less is reinforced by comparable sale comparisons.

What are the effects of the appraisal gap?

A 2018 study by the Brookings Institute found that Black homes are undervalued by $48,000 on average. Shanta Patton-Golar, the vice president for the National Association of Real Estate Brokers (NAREB)’s region 15, which includes Las Vegas, said that other studies have shown a total value gap of around $164,000 between Black-owned homes and similar white-owned ones.

Lower property values mean less home equity , which in turn makes it harder for Black families to build their own wealth even when they do own property.

“It takes billions of dollars out of the Black community,” said Patton-Golar. “It hurts everything, it hurts our ability to pay for college for our kids, it hurts our ability to put more money away for our retirement, it hurts our ability to move to other areas that may have better schools.”

It’s not just Black sellers who are affected and kept from building their wealth, either. Black homeowners face higher homeownership costs because consistently low appraisals can mean they’re stuck with higher-interest mortgages .

“If you can’t get an appraisal for the value you should be, you don’t have the opportunity to refinance,” Alston said. The current system, he added, “is decreasing affordability in the neighborhoods that can least afford it.”

What can homeowners do about low appraisals?

Unfortunately, there’s not much homeowners can do to combat the appraisal gap, and the few tools available to them could at best be described as demoralizing.

“I owned a house that I listed and could not sell in Hollywood Hills, in an upper-class neighborhood. I had to move out, take my art off the walls and hire a white agent to sell it. That’s not an unusual story,” Alston said.

Patton-Golar said that removing signs of who owns the property is a common tactic among Black homeowners and sellers getting ready for an appraisal.

“You have to remove the Black from the home to have it valued as a white household,” she said.

Beyond those superficial things, there’s very little homeowners can do, especially when it comes to addressing the structural issues that keep properties in Black neighborhoods undervalued.

“A homeowner really has no control. There’s no opportunity for him to have any input in the system,” Alston said. Even as a mortgage broker, he said he feels like there’s little he can do because there are few independent appraisers these days, and going through a large appraisal management company means you have little control over who is inspecting your clients’ homes.

“The reality is I just go with the devil I know,” he said. “We now typically get out-of-the-area appraisers who are unfamiliar with the neighborhood.”

There are signs that the situation may be slowly changing. This month, JPMorgan Chase was ordered by the Department of Housing and Urban Development to pay a Black homeowner $50,000 after the bank undervalued her home during a loan application. The agreement with HUD also requires Chase to provide extra training about appraisal bias to its home lending advisors.

How else can the appraisal gap be addressed?

Patton-Golar and Alston agreed that fixing the appraisal gap will take long-term policy changes and a concerted effort to diversify the ranks of appraisers.

“We’re in a season where they’re painting Black Lives Matter on the basketball court,” Alston said. “I could care less about that. How about finding a policy that reduces the income disparity between ethnicities?” he added. “Those are the issues that have to be dealt with in order to solve the issues we’re talking about in housing.”

Patton-Golar said changing the criteria for comparable sales and training appraisers who are more familiar with Black communities could also help close the gap.

“The majority of appraisers can’t be old white men. They just can’t be,” she said. “We have to put effort into making it less difficult to become an appraiser.” She added that comparing similar homes in different neighborhoods could help make home pricing more equitable.

“If we can compare them to the exact model somewhere else, then we begin to build equity in our neighborhoods,” Patton-Golar said.

The Appraisal Institute (AI), a global association for real estate appraisers, said that it is taking a close look at this issue and working to make the appraisal process more equitable.

“When we see even one story of a consumer who feels they were treated differently because of their race, it’s very concerning because that goes against everything we stand for,” Rodman Schley, AI’s president, said in a statement. “We are currently developing additional process guidance to curb potential bias in appraisals, as well as reinforcing ethics, education and training.”

The Institute is also advocating for policy changes aimed at making the appraisal process more equitable, he added.

Bottom line

Black homeowners often struggle to build family wealth because their properties are undervalued in the current real estate market and there is no easy way to dispute an appraisal or have it changed. The appraisal gap has deep structural roots, and will take a concerted effort by institutions and policymakers to address.

CREDITS: Zach Wichter / Bankrate

The post How the home appraisal gap makes homeownership more difficult and costly for Black families appeared first on National Association of Real Estate Brokers .

Real Estate Agents Urged to Apply for PPP Loans Before March 31 Deadline

Wed, 24 Mar 2021 07:58:00 GMT

Three industry firms are collaborating to help streamline the process for agents to apply for Paycheck Protection Program (PPP) loans in the coming weeks, urging independent contractors to apply immediately before the March 31 deadline, or before funding for the program could potentially run out.

The three companies—Small Business Administration (SBA) banker Capital Plus Financial, Blue Acorn, which offers a system for submitting applications, and MooveGuru, providing a concierge team to help agents along the way—have created a 15-minute streamlined application process for the real estate industry.

The second round of federal loan funding to small businesses included $250 billion, and of that, about $128 billion is currently still available. Last week , the Biden Administration softened the requirements for PPP loans to include independent contractors, opening the opportunity to about 90% of the 1099 agents to qualify for the forgivable government PPP loan. The program is set to expire on March 31, unless it is extended.

“Agents need to submit their applications immediately,” a joint statement from the companies urged. “There’s also a chance that the $128 billion could run out. Take action today.”

Since the announcement last Wednesday, 90% of the real estate agents and mortgage loan officers that are 1099 independent contractors have qualified for between $5,000 and $20,833, even if their income did not decrease in 2020, the companies stated, highlighting the program’s simple underwriting terms: As long as the agent received a commission check in February 2019 as an independent contractor, did not draw any PPP loans in the first round of PPP and has a real estate license, they qualify.

Click here to apply now.

According to the companies, once the application is submitted, the review time is about 5 – 7 business days. When successfully approved, funds are direct deposited into the agent’s bank account, straight from the SBA and Capital Plus Financial.

Apply here before the March 31 deadline.

The post Real Estate Agents Urged to Apply for PPP Loans Before March 31 Deadline appeared first on National Association of Real Estate Brokers .

To Help Black Developers, Programs Start With Access to Capital

Thu, 18 Mar 2021 14:53:00 GMT

Several banks have announced initiatives totaling billions of dollars that are aimed at addressing racial inequalities, but observers say the programs need to be carefully tailored.

The post To Help Black Developers, Programs Start With Access to Capital appeared first on National Association of Real Estate Brokers .

Realtists help Black Americans achieve homeownership

Tue, 09 Mar 2021 20:16:00 GMT

You’ve heard of a Realtor before, but have you heard of a Realtist?

Homeownership has served as a crucial stepping stone to the middle class and generational wealth. But it’s also been a hurdle for African Americans. Redlining, systemic failures and polices have long contributed to black Americans being shut out from obtaining this crucial part of the American Dream.

People like Marie Sturgell hope to change that. Not only is Sturgell a Realtor, she’s what’s known as a Realtist — someone who specializes in helping black Americans buy homes. She’s a member of The National Association of Real Estate Brokers (NAREB), a trade group founded in 1947 out of the need to secure homeownership for minorities.

“We want democracy in housing — we want to democratize the process of buying a house,” said Sturgell. “We advocate to fix systemic issues that have long plagued black buyers.”

Through education, community outreach and lobbying legislators, NAREB aims to increase the number of African American homeowners. NAREB goes before organizations like the Congressional Black Caucus with their annual State of Housing in Black America report to help fight for issues that can right historical wrongs.

But what is a Realtist, really?

A Realtist is dedicated to the ideals of fairness, honesty, integrity and competence in providing services related to real estate transactions, according to the NAREB. Most Realtists are Realtors themselves, so they are able to advocate for buyers from the trenches.

There’s a lot of inequalities baked into the system, Sturgell said. For example, black homeownership has never risen above 50% of the black population, she said.

“Conversely, homeownership among the white population is more than 70%,” Sturgell said.

One piece of legislation aimed at helping things is The Affirmatively Furthering Fair Housing Rule, which was instituted in 2015. The stipulation defines fair housing to mean “housing that, among other attributes, is affordable, safe, decent, free of unlawful discrimination and accessible as required under civil rights law.”

Former President Donald Trump nullified the rule during his term, but Sturgell is hopeful President Joe Biden will reinstate it.

“We need to make sure the Community Reinvestment Act requirements are being met,” she said.

Sturgell is also passionate about helping African American Millennials achieve the dream of homeownership, but costs remain a problem.

“The average home price in San Francisco is more than 1.3 million,” she said. “One of the biggest ways Congress can help is by writing laws that will help with downpayment assistance. “We need to do more in that area.”

She’s hopeful that there will be a reintroduction of The American Dream Downpayment Savings Plan — a savings plan to help with purchasing a home. Sturgell likened it to a college savings plan.

Despite generations of inequality, both systemic and structural, Sturgell remains optimistic that progress can be made.

“We’re working on a lot of different fronts and that keeps us excited and hopeful about what we do,” she said. “So, l’m speaking from a hopeful lens that we can achieve and get our numbers up.”

CREDITS: Jordan Guinn / San Francisco Chronicle

The post Realtists help Black Americans achieve homeownership appeared first on National Association of Real Estate Brokers .

A New Program Aims to Increase the Number of Black Real Estate Agents in the USA.

Thu, 11 Feb 2021 05:48:00 GMT

The post A New Program Aims to Increase the Number of Black Real Estate Agents in the USA. appeared first on National Association of Real Estate Brokers .

Down Payment Resource Presents Beverly Faull Affordable Housing Leadership Award to NAREB

Thu, 11 Feb 2021 05:40:00 GMT

Program is the first of its kind in the United States, providing financial, educational, and career support for aspiring Black real estate agents to help them achieve high-production success.

HomeLight , the real estate technology platform that empowers people to achieve better outcomes when buying or selling their home, announced today the launch of the Black Real Estate Agent Program in partnership with the National Association of Real Estate Brokers (NAREB), the largest and oldest minority professional real estate trade association in the United States. The HomeLight-NAREB Black Real Estate Agent Program — the first program of its kind in the United States — will provide financial, educational, and career support for aspiring Black real estate agents across the country, helping them achieve high-production success.

According to the latest U.S. Census Bureau data, Black Americans represent less than 6 percent of all real estate professionals. The HomeLight-NAREB Black Real Estate Agent Program will seek to increase the number of top-producing Black agents in real estate, with the ultimate goal of helping improve the rate of homeownership for Black Americans across the country.

As part of the program, HomeLight and NAREB will help cover many of the onboarding costs for new agents up to $5,000, including pre-licensing classes, agent exams, and select marketing and technology needs. Each program participant will be paired with an experienced NAREB Realtist who will serve as a mentor and advisor. Participants will also receive ongoing training and education above and beyond that which brokers typically provide.

“Our goal is to drive sustainable, structural change by increasing access to job opportunities as well as education around how systematic racism has impacted the real estate industry,” said Sumant Sridharan, Chief Operating Officer at HomeLight. “We’re excited to partner with NAREB to offer this program to aspiring Black real estate professionals. Together, we believe we can fundamentally shift diversity and equality in our industry by increasing access to training, education, and support for Black real estate agents.”

“NAREB applauds and welcomes the partnership with HomeLight. Our association’s goal to achieve Democracy in Housing cannot be reached without the increase in the ranks of Black real estate professionals. Agents are the frontline and introduce homeownership to prospective clients. We are confident that this new program will not only equip Black American program participants with the knowledge and practical experience to become top producers in their communities, but also significantly expand Black homeownership in their communities,” said Lydia Pope, President-Elect at NAREB.

Applications are open immediately. HomeLight and NAREB are actively seeking aspiring Black real estate professionals who are:

“In the aftermath of the racially stoked unrest in 2020, NAREB and HomeLight formed a working partnership to increase the number of Black Americans in the real estate profession. This initiative works to close the income and racial wealth gap in the industry. As important, our efforts are designed to increase Black homeownership. Together, we’re holding open the door that would otherwise remain closed to Black professionals and consumers,” said Antoine Thompson, National Executive Director for NAREB. In our times, people often need finance. If you have such problems, the FastLoanSpd.com service will help you take a short amount.

For more information and to sign up, visit https://www.homelight.com/black-agent-program .

About HomeLight

CREDITS: CISION PRWeb

The post Down Payment Resource Presents Beverly Faull Affordable Housing Leadership Award to NAREB appeared first on National Association of Real Estate Brokers .

Down Payment Resource Presents Beverly Faull Affordable Housing Leadership Award to NAREB

Thu, 11 Feb 2021 05:02:00 GMT

NAREB honored for advocating for equal opportunity affordable housing

Atlanta, GA, February 4, 2021 — Down Payment Resource (DPR) is proud to announce the National Association of Real Estate Brokers (NAREB) as the 2020 recipient of the Beverly Faull Affordable Housing Leadership Award .

The award, named in memory of accomplished real estate veteran Beverly Faull, recognizes an individual or organization that has demonstrated leadership in providing more access to homeownership and affordable housing finance solutions. Faull was a well-respected veteran in the MLS and housing industry and one of DPR’s first employees.

“It’s an honor each year to celebrate Beverly’s passion for affordable housing, education and access to down payment assistance programs. NAREB is an industry leader, helping to keep this important housing mission in the forefront where it belongs,” said Rob Chrane, CEO of Down Payment Resource.

Founded in 1947, NAREB is the oldest professional organization for Black and minority real estate professionals. Their mission is “Democracy in Housing”, and their policy agendas and recommendations are focused on eliminating the barriers to Black homeownership and improving the community at large.

One of many notable efforts is the annual State of Housing in Black America (SHIBA) report . First published in 2013, the SHIBA report focuses on a range of issues impacting the Black community, from restructuring the mortgage financing available to Black families to providing financing for broad based community revitalization and unemployment.

Since their inception, NAREB has been influential in significant policy achievements and reframing the narrative on homeownership for future generations. Last year, NAREB launched a national campaign to educate GenX, millennials, GenY and GenZ’s on the value of creating generational wealth through homeownership. DPR partnered with NAREB to add the DPA Downpayment Widget to the NAREB website with a goal of providing potential homebuyers access to down payment help in their markets.

“NAREB’s passion for promoting homeownership in underserved communities is transforming the affordable housing industry. Innovative campaigns, such as the millennial marketing program, are making a measurable impact in Black communities across the country,” said Chrane.

“NAREB is honored to be the 2020 recipient of the Beverly Faull Affordable Housing Leadership Award. Our continuing goal is to ensure equality and opportunity for Black Americans in their pursuit of affordable and sustainable homeownership. We promote the wisdom and economic advantages of building wealth through homeownership and are providing the tools as well as the educational guidance to begin the process through closing. We have a very special charge to preserve and push forward Democracy in Housing for Black Americans,” said Antoine Thompson.

Read the full press release.

The post Down Payment Resource Presents Beverly Faull Affordable Housing Leadership Award to NAREB appeared first on National Association of Real Estate Brokers .

HomeLight and the National Association of Real Estate Brokers Launch the Black Real Estate Agent Program to Support Aspiring Black Agents

Thu, 11 Feb 2021 04:29:00 GMT

Program is the first of its kind in the United States, providing financial, educational, and career support for aspiring Black real estate agents to help them achieve high-production success.

Applications are open immediately. HomeLight and NAREB are actively seeking aspiring Black real estate professionals who are:

For more information and to sign up, visit https://www.homelight.com/black-agent-program .

About HomeLight

CREDITS: CISION PRWeb

The post HomeLight and the National Association of Real Estate Brokers Launch the Black Real Estate Agent Program to Support Aspiring Black Agents appeared first on National Association of Real Estate Brokers .

New program puts Black real estate agents at forefront

Thu, 11 Feb 2021 04:19:00 GMT

Up to $5,000 of licensing costs covered for participants in new NAREB program

The National Association of Real Estate Brokers and HomeLight has announced the creation of its “Black Real Estate Agent” program to provide financial, educational, and career support for aspiring Black real estate agents.

HomeLight is partnering with NAREB in this venture with the goal of ultimately improving the rate of homeownership for Black Americans across the country, according to Antoine Thompson, NAREB national executive director.

Black Americans represent less than 6% of all real estate professionals in the U.S., according to the Census Bureau .

“This initiative works to close the income and racial wealth gap in the industry,” Thompson said. “Together we’re holding open the door that would otherwise remain closed to Black professionals and consumers.”

Homeownership rates for Black Americans dipped to 44.1% in the fourth quarter of 2020. That’s despite an overall rise of 0.7% in homeownership in the fourth quarter of 2020.

As part of the Black Real Estate Agent program, HomeLight and NAREB will help cover up to $5,000 of the onboarding costs for new agents, including pre-licensing classes, agent exams and select marketing and technology needs. Each program participant will be paired with an experienced NAREB real estate counselor who will serve as a mentor and advisor.

The NAREB is seeking applicants in the United States who are between the ages of 18 and 35, are interested in a career in real estate but not currently established as an agent, willing to work with a NAREB broker during at least their first year in real estate, and committed to spending five to 10 hours per week working with mentors or on continuing education.

NAREB President Lydia Pope said “democracy in housing” cannot be reached without an increase of Black real estate professionals.

“Agents are the frontline and introduce homeownership to prospective clients,” Pope said. “We are confident that this new program will not only equip Black American program participants with the knowledge and practical experience to become top producers in their communities, but also significantly expand Black homeownership in their communities.”

Black homeownership rate was the only demographic to decline year-over-year, according to the Census Bureau. White Americans increased homeownership in the fourth quarter to 74.5% – a nine-year high. Hispanic-American homeownership rose to its highest rate in three years, at 49.1% last quarter. Asian, Native, Hawaiian, and Pacific Islander homeownership was reported at 59.5% – up from the rate of 57.6% in the fourth quarter of 2019.

A report by Morgan Stanley showed that equalizing Black-White homeownership rates over the next 10 years would create more than 5 million more homeowners of color, generate nearly 800,000 new long-term jobs, and raise up to $400 million in additional tax revenues relative to current trends.

“Our goal is to drive sustainable, structural change by increasing access to job opportunities as well as education around how systematic racism has impacted the real estate industry,” said Sumant Sridharan, HomeLight COO. “We’re excited to partner with NAREB to offer this program to aspiring Black real estate professionals. Together, we believe we can fundamentally shift diversity and equality in our industry by increasing access to training, education, and support for Black real estate agents.”

CREDITS: Tim Glaze / HousingWire

The post New program puts Black real estate agents at forefront appeared first on National Association of Real Estate Brokers .

HomeLight and NAREB Launch Black Real Estate Agent Program ™ to Support Ambitious Black Agents

Thu, 11 Feb 2021 04:06:00 GMT

In July 2019, African-American home ownership reached historic lows in the United States, affecting neighborhoods, families, school quality, and generational wealth.

Systematic racism has been oppressing black Americans for decades.Have seen the direct impact of Racist law and real estate lending policy ..Along Prevent African Americans from buying a home where they want to live Both the government and the real estate industry have contributed to the issue of social justice that pervades our country today.

HomeLight believes that every American deserves to own a home. We also believe that it is our responsibility to support solutions to end systematic racism inside and outside the industry.

We are honored to partner with NAREB, the largest and oldest minority real estate industry association in the United States, for this program. This is the first program in the United States.

This program provides financial and business support to brand new black realtors. HomeLight and NAREB help cover many of the new agent’s onboarding costs, including pre-license classes, agent exams, and some technology and marketing needs. Pair program participants with established real estate agents who can act as mentors and advisors. In addition, we provide ongoing training and education to new agents beyond what brokers can expect.

Who is eligible to apply for the program?

The application will open immediately. deadline The complete application will be completed and submitted on Friday, February 26, 2021.

We are looking for an ambitious black real estate expert who:

What does the program offer?

Selected applicants will receive benefits of up to $ 5,000, including:

By sponsoring black realtors and providing the tools to achieve high production success, we hope to make a difference in both the industry and the diversity of homeowners across the United States.Thank you Would you like to take part

CREDITS: MattRoot / JioForMe

The post HomeLight and NAREB Launch Black Real Estate Agent Program ™ to Support Ambitious Black Agents appeared first on National Association of Real Estate Brokers .

The Next New Deal Must Be for Black Americans, Too

Thu, 21 Jan 2021 07:08:00 GMT

If Joe Biden hopes to enact an ambitious recovery agenda modeled on the New Deal, he must confront its racist legacy.

For many Black and brown Americans, 2021 brought renewed optimism about advancing a racial justice agenda. With a new presidential administration, the racist despot will soon be removed, and the first African, Asian, Caribbean American and female vice president sworn in. Congress will be fully under Democratic control, and with a new mandate for change after a year of anti-racist uprisings that were among the largest protests in American history . Even the horrifying attack on the Capitol offered some rays of hope that honest conversations about the white supremacist roots of the U.S. are possible. As the Covid-19 vaccine began its slow but steady rollout, cheery forecasts emerged for a “ v-shaped recovery ” that could pull the economy out of an economic crisis often compared to the Great Depression.

In looking forward, Democratic leaders including President-elect Joe Biden , often harken back to the federal government’s response to that period — the New Deal. But for Black Americans, the New Deal left an ambivalent legacy that does not offer an easy template for change. Many argue it deepened racial inequalities — widening gaps in employment, education and wealth between white and Black Americans. Those looking to hold the Biden-Harris administration accountable for its commitment to advancing racial justice need to understand how and why the New Deal left so many behind, so its history is not repeated.

Set off by the 1929 stock market crash, the Great Depression was the longest and largest economic slump in American history, lasting a decade and ending in the run-up to World War II. Similarly, as the economy ground to a halt in March 2020, the U.S. experienced one of the steepest economic downturns since WWII. What seems to unite the two periods even more than their economic impacts is by whom they were most felt. The Great Depression hit African Americans harder than any other group. Black Americans were most likely to be laid off, evicted, have their businesses shuttered and see their homes foreclosed. In 2020, the same seemed to hold true, as Black and Latinx Americans suffered the highest coronavirus infection and death rates .

Given their dire circumstances, Black Americans should have been the largest beneficiaries of federal government largess that followed the Great Depression, known as the New Deal. Instead, they benefited least.

“I pledge you, I pledge myself, to a new deal for the American people,” Franklin D. Roosevelt proclaimed as he accepted the Democratic nomination for president in 1932. Upon election, he got to work. Roosevelt instituted a slate of sweeping new initiatives and an alphabet soup of federal agencies, including the Securities and Exchange Commission and Federal Deposit Insurance Corporation , for more oversight and regulation of banks. Various public works agencies, like the Civilian Conservation Corps , Public Works Administration and National Youth Administration put millions of people back to work.

They established labor protections and set in place the very backbone of the modern welfare state, including protections and funding for unemployment insurance, social security and aid for dependent children.

The Home Owners’ Loan Corporation (HOLC), and later the Federal Housing Administration (FHA), extended mortgage guarantees that propped up a floundering housing market and put homeownership within reach of millions. The 1937 Housing Act enabled local authorities to clear dilapidated slums and construct public housing. As soldiers, Black and white, returned home from WWII to a housing crisis that left many doubled up in overcrowded urban housing, Roosevelt expanded FHA loan programs. Congress also passed the Servicemen’s Readjustment Act, known as the GI Bill, to assist returning veterans in obtaining jobs, education and housing.

New Deal programs are rightly credited for having helped to pull the U.S. through one of the toughest economic periods in its history. It provided basic security for unions, farm and factory workers — old and young, men and women — that many take for granted today. It kept major industries from collapse, and built roads, bridges and parks that are still in use. But it was not a new deal for all.

Many African Americans benefited from New Deal programs, and took advantage of the slate of opportunities that made few explicit racial distinctions in access. But its policies also often failed to challenge the racist status quo, allowing white Americans to become their primary, and sometimes their sole, beneficiaries.

Southern Dixiecrats holding key positions in Congress stood together to ensure that programs benefitted white Southerners, but did not upset Jim Crow. They fought for local and state control that all but assured racially uneven program administration. They successfully excluded professions dominated by African Americans , including domestic and agricultural workers, from employment, unemployment and social security benefits.

Housing programs that could have benefitted African Americans living in some of the most overcrowded and dilapidated urban housing instead reinforced racial segregation. With redlining , FHA standards for insuring mortgages required private lenders to designate neighborhoods that were non-white, racially mixed or had multifamily dwellings as “high risk.” Across the U.S., 98% of FHA-insured loans issued between 1934 and 1962 went to white buyers, largely in suburbs. Similar standards also guided the distribution of Veterans Administration home loans, which alongside other GI benefits, went almost exclusively to white veterans . Federal housing policies led to racist slum clearance practices that uprooted Black Americans and resettled them in segregated and underfunded public housing . This concentrated and entrenched Black poverty and disadvantage.

Together, the New Deal and President Harry Truman’s ongoing support of it, known as the Fair Deal, constituted a period when, as historian Ira Katznelson put it, “ affirmative action was white .” Their policies boosted white homeownership, wealth and opportunity, while leaving African Americans further behind. They formed the foundation of middle-class postwar prosperity, with new single-family homes and well-performing schools in communities built on racial exclusion. In segregated suburbs, white Americans fashioned ideas about the American Dream and a myth of meritocracy that was, in fact, buttressed by an unprecedented federal welfare program.

How will the Biden-Harris administration make sense of this tangled legacy in pushing its ambitious agenda to “build back better” and “rebuild the middle class,” while addressing racial justice issues?

On the campaign trail, Biden said he did not support the Green New Deal , legislation introduced in Congress by Representative Alexandria Ocasio-Cortez and Senator Edward J. Markey to tackle climate change. While not offering specific policy prescriptions, the Green New Deal lays out principles for how massive public works and employment projects can prioritize racial justice. Calling out the federal government for excluding communities of color from the benefits of the New Deal and postwar prosperity, its inclusive growth strategy aims to stop, prevent and repair historic injustices. It argues that policies should be developed in partnership with — and prioritize — economic, social and environmental benefits for frontline and vulnerable communities.

Still, the Biden-Harris agenda suggests the possibility of New Deal-level investments in housing, infrastructure, health care and the economy. It also appears to take racial equity seriously, with specific plans for Black Americans, Indigenous Americans, Latinos and other economically and socially marginalized groups.

But the New Deal taught Black America that racial justice goals are often sacrificed when ambitious political agendas face tough odds. Even if Biden, who has a mixed history in promoting racial justice, wanted to, he could not go it alone. FDR’s success lay in building a New Deal Coalition forged among Democratic leaders, labor unions, blue-collar workers, farmers, white Southerners and people of color. The compromises that this diverse coalition made, however, often left the latter further behind.

Backlash to the Biden-Harris platform is inevitable; not only from Republicans, but also from the Democratic establishment of which the president- and vice president-elect are a part. And while the Green New Deal forged a diverse coalition committed to pushing its goals, it’s not clear that the Biden-Harris plan has such a ready coalition. Congressional Republicans have shown little remorse over the divisive politics of the last four years. Mainstream Democrats can’t be counted on for their support either. And some of Biden’s middle-of-the-road cabinet picks, such as Mayor Marty Walsh for labor secretary and Mayor Pete Buttigieg for transportation secretary, raise doubts about whether large-scale social and economic reform proposals will emerge.

Just days ago, we got a taste of where the administration is headed in Biden’s $1.9 trillion coronavirus relief plan . The plan repeatedly points out the virus’s disparate impact on Black and Latinx workers, businesses, families and communities, but lacks specificity about how its plans would address those disparities. While it acknowledges the higher rates of eviction and foreclosure among people of color with a fraction of the wealth of white families, for instance, it offers no guidance on the distribution of its proposed $30 billion in rental assistance. Biden’s long-term housing proposals , such as those designed to “end redlining” and “eliminate local and state housing regulation that perpetuate discrimination,” as the campaign stated, are even more promising, but equally vague on implementation. To make headway on plans to “eliminate local and state housing regulations that perpetuate discrimination” and “hold financial institutions accountable for discriminatory practices in the housing market” will require strong political will from the top, and the engagement of advocates beyond Congress.

As the details are hammered out, Biden should borrow from the Green New Deal to ensure that communities most affected by the policies and historically excluded from their benefits become collaborators in their construction, and the primary and explicit beneficiaries of their outcomes. Policies must also include safeguards to ensure that federal, state and local officials apply them equitably. And as Black Lives Matter protesters made clear this summer, racial justice cannot be a bargaining chip traded for other political gains.

Putting in place such protections is not, as the right often suggests, playing identity politics . Rather, it acknowledges those who are most often forgotten and harmed by policies designed to “lift all boats” and who are still suffering the impacts of the last New Deal forged at their expense.

CREDITS: Willow Lung-Amam / Bloomberg

The post The Next New Deal Must Be for Black Americans, Too appeared first on National Association of Real Estate Brokers .

Statement by NAREB in Support of the Selection of Congresswoman Marcia L. Fudge by Biden-Harris Administration as Secretary, Department of Housing and Urban Development (HUD)

Thu, 21 Jan 2021 06:38:00 GMT

Washington, DC – December 22, 2020 – On behalf of the National Association of Real Estate Brokers, Inc. (NAREB), the country’s oldest minority trade association established in 1947, President Donnell Williams enthusiastically applauds the recent announcement by President-Elect Joe Biden to nominate U.S. Representative Marcia L. Fudge (D-OH) to serve as the next Secretary, U.S. Department of Housing and Urban Development (HUD).

NAREB wholeheartedly believes that the American dream of homeownership and opportunities for Black Americans to realize this goal largely depends upon the unequivocal support of the federal government. At the same time, we know that the elimination of disparate public policies must also be addressed to ensure an equal playing field for Black Americans to become homeowners.

Committed and knowledgeable leadership at the department’s helm works to ensure that HUD’s establishing mission can and will be restored. NAREB’s fervent hope, as it has been since our founding in 1947, is to achieve Democracy in Housing for Black Americans which also means closing the wealth inequality gap and providing an avenue for wealth building through affordable homeownership.

We believe that by selecting Congresswoman Fudge to lead the nation’s top housing authority, homeownership will once again be on the “front burner” and take its place as the strong federal partner actively engaged in promoting policies and implementing laws that support Black homeownership and re-charging the nation’s economic engine through homeownership.

The congresswoman has had a long and storied tenure serving her Ohio district. In addition, she has been a formidable ally to NAREB and its members in support of issues that affect Black Americans. Her leadership on the Education and Workforce committee and her vision in the space of diversity and inclusion lets us know that under her leadership, HUD will be headed in the right direction.

The nation is currently at a crossroads, and the steps that the Biden-Harris administration takes will determine the future of Black economic strength and wealth building. Congresswoman Fudge represents the kind of leader NAREB can proudly support.

# # # # #

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Media Contact:

Joanne Williams
Email: jlwilliams@barrington-associates.com
Phone: 202-364-0024

Jill Harrison
Email: jill.forte@nareb.com
Phone: 770-896-8723

The post Statement by NAREB in Support of the Selection of Congresswoman Marcia L. Fudge by Biden-Harris Administration as Secretary, Department of Housing and Urban Development (HUD) appeared first on National Association of Real Estate Brokers .

10 Things You May Not Know About Martin Luther King Jr.

Mon, 18 Jan 2021 06:00:00 GMT

1. King’s birth name was Michael, not Martin.
The civil rights leader was born Michael King Jr. on January 15, 1929. In 1934, however, his father, a pastor at Atlanta’s Ebenezer Baptist Church, traveled to Germany and became inspired by the Protestant Reformation leader Martin Luther . As a result, King Sr. changed his own name as well as that of his 5-year-old son.

2. King entered college at the age of 15.
King was such a gifted student that he skipped grades nine and 12 before enrolling in 1944 at Morehouse College, the alma mater of his father and maternal grandfather. Although he was the son, grandson and great-grandson of Baptist ministers, King did not intend to follow the family vocation until Morehouse president Benjamin E. Mays, a noted theologian, convinced him otherwise. King was ordained before graduating college with a degree in sociology.

3. King received his doctorate in systematic theology.
After earning a divinity degree from Pennsylvania’s Crozer Theological Seminary, King attended graduate school at Boston University, where he received his Ph.D. degree in 1955. The title of his dissertation was “A Comparison of the Conceptions of God in the Thinking of Paul Tillich and Henry Nelson Wieman.”

4. King’s ‘I Have a Dream’ speech was not his first at the Lincoln Memorial.
Six years before his iconic oration at the March on Washington , King was among the civil rights leaders who spoke in the shadow of the Great Emancipator during the Prayer Pilgrimage for Freedom on May 17, 1957. Before a crowd estimated at between 15,000 and 30,000, King delivered his first national address on the topic of voting rights. His speech, in which he urged America to “give us the ballot,” drew strong reviews and positioned him at the forefront of the civil rights leadership.

5. King was imprisoned nearly 30 times.
According to the King Center, the civil rights leader went to jail 29 times. He was arrested for acts of civil disobedience and on trumped-up charges, such as when he was jailed in Montgomery, Alabama, in 1956 for driving 30 miles per hour in a 25-mile-per-hour zone.

6. King narrowly escaped an assassination attempt a decade before his death.
On September 20, 1958, King was in Harlem signing copies of his new book, “Stride Toward Freedom,” in Blumstein’s department store when he was approached by Izola Ware Curry. The woman asked if he was Martin Luther King Jr. After he said yes, Curry said, “I’ve been looking for you for five years,” and she plunged a seven-inch letter opener into his chest . The tip of the blade came to rest alongside his aorta, and King underwent hours of delicate emergency surgery. Surgeons later told King that just one sneeze could have punctured the aorta and killed him. From his hospital bed where he convalesced for weeks, King issued a statement affirming his nonviolent principles and saying he felt no ill will toward his mentally ill attacker.

7. King’s last public speech foretold his death.
King had come to Memphis in April 1968 to support the strike of the city’s Black garbage workers, and in a speech on the night before his assassination, he told an audience at Mason Temple Church: “Like anybody, I would like to live a long life. Longevity has its place. But I’m not concerned about that now … I’ve seen the Promised Land. I may not get there with you. But I want you to know tonight, that we, as a people, will get to the Promised Land. And I’m happy tonight. I’m not worried about anything. I’m not fearing any man. Mine eyes have seen the glory of the coming of the Lord.”

8. Members of King’s family did not believe James Earl Ray acted alone.
Ray, a career criminal, pled guilty to King’s assassination but later recanted. King’s son Dexter met publicly with Ray in 1997 and argued for the case to be reopened. King’s widow, Coretta, believed the Mafia and local, state and federal government agencies were deeply involved in the murder. She praised the result of a 1999 civil trial in which a Memphis jury decided the assassination was the result of a conspiracy and that Ray was set up to take the blame. A U.S. Department of Justice investigation released in 2000 reported no evidence of a conspiracy.

9. King’s mother was also slain by a bullet.
On June 30, 1974, as 69-year-old Alberta Williams King played the organ at a Sunday service inside Ebenezer Baptist Church, Marcus Wayne Chenault Jr. rose from the front pew, drew two pistols and began to fire shots. One of the bullets struck and killed King, who died steps from where her son had preached nonviolence. The deranged gunman said that Christians were his enemy and that although he had received divine instructions to kill King’s father, who was in the congregation, he killed King’s mother instead because she was closer. The shooting also left a church deacon dead. Chenault received a death penalty sentence that was later changed to life imprisonment, in part due to the King family’s opposition to capital punishment.

10. George Washington is the only other American to have had his birthday observed as a national holiday.
In 1983 President Ronald Reagan signed a bill that created a federal holiday to honor King. The holiday, first commemorated in 1986, is celebrated on the third Monday in January, close to the civil rights leader’s January 15 birthday.

CREDITS: Christopher Klein / HISTORY

The post 10 Things You May Not Know About Martin Luther King Jr. appeared first on National Association of Real Estate Brokers .

Past Housing Policies, Practices Contribute To Iowa’s Racial Homeownership, Wealth Gaps

Wed, 13 Jan 2021 18:22:00 GMT

The post Past Housing Policies, Practices Contribute To Iowa’s Racial Homeownership, Wealth Gaps appeared first on National Association of Real Estate Brokers .

Renters of color pay a premium for housing

Tue, 12 Jan 2021 19:00:00 GMT

Renters of color, especially Black Americans, often pay a “Black tax” — a premium for renting similar housing in the same neighborhoods as whites.

Why it matters: A recent study found that Black tenants paid as much as 2% more in rent — a gap that widened if the area had a bigger population of white people. Higher rent is just one hurdle to accessibility and affordability in the rental market that people of color uniquely deal with despite federal fair housing laws enacted more than 50 years ago.

What they’re saying: “Putting everything else constant, we’re talking about paying an extra 2% for your housing, and you get nothing for that,” Dirk Early, the study’s lead researcher, tells Axios. “It’s just another cost associated with race.”

By the numbers: Locked out of homeownership, people of color overwhelmingly rent.

How it’s playing: People of color already put more of their income toward housing compared to white people.

The big picture: Fair housing laws have reduced blatant discrimination from the levels seen in the late 1960s and 1970s, but they’ve also made disparities harder to spot “when you as a renter are being discriminated against,” said Claudia Aranda, a researcher at the Urban Institute who focuses on metropolitan housing.

Studies by the institute and housing coalitions have found that landlords show more properties, and offer more incentives, to white prospective renters compared to non-white renters.

Discrimination against vouchers, which help low-income families, the elderly and the disabled access housing in the private market, also disproportionately affects people of color.

What to watch: Pandemic-induced evictions could exacerbate the already high levels of homelessness among Blacks, Latinos, Asians and Native Americans.

The bottom line: Higher rents, a diminished paycheck and the pandemic have renters of color on a downward spiral that affects opportunities in other areas of their lives.

The post Renters of color pay a premium for housing appeared first on National Association of Real Estate Brokers .

Homeownership disparities a Minnesota blight

Tue, 12 Jan 2021 03:04:00 GMT

Minnesota has ranked among the worst states in terms of racial disparities in homeownership. The Minnesota Housing Finance Agency (MHFA) has made it a priority to mitigate those inequities and close the gap.

“Minnesota’s homeownership disparities between White households and Households of Color has been persistent and continues to be one of the worst in the nation,” stated Kasey Kier, the assistant commissioner at MHFA. “Currently, I believe that we are the fourth-worst in the nation.”

The 2020 State of Housing in Black America report , commissioned by the National Association of Real Estate Brokers, revealed that in 2019, 73.4% of White households owned their own home. In contrast, the report stated that only 42.1% of Black households owned their homes. In 2020 the national gap between Black and White homeownership was 26%.

In Minnesota according to 2019 American Community Survey (ACS) data, White/non-Latinx individuals own homes at a rate of 76.9% compared to Blacks who own at a rate of 25.3%, a homeownership gap of more than 50%.

“When we look at Minnesota having one of the highest homeownership rates in the nation but one of the largest homeownership disparity gaps, we need to think about how to tackle it,” Kier said. “The industry itself is not doing a good job of getting there and closing that gap, so Minnesota Housing is really stepping in.”

“In Minnesota the mortgage industry is serving the BIPOC communities at about 15%,” said Kier. “Minnesota Housing is serving the BIPOC communities at about 35%, so more than the industry average.”

Black community that same account profile would go to a loan and they would be denied,” said Akinola. “There’s a disparity in the approval between our White communities and our Black communities, so at Minnesota Housing we find that it’s very important that we bridge that gap.”

MHFA partners with lending partners, real estate agents and associations like the National Association of Real Estate Brokers, the Asian Real Estate Association, the Association for Gay and Lesbian Professionals to enhance their community engagement and reach as many marginalized groups as possible. best forex brokers in nigeria

“It’s such a blessing to have programs like this,” said Bolton.

CREDITS: Amudalat Ajasa / Minnesota Spokesman-Recorder

The post Homeownership disparities a Minnesota blight appeared first on National Association of Real Estate Brokers .

“Vestiges of segregation”: US homeowners fight deeds that exclude buyers based on race

Tue, 12 Jan 2021 01:29:00 GMT

When Rachel Rintelmann closed on her Washington-area home a few years ago, something caught her eye: a paragraph in her deed had been crossed out with a quick X, written in pen.

It restricted who could “use or occupy” the house, allowing “no person of any race other [than] the Caucasian race”.

“I chuckled because it felt so satisfying that I was buying this house that I wasn’t supposed to be buying,” Rintelmann, who is biracial, said by phone from her 1940s-era home in a Maryland community called Indian Springs.

Such clauses, known as restrictive covenants, have been unenforceable since 1948 and illegal since 1968. But there has never been a process mandated to systematically remove the offending language from property ownership documents.

That is starting to change, with several states passing new laws that make it easier for homeowners to redact restrictive covenants – but only if homeowners like Rintelmann, 37, take the initiative.

Through hours of research, she was able to identify at least 400 homes in her neighbourhood covered by restrictive covenants and assumes there are many more.

She and a few dozen neighbours were the first in their county to take advantage of a new Maryland law that removes filing fees and eases paperwork associated with redacting covenants.

Virginia, Florida and Washington state have also recently passed similar legislation, said Renee Williams, a senior staff attorney with the National Housing Law Project, a non-profit.

“There’s more cognisance of some vestiges of segregation in a way there hasn’t been before – and a need to remove those vestiges,” she told the Thomson Reuters Foundation.

Restrictive covenants and other restrictions “in large part” resulted in today’s lower levels of Black homeownership, said the National Association of Realtors, citing 2017 government data on white homeownership of nearly 73 per cent versus just 42 per cent among Black people.

Restrictive covenants, which most often excluded potential homeowners by race but also addressed religion, nationality and other factors, were very common during the first half of the 20th century, said Susan D Bennett, a law professor at American University in Washington.

“These things are everywhere, all across the country,” she said, noting they are a key root of the wealth gap that exists between white and Black Americans today.

But attention to the esoteric issue is rising, said Bennett, who is leading a pilot project in Maryland to help homeowners remove restrictive covenants.

“There’s been a gradual pickup over the last two to three years. And, of course, the Black Lives Matters movement this spring was responsible for an uptick in interest.”

While there is no national data on restrictive covenants, research at the city level has offered insight on their pervasiveness and long-term effects, according to the Mapping Prejudice project at the University of Minnesota.

In Washington, much of that work has to be done by hand, one document at a time, said Mara Cherkasky, a historian with historical research firm Prologue DC who co-founded the Mapping Segregation in Washington DC project in 2014.

“It’s very slow,” she said, estimating she has looked at more than 100,000 deeds. “That’s why we haven’t finished.”

But the results so far have been instructive, she said. Of the city’s 146,000 total lots, they’ve found restrictive covenants on more than 20,000, mostly against African Americans.

“This is the foundation of the American real estate industry and property ownership and how cities developed,” said Sarah Shoenfeld, Cherkasky’s colleague and project co-founder.

The impact has been profound and long-lasting, she added. “These were very specific mechanisms by which the city became racially segregated and stripped wealth from Black people,” Shoenfeld said.

That view is backed by the real estate industry, with the National Association of Realtors acknowledging the industry was “complicit” in such restrictions during the first decades of the 20th century.

At the time, the presence of Black families in white neighborhoods “was generally believed to have detrimental effects on property values and social order”, the association noted in a 2018 article .

For many communities, finding restrictive language in deeds can be enraging, said Maryland delegate Catherine M Forbes, the lawmaker who sponsored the state’s new law to help homeowners remove restrictive covenants.

The impetus behind the law came entirely from constituents, Forbes said in a phone interview. “They really wanted their deeds to reflect the community in which they lived and their own personal values,” she said.

The issue took on greater momentum last summer.

“Black Lives Matter happened, and there was an explosion of focus on the consequences of race as a systemic problem in our country,” recalled Tracey Broderick, a white homeowner in Silver Spring, Maryland, who had no covenant on her home.

The new national focus on race and injustice helped spur greater local interest in the covenants, she said.

Yet, in line with the US debate over other vestiges of past structural racism, like Confederate monuments, not everyone sees the benefit of simply removing restrictive covenants. Find out at the link if you can trust the online casinos of Mr. Bet to players in 2022. The site has only detailed and honest reviews, step-by-step instructions on how to make money at the casino on games and betting. Mr Bet is a new level of casino in the world of gambling.

“I am in favour of such a movement if it is conducted by groups that are going to take concrete steps to actually desegregate the neighborhoods from which these deeds excluded African Americans,” said Richard Rothstein, a fellow at the Economic Policy Institute.

“I am not in favour of movements to erase evidence of segregation from view, without any corresponding effort to undo its consequences, so that future generations will not have to be reminded of unpleasant realities,” he said in emailed comments.

Rintelmann noted that the discussions around restrictive covenants turned into a “community-building experience” that included neighborhood chili cookouts and informational booths to build awareness.

Broderick’s neighbours are now working with a small team led by Bennett, the law professor, to map their findings and create a toolkit so homeowners elsewhere do not need a lawyer to redact restrictive covenants.

That work has also prompted ideas for post-pandemic walking neighbourhood tours, homework assignments at the local school and even a public marker.

And they are using the issue as a springboard to look at other forms of racial injustice.

“We want to look at racial profiling [and] seeing how we can use this history of covenants to look at how settlement patterns have developed,” Broderick said.

“Of course, we all feel these [covenants] are offensive – but what do we do now?”

CREDITS: Carey L. Biron / SIGHT Magazine

The post “Vestiges of segregation”: US homeowners fight deeds that exclude buyers based on race appeared first on National Association of Real Estate Brokers .

Past Housing Policies, Practices Contribute To Iowa’s Racial Homeownership, Wealth Gaps

Wed, 30 Dec 2020 21:10:00 GMT

White Iowans own their homes at nearly three times the rate of Black Iowans, one of the biggest racial homeownership gaps in the country . Nationally, this gap is wider than it was 50 years ago , because discriminatory housing policies and practices of the past and present are still hurting Black families and their ability to build generational wealth.

Bobbretta Brewton remembers when the city of Des Moines bought her family’s house to destroy it.

“I was born and raised here. And when I was 8 years old, our family was impacted by urban renewal,” Brewton said. “And it was a home that my grandmother worked really hard to buy and own, and then share with my father’s family, which included me.”

Urban renewal programs and the construction of Interstate 235 in the 1950s and 1960s cleared what city officials considered to be blighted areas or slums. But they were also neighborhoods that were home to a large share of Des Moines’ non-white residents and Black-owned businesses.

Center Street, a hub of economic activity and entertainment for Black Des Moines residents, was wiped out by highway construction . The Oakridge and River Hills urban renewal projects, as well as I-235, displaced about 1,700 families , many of them Black.

“And then when they took the houses, you didn’t necessarily get what your house was worth,” Brewton said. “So you didn’t really get a comparable one.”

The Polk County Housing Trust Fund, for its “Undesign the Redline: DSM” project , dug up past newspaper reports of Black Des Moines homeowners being forced to settle for a much smaller house or to start renting. Racial restrictions in real estate and renting made it even harder for Black families to find a new place to live.

After the move, Brewton had to go to a new school, where the teachers wrongly assumed she didn’t know how to read and put her in a lower level class. Brewton said this also broke up her close-knit neighborhood.

“There was no sensitivity to try to get give people the option of going together and remaining neighbors in some way,” Brewton said. “So everybody scattered, and we lost that feeling of connectedness.”

How discriminatory policies and practices led to disinvestment and decline

Before these areas were cleared for urban renewal and the highway, federal policies and local real estate practices set Black and low-income neighborhoods up for disinvestment and decline .

Race-restrictive covenants written into deeds of houses in the early 1900s forbade homeowners from selling or renting to various minority groups, keeping some neighborhoods all white. When the federal government started subsidizing home loans in the 1930s, it created maps for cities—six in Iowa— that said lenders shouldn’t approve mortgages in certain areas , especially those with more non-white, immigrant and low-income residents.

“Virtually all African-American neighborhoods, regardless of their socioeconomic status, were designated red,” said Julian Maxwell Hayter, a professor and historian at the University of Richmond who also grew up in Des Moines.

Red areas were considered “hazardous” for making home loans, and the description for why downtown Des Moines was marked red included the phrase, “there are many colored people ” (these documents and maps were digitized by the Mapping Inequality project ).

Hayter said redlining led to systematic disinvestment in these neighborhoods in the 1940s and 50s.

“It’s not just that people weren’t able to get mortgages. It’s that those who were upwardly mobile were disallowed from moving into neighborhoods like their white or immigrant counterparts. So they are in many ways compressed into smaller and smaller enclaves.”

This cemented the racial and economic segregation of cities across the Midwest, including Des Moines.

Hayter said at the same time, white families fled cities for the expanding suburbs, and wealth and jobs followed. Black families were mostly denied the opportunity to move to the suburbs, even when they could afford it.

“So by the 1960s, redlining, urban renewal, slum clearance and freeway construction begin to bring together what we now know as the inner city,” Hayter said. “It wasn’t created by choice. It was created by design.”

The federal government outlawed redlining in 1968 with the Fair Housing Act but didn’t fix the problems it created.

Hayter, born in 1975, said he grew up in a redlined neighborhood in Des Moines even though his parents had good jobs working for John Deere and Blue Cross Blue Shield.

“We were a solid middle class family,” Hayter said. “And I had to live in proximity to poverty, in large part because of these longstanding policies.”

Impact of discriminatory housing policies still clear today

The effects of these policies are clear around Good Park, just north of downtown Des Moines. That’s according to Kendyl Larson, the director of research and planning at the Polk County Housing Trust Fund, who said the area was redlined and affected by highway construction. Eager to learn more over online roulette games? Our friends from https://exycasinos.com/casino-games/online-roulette/ are going to assist with this task. Look at the review about real money roulette games. These specialists talk about vital points of playing roulette online fore real money: game types, the return to player percentage, providers, as well as the rest of the features.

“We see that today in the impact of the property conditions and the property values,” Larson said. “They’re much lower in this general area because of that continued disinvestment over time in the specific neighborhoods that were once redlined.”

Nearly a century after redlining began, the areas in Des Moines with the lowest property values today mostly line up with the “hazardous” areas of the risk assessment maps of the 1930s. The exceptions are areas like the Sherman Hill and the East Village neighborhoods that are undergoing gentrification.

The persistent segregation and lower property values mean Black homeowners often can’t build as much wealth as white homeowners.

Larson said racial discrimination is still happening in housing, but more at the personal rather than the policy level. She said some realtors still steer people of different races to see houses in different parts of Des Moines, and there is racial discrimination in renting as well.

And in Polk County, Black mortgage applicants are denied loans at more than twice the rate of the county average.

“If you can’t get a mortgage for a home, then you’re not able to buy a home, which means you’re unable to build that wealth,” Larson said.

Racial homeownership gap and wealth gap persist

Nationally, the average white family has 10 times the wealth of the average Black family.

“One of the major ways in the US to generate what we would call generational wealth is through homeownership,” Hayter said. “Well, programs precluded racial minorities from homeownership, at least in any viable way, in the mid-20 ^th century.”

Homeownership isn’t the only factor that contributes to this massive racial wealth gap. Other factors include disparities in education, employment and wages.

But Hayter said families that own a home are typically in a better position to get through hard times. And it helps them build wealth that they can help pass down to their kids, such as helping them pay for college or a down payment for a house of their own.

“I think even myself and my Black friends, we have not had generational wealth built for us where you can see with a lot of white families in Iowa,” said Zakariyah Hill, co-founder of The Supply Hive and a student at Iowa State University.

Hill said white families in Iowa are more likely to pass down farmland or houses.

“However my family, other families, start just working from a young age, and that’s all they know how to do,” Hill said. “People are really living paycheck to paycheck so they can survive to see another day.”

She said there are a lot of barriers to starting to build that generational wealth.

“It’s hard to start that cycle for Black families because it was never meant for us to see the cycle or to start at all,” Hill said.

She hopes to own a home in the future. And Hill said there should be more government support for people to get into housing and stay there, and to ensure they can pay their utilities.

Those who want to work to shrink the racial homeownership and wealth gaps say understanding this history is an important first step, but it will take targeted policies and investment to fix decades of damage.

CREDITS: Katarina Sostaric / Iowa Public Radio

The post Past Housing Policies, Practices Contribute To Iowa’s Racial Homeownership, Wealth Gaps appeared first on National Association of Real Estate Brokers .

The Benchmark: Episode six

Tue, 15 Dec 2020 22:00:00 GMT

For this episode, Blend CEO and co-founder Nima Ghamsari met with Antoine Thompson , executive director of the National Association of Real Estate Brokers (NAREB), the largest and oldest organization of Black real estate professionals in America.

The two had a wide-ranging discussion: how to narrow and eliminate the nearly 30% gap between Black and white homeownership in America and how technology can help promote a more equitable ecosystem. They also dispelled some common myths about financial eligibility for buying a home and discussed how technology can help reduce the cost of homeownership.

Explore three takeaways from the video

1. Broadening access to homeownership in America benefits everyone

NAREB was founded in 1947, just a few years after U.S. soldiers returned from the battlefields of World War II to restart their lives in America.

“Our soldiers were coming home and there were government benefits available to them,” explained Antoine. “One was to go to college and the other was the ability to purchase a home with no money down. Unfortunately, that program was not available to African Americans.” That was due to racial disparities in the implementation of the federal legislation, segregated neighborhoods in many parts of the country, redlining by lenders, and other discriminatory practices.

“Today there is a Black homeownership rate in the U.S. of 47% and a white homeownership rate of 76%,” Antoine said. “Until that gap is eliminated, we’ll keep pressing on.

“But there are 2.5 to 3 million African Americans who are mortgage-ready in this country,” he added. “They have low debt-to-income ratios, they’ve got a good job, they can pay a mortgage. We have to educate people about the benefits of homeownership, how it strengthens families, how it builds wealth.”

For Nima, NAREB’s decades-long advocacy for broadening access to homeownership not only aligns with Blend’s mission, but also resonates in a very personal way. He told the story of his parents, who emigrated to America from Iran when Nima and his sister were children. For his parents, the ability to buy their first home was an economic game-changer.

“Buying a home in Cincinnati completely changed their financial wellness long-term,” Nima said. “It became the asset that fueled their retirement. There’s just a lot of good things about homeownership.”

2. State-of-the-art technology can help narrow the homeownership gap

Antoine and Nima agreed that technology can play a key role in helping to narrow the homeownership divide, whether that’s by promoting the benefits of buying a home via social media channels or delivering state-of-the-art digital capabilities such as Blend’s unified platform. Blend’s platform helps lenders provide a fast and frictionless application experience to consumers, reducing the complexity of applying for a mortgage.

“One of the reasons I’m so excited to be here today is because you all are a tech company and we need help,” Antoine said. “We need partners like Blend and others who can help us with an aggressive digital strategy to promote homeownership. We need to be on YouTube, promoting homeownership there. We need to be on Instagram and doing little videos on TikTok and really showcasing young people who have become homeowners with the message: if they did it, so can you.”

“I couldn’t agree more,” responded Nima. “There are a lot of real estate videos on TikTok now; it’s really cool that people are learning about the space.

“Let’s figure out how to get those 2 ½ million people (who are mortgage-ready) to have their homebuying power in their pocket so they can walk around every day and know what the financial system can do for them,” Nima said. “Finding a way to get that knowledge in their pocket — whether it’s via social media, their mobile app with their bank, or whatever it may be — is critically important so they can learn to take advantage of the system in a good way.”

3. Financial literacy is an excellent way to open the door to homeownership

During their conversation, Antoine and Nima chipped away at some of the common myths about financial eligibility for buying a home. They also talked about how innovations in tech can help lower the overall expense of buying a home.

“Many Americans, not just African Americans, believe that you need 20% down to buy a house,” said Antoine. “That’s simply not the case.”

“There have also been a number of surveys done over the years showing that people think they need an 800 FICO score to get a house. That’s simply not the case as well. But if you’re young or from a community where you’re not a second-, third-, or fourth-generation homeowner, where do you get the right information from? We have to give people the knowledge and then show them how to apply the knowledge so they can advance themselves, their community, and others.”

Nima agreed and mentioned how his parents were able to find a lender that offered them favorable terms, which included a low down payment and a low rate through an FHA home loan. “It was obviously super important that they were able to find that, but not everyone knows that,” he said.

“And the video I was watching on TikTok that I mentioned earlier was about this concept of putting 4% down,” added Nima. “But the only problem was the other fees in getting a mortgage. There’s an inspection, an appraisal, title insurance, and homeowner’s insurance.

“As those things start to get added on, even for a house that you’re paying 3% or 4% down, it’s going to end up being like 7% or 8% all in, including closing costs and all those fees. As we find ways to lower that through technology — through better distribution, through better quality of service — we can dramatically impact how much people have to put up front to get a home. And that is another real opportunity.

“I’m an optimistic person by nature,” added Nima. “Although I see the statistics on where the gap is, I also see a lot of action. Whether it’s through technology, education, government policies or new industries being created, I see a lot of action. And that makes me really hopeful.”

The post The Benchmark: Episode six appeared first on National Association of Real Estate Brokers .

Along with the social justice aspects of fostering diversity in real estate, it makes sense from a financial standpoint as well

Tue, 15 Dec 2020 20:30:00 GMT

Along with the novel coronavirus, diversity and inclusivity are among the most notable social topics of the 21st century. Our world and its 7.6 billion inhabitants are more diverse than ever, yet inequality and racial discrimination are unfortunately rampant, in various forms. The real estate industry is no exception.

In fact, the problem of inequality exists within virtually every facet of real estate, including buyers, sellers, and realtors alike. Minority groups are especially underrepresented among licensed real estate agents: according to the National Association of Realtors (NAR) , in 2017, only 20% of their membership identified as a race other than white.

This obvious lack of inclusivity can serve as a roadblock for many prospective property buyers, who may not feel represented by real estate professionals. While on the surface the law seems to favor minority buyers, who are protected by the Fair Housing Act , the reality is much more complex. Indeed, the United States Department of Justice claims “discrimination in housing continues to be a problem” within the national real estate market as a whole. What’s more, various forms of so-called “hidden discrimination” exist as well, especially in regards to race.

As housing inequality is a systemic problem, what can be done? Let’s take a look at how we got here, and whether our nation’s courts will need to intervene to help stem the continued lack of diversity in housing and real estate.

The Face of Modern Real Estate

The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, prohibits discrimination by various housing providers, including realtors and financial lending institutions, on the grounds of race, color, religion, sex, and more. Those who believe that they were unfairly discriminated against during a housing search may choose to seek legal recourse. For instance, an individual can make an official complaint to the Department of Housing and Urban Development (HUD) , or he or she can even elect to file a lawsuit.

In seeking legal recourse for alleged housing discrimination, the affected individuals may directly name sellers and/or real estate agents in the lawsuit or complaint. And it should be noted that a full 87% of home buyers purchase their property with the assistance of a real estate agent or broker . If a real estate deal doesn’t go through, and the prospective buyer believes that discrimination was a factor, they may determine that their real estate agent is liable for some of the damages.

Embracing Diversity on a Large Scale

The issue of inequality in real estate is so prolific that industry leaders have begun to speak out in recent years. Along with a lack of opportunity for minority home buyers, the world of commercial real estate is also woefully lacking, reports Collete English Dixon , executive director of the Marshall Bennett Institute of Real Estate at Chicago’s Roosevelt University. Further, the coronavirus pandemic, and subsequent economic recession, only serves to compound the problem.

“This recession will make it harder on Blacks and people of color because it’s just the way the system has been,” English Dixon told Nareit in September 2020. Yet she also believes that there are big changes on the horizon, with social justice as the catalyst. By hiring a more diverse set of professionals on the seller and broker end of the industry, equality in the realm of real estate may be achievable soon. It might be quite difficult for newbies to select a reliable mobile casino platform. Casino specialists from https://casinomech.in/mobile-casino/ wish to help with that challenge. Check out their posts about Indian mobile casinos and find out which characteristics are significant in online mobile casino platforms. What’s more, their experts talk about whether it’s more convenient to play pokies on a website or a phone application. With their experts’ help your phone gambling experience will become a lot more fun.

From both a legal and social justice standpoint, therefore, real estate management companies should prioritize diversity in their hiring processes and company culture. Cultivating an inclusive, dynamic workplace culture is likely to result in fewer legal road bumps, as well as greater employee retention, productivity, and overall satisfaction. Additionally, those traits are likely to trickle down to a real estate company’s customer base.

At the Intersection of Diversity and Economics

On a systemic level, diversity and equal opportunity in the workplace connects to virtually every aspect of life, including fair access to housing and real estate investment opportunities. Diversity is now directly intertwined with a business’ bottom line , impacting its financial future, for better or for worse. Real estate investors who fail to diversify their business practices may miss out on revenue and expansion opportunities. But it is the legal ramifications of inequality that are the costliest to a real estate company or an independent broker.

Along with the social justice aspects of fostering diversity in real estate, it makes sense from a financial standpoint as well. With penalties that could include fines, attorney fees, and punitive damages, housing discrimination lawsuits are a costly endeavor for everyone involved. Indeed, a lawsuit can make or break a fledgling real estate company, especially when the plaintiff has due cause for recourse on the grounds of discrimination.

Key Takeaways

Brokers and realtors who are on the receiving end of a HUD discrimination complaint or similar lawsuit may lose customers and gain an unsavory reputation. But the real damage is an overarching, societal one, wherein minority populations have fewer opportunities, whether they aspire to become a licensed real estate professional or first-time homebuyer.

The post Along with the social justice aspects of fostering diversity in real estate, it makes sense from a financial standpoint as well appeared first on National Association of Real Estate Brokers .

Black Millennials fueled a surprising 2020 home-buying surge for African Americans

Tue, 08 Dec 2020 03:17:00 GMT

New York (CNN Business) Owning a home was never a priority for Kenyan immigrant Lynne Poole or her husband, Aaron prior to 2020. The newlyweds, like many Millennials , enjoyed the lifestyle that came with renting an apartment in a major city — in their case, Denver.

state of emergency

The post Black Millennials fueled a surprising 2020 home-buying surge for African Americans appeared first on National Association of Real Estate Brokers .

Initiative Targets ‘Disproportionate’ Challenges of Black Homeownership

Wed, 02 Dec 2020 20:17:00 GMT

Black homeowners face more foreclosures, more tax liens, and higher unemployment rates than their non-Black counterparts—a New York City-based project powered by data and artificial intelligence revealed these racial disparities in homeownership. The collaboration between SAS Advanced Analytics and Center for NYC Neighborhoods (CYNC) , which advocates for aspiring and existing homeowners in the city, occurred at a “critical time, as the COVID-19 pandemic continues to disproportionally affect Black communities,” the collaborators said in an announcement .

“Our collaboration with SAS demonstrates the power of analytics to unearth trends that can be used to empower Black communities at a time of urgent discourse around systemic racism,” Christie Peale , CEO/Executive Director of the Center for NYC Neighborhoods said. “The findings will be used by the Center’s Black Homeownership Project to design new programs and to advocate for policy changes that can help to close the racial wealth gap.”

The center launched the Black Homeownership Project as a way to help advocate for policies that break down barriers to Black homeownership and close the racial wealth gap, according to Peale.

The project has revealed that in the decade following the 2008 financial crisis, Black homeownership in New York City dropped considerably: “There were at least 20,000 fewer Black homeowner households in 2017 than there were in 2005. With the devastating economic impacts of the COVID-19 pandemic, compounded by historic barriers to Black homeownership, this rate could drop even more.”

Contributors to the project included data scientists and analytic volunteers—including many members from SAS’ employee diversity and inclusion groups— who joined the Center to analyze NYC housing data. Some of them express a personal investment in the initiative.

“I’ve seen some of this firsthand,” explained SAS Project Manager Sheri Grice . “Growing up, I saw for myself I was not going to be a homeowner in New York . It was not attainable. From just seeing my peers and my peers’ parents and what they went through, I knew the only option for me was to leave.”

(Grice’s story is part of a multimedia news release available here .)

The study found that neighborhoods with a higher proportion of Black and Hispanic homeowners have lower home values even when home age and square footage are the same. It also revealed that the total cost of acquiring home purchase loans is higher for Black and Hispanic borrowers than for other races, even when controlling for differences in down payment and home value.

The collective and ongoing research, Peale says, will be used to promote targeted, data-driven policies that could reduce some of the roadblocks faced by communities of color.

“[It] demonstrates the power of analytics to unearth trends that can be used to empower Black communities at a time of urgent discourse around systemic racism,” he said.

He added that financial institutions will be able to make use of the project’s AI-powered data analysis.

“Financial institutions play a critical role in closing the racial wealth gap, and these findings could support their efforts to implement more data-driven policies,” read a release from the CYNC. “Through partnerships with nonprofits and other organizations, financial institutions can provide key lending decision data to identify similarities and disparities among various groups. And by applying advanced analytic technology to these important datasets, organizations like the Center can more quickly identify inequalities and take action to protect these communities.” Le Kamagra est disponible économiquement. Vous pouvez acheter Kamagra en ligne sans ordonnance en France depuis peu https://pilemeds.com/commander-kamagra-moins-cher.html .

CREDITS: Christina Hughes Babb / DS News

The post Initiative Targets ‘Disproportionate’ Challenges of Black Homeownership appeared first on National Association of Real Estate Brokers .

Keeping it Real: The Festering and Imminent Re-Hollowing of Black Homeownership

Wed, 02 Dec 2020 18:16:00 GMT

“Foreclosure prevention measures, data collection, and reporting must be prioritized to stave off preventable foreclosures.”
-National Consumer Law Center

Amid this raging coronavirus pandemic, Black Americans continue fighting for equity at every turn; chief among these battles is the quest for economic security.

The foundation of such security for Blacks as with most Americans, is deeply rooted in the quest for homeownership as a building block for inter-generational wealth—an aspect of the American dream that remains as illusionary for many Blacks today as the inter-generational quest for the franchise.

Despite historical and institutional barriers to homeownership, however, Black families continue to defy the odds and purchase homes. Many attained homeownership despite redlining that persists in at least 61 metro areas across the country according to recent analysis of home Mortgage Disclosure Act records by The Center for Investigative Reporting and published by reveal.com in 2018. Analysts reached this conclusion even after controlling for applicants’ income, loan amount and neighborhood.

Redlining is the historical and systematic denial of various services including mortgage loans and insurance to residents of disadvantaged, poor and minority communities by federal government agencies, local governments, and/or the private sector. In instances where out-right denial of a service does not occur, redlining covertly prevails for Blacks via the charging of higher rates for services other communities can purchase at much lower costs. Such disparate charges have left Black homeowners more vulnerable when the economy takes a turn for the worst. Consider the meltdown of the 2008 housing market. It is well known Blacks were disproportionately impacted by the resulting foreclosures and lost more than 240,000 homes across African American communities nationwide.

Today, due to the lingering impact of COVID-19, Black homeowners must once again steel themselves for what lies ahead.

During the early days of the pandemic, Congress passed the CARES Act which prevented short-term foreclosure risks for homeowners with federally backed loans. Now, many homeowners, especially African Americans, are worried about what will happen when the forbearance period expires on Dec. 31.

The forbearance guidelines in the CARES Act allowed homeowners impacted by the coronavirus to postpone mortgage payments for up to a year. It further specified loan servicers could not require a lump-sum payment after the forbearance period expired to protect borrowers from immediate impacts as the effect on people’s lives and the economy could be monumental. According to the mortgage data provider Black Knight, in Sept. 3.6 million homeowners remained in pandemic-related forbearance across the country including 17% of lower-income homeowners, disproportionately impacting communities of color. The number of minorities behind on payments in Sept. doubled that of Whites.

Earlier data had already indicated a disproportionately high percentage of Blacks and Latinx homeowners faced economic hardship during COVID-19 and sought assistance from their mortgage companies. However, for every one Black homeowner who sought forbearance, at least four others simply missed their payments without forbearance arrangements. In addition, the Census Household Pulse Survey found that among those behind on their mortgages, Black and Latinx households are much less likely than Whites in similar positions to access potentially home-saving relief.

Of course, this is not surprising and for Black homeowners deferred mortgages account for only part of the challenges they face. Economic disparities faced by Black homeowners even before the forbearance makes weathering the current crisis more challenging, largely due to modern day redlining as evidenced in a recent report by the MIT Golub Center for Finance and Policy. It found Black borrowers pay $13,464 more over the life of a home loan. Higher interest payments, mortgage premiums and property taxes cost Black homeowners more than $67,000 in retirement savings.

These homeowners also pay about $250 more annually in interest charges for home purchase loans (their average interest rate is about 12 basis points higher than it is for Whites); they have fewer options to refinance their mortgages and are more likely to be turned down for refinancing requests. This results in their paying about $475 per year more than White homeowners. Finally, when it comes to property taxes, data shows Black homeowners pay 13% more than White homeowners in the same area. The study affirmed that if these extra mortgage costs were eliminated for Black homeowners, the $130,000 wealth gap between Black and White Americans at retirement would be reduced by half.

In addition to this, mortgage lenders like JPMorgan, US Bank and Wells Fargo and potentially others, have tightened standards on home loans. What is most egregious about this in relation to the Black community is the role these and other lenders are supposed to be playing in helping Blacks achieve homeownership.

The nation’s financial system for housing, the Federal Housing Finance Agency consists of three branches —Fannie Mae, Freddie Mac and their little-known sister, the Federal Home Loan Bank (FHLB).

FHLB is a government sponsored enterprise founded to support mortgage lending and related community investment. It is composed of 11 regional banks (including the Federal Home Loan Bank of San Francisco that serves California and other west coast states), and about 6,800-member financial institutions. However, the FHLB, like so many other federal programs, has fallen short of its mandate.

In 2018, reavealnews.org identified eight lenders purportedly not serving people of color. Included among them were six who are member financial institutions of the FHLB system supposedly committed to serving low income communities.

TD Bank is one of them. According to the report, the bank turned down 54% of Black homebuyers and another, Capital One (no longer a mortgage lender), also largely turned down applicants from the Black community.

Today, we must ask what will be done to stave off the decimation of Black homeownership as many of these homeowners are positioned to bear the brunt of a dysfunctional and racist nation once again looking at what it has wrought upon its citizens.

Will Black homeowners again be sacrificed at the altar of capitalism and greed or will the new administration have courage to break the mold, propose and implement the solutions needed to avoid disaster for Black homeowners in forbearance? Black Americans should not wait to raise their voices on this important issue. Now is the time to call your state and federal representatives to demand a proactive solution to this looming crisis. You can buy discounted callgear at the highest level at low prices.

Of course, this is just my opinion. I’m keeping it real.

CREDITS: S.E. Williams / Black Voice News

The post Keeping it Real: The Festering and Imminent Re-Hollowing of Black Homeownership appeared first on National Association of Real Estate Brokers .

Black homeowners lose about $14K over the life of a mortgage

Mon, 02 Nov 2020 22:36:00 GMT

Black homeowners lose an average of about $14,000 over the life of a mortgage and about $67,000 in retirement savings due to higher interest rates, according to the National Association of Real Estate Brokers eighth annual State of Housing in Black America report.

The analysis of 2019 HMDA data found that Black borrowers locked in an average mortgage rate of 4.44% for conventional loans — 15 basis points higher than white borrowers. Though not as stark, Black consumers paid higher average interest rates across all loan types compared to their white counterparts.

“The reality is white homeowners have gotten very specific benefits over time that accumulate,” David Dworkin, president and CEO of the National Housing Conference, said on a NAREB-hosted call with fair housing advocates this week.

“One of the biggest ones is the ‘daddy down payment loan.’ If you’re a multigenerational homeowner, your family has the wealth and resources to help you with your down payment,” Dworkin added. “This is not rocket science and this is not special treatment. This is saying we have given special treatment, we just want everybody to receive it now.”

Multiple advocates posited that bridging that rift would require governmental intervention. Otherwise, it’ll be more of the same: incremental bumps in homeownership during good economic times without real change and racial discrepancies holding steady.

“Let us be absolutely clear as a bell: the federal government in public policy created, aided and abetted the racial wealth and homeownership gap in America,” Marc Morial, president and CEO of the National Urban League, said on the call. “ The federal government is an essential element in trying to rectify and correct it. What we know from the last 40 years of public policy is it will require intentionality, not simply generalized policies.”

The repercussions of the coronavirus unevenly affected housing for BIPOC communities. The fallout of unemployment from COVID-19 and possible subsequent lockdowns threaten to spread the racial wealth gap even further. That impact can already be seen in certain markets.

“The pandemic, if anything, showed the ugly face of the real economic divide in our country,” Rep. Rashida Tlaib, D-Mich., said on the call. “Close to 13% of my Detroit residents reported being evicted. That’s 88,000 folks without a home in one year. Michigan lost more Black homeownership than any other state in the country.”

The racial divide in homeownership widened in the third quarter of 2020 as rates fell across all demographics, according to the Census Bureau.

The Black homeownership rate dropped to 46.4% after reaching a 16-year high of 47% in the second quarter. While it still marks an improvement from 42.7% year-over-year, Black homeownership has never hit 50%.

The overall U.S. homeownership rate crept down quarterly to 67.4% from 67.9% and while rising annually from 64.8%. Following the same pattern, white homeownership went to 75.8% from 76% in the second quarter and 73.4% a year ago, Hispanics went to 50.9% from 51.4% and 47.8% and all other races went to 58% from 59.3% and 56%.

CREDITS: Paul Centopani / National Mortgage News

The post Black homeowners lose about $14K over the life of a mortgage appeared first on National Association of Real Estate Brokers .

Why homeownership costs for Blacks are disproportionately high — and what can be done about it

Mon, 02 Nov 2020 22:20:00 GMT

Why homeownership costs for Blacks are disproportionately high — and what can be done about it

African-American homeowners pay hundreds of dollars more per year in mortgage interest and mortgage insurance premiums than White homeowners, a “Black tax” on homeownership that intensifies the nation’s wealth gap.

That’s according to research by Ed Golding, executive director of the Massachusetts Institute of Technology’s Golub Center for Finance. “In aggregate, Black families pay more,” Golding says.

In a report issued this month , Golding and his co-authors examined inequities in the U.S. housing market and calculated the costs to Black borrowers. Citing data from two federal sources — the Home Mortgage Disclosure Act and the American Housing Survey — they say Black borrowers had an average interest rate of 4.62 percent in 2017, compared with 4.30 percent for White borrowers.

That equates to an additional $743 a year in interest payments, based on a loan amount of $225,000.

As for mortgage insurance, Black homebuyers on average make smaller down payments than White buyers. Lenders require borrowers who make down payments of less than 20 percent to buy private mortgage insurance , a coverage that protects lenders in the event of default. Those premiums add to the cost of a loan. Are you searching for online casinos that accept PayPal? On this page Exycasinos.ca experts reviewed reliable PayPal gambling sites that take deposits and cashouts through PayPal.

While 62 percent of White homeowners pay mortgage insurance, fully 88 percent of Black homeowners must buy the coverage. Golding, a former head of the Federal Housing Administration, says that extra cost equates to $550 a year.

Many African-American homeowners have FHA mortgages, a type of loan with looser requirements for down payments and credit scores but that come with pricey mortgage insurance premiums.

Explaining the wealth gap

Golding also reports that Black homeowners pay more in property taxes, to the tune of $390 a year on average.

While a few hundred dollars here and there might not seem like a big deal, they add up over time, Golding says. In all, a Black borrower pays an average of $13,464 in extra costs over the life of a loan, money that can’t be directed to things like emergency savings or retirement accounts.

“These inequities make it impossible for black households to build housing wealth at the same rate as White households,” Golding and his co-authors write.

The racial gap in the U.S. housing market is a wide one. Just 47 percent of African-Americans owned homes as of the second quarter of 2020, compared with 76 percent of Whites, according to the U.S. Census Bureau.

In another sign of the enduring divide, Black mortgage applicants are twice as likely to be rejected as White borrowers, according to a report issued Tuesday by the National Association of Real Estate Brokers, a group of African-American real estate professionals.

“The bias in our markets is not a bug but a feature,” the 2020 State of Housing in Black America report says. “They were built that way and intended to operate in a discriminatory fashion. They will continue to do so until we make structural, systemic, and cultural changes.”

An end to ‘risk-based pricing’?

Both Golding and Donnell Williams, head of the National Association of Real Estate Brokers, point to a potentially contentious solution to the Black tax. They call for reining in “risk-based pricing,” the process by which lenders set rates based on borrowers’ odds of default.

In the U.S. mortgage market, the best deals go to borrowers with credit scores of 740 or higher and down payments of 20 percent or more. As borrowers’ credit scores fall and down payments dwindle, borrowing money grows more expensive.

Golding says it’s overkill. “We do too much risk-based pricing,” he says.

For instance, he says, Black borrowers have been disproportionately shut out of the recent refinancing boom. That’s because African-Americans have lost their jobs at a higher rate than White workers. Black unemployment was 12.1 percent in September, compared with 7 percent for White Americans.

Golding’s solution? For refinances where the borrower isn’t taking cash out, lenders shouldn’t verify employment. “For rate and term refis, there should be no re-underwriting of employment and income,” Golding says.

It’s unclear that regulators and lenders would embrace that suggestion. Skeptics say giving the same deal to borrowers regardless of their risk is akin to auto insurers charging the same rate to one motorist with an unblemished driving record and another with a DUI.

But Golding and Williams says policy changes are needed to narrow the stubborn gaps in homeownership and wealth. Black families often lack the intergenerational wealth that allows parents and grandparents to pitch in with a down payment.

“We don’t have enough money for a 20 percent down payment,” Williams says.

That means Black borrowers must pay for private mortgage insurance, or PMI, a costly addition that can derail a would-be buyer’s dream of homeownership. Williams recently worked with a buyer who faced that situation.

“Once that PMI calculation came out, the payment went up another $250, and he was out of the game,” Williams says.

What you can do: Overcoming the wealth gap

True, there’s not much an individual buyer can do to fight systemic inequities. But there are ways for borrowers to tilt the mortgage game in their favor. Four strategies:

CREDITS: Jeff Ostrowski / Bankrate

The post Why homeownership costs for Blacks are disproportionately high — and what can be done about it appeared first on National Association of Real Estate Brokers .

Bank programs seek to widen the path to Black homeownership

Mon, 02 Nov 2020 21:51:00 GMT

When Delmar Freeman began shopping for a home last year, he knew the biggest hurdle would be cobbling together enough money for a down payment.

The post Bank programs seek to widen the path to Black homeownership appeared first on National Association of Real Estate Brokers .

4 Reasons Why Home Ownership Is Still a Fantastic Investment

Mon, 02 Nov 2020 21:05:00 GMT

Out of darkish occasions like the widespread and tragic lack of life we’ve endured in the course of the coronavirus pandemic there has to return some good.

In spring 2020, the real estate business, like so many others, was impacted by uncertainty and a nationwide shutdown that saved us from doing our jobs. However we collectively confronted this with a resilience that left us much more prepared to assist consumers and sellers make a transfer. Our strategies for itemizing and exhibiting homes, assembly with purchasers and signing contracts drastically modified as soon as we had been capable of conduct business . However just like the entrepreneurs we’re, we discovered a means.

Theres additionally been a noticeable change in our consumers’ and sellers’ desires and wishes. Widespread working and education from home has meant that many owners all of a sudden really feel cramped of their house and wish designated areas for each work and college. Others are considering completely working from house and now have the choice to work from wherever.

Real estate leaders have been working time beyond regulation to attempt to predict the way forward for our business and decide the place we are able to innovate throughout and after the pandemic. And whereas a lot uncertainty nonetheless exists, theres one factor were all positive of: Proudly owning a house remains to be a improbable funding. Listed here are 4 the explanation why.

1. Safety when rental charges skyrocket

As a house owner, you shouldn’t anticipate to see the worth of your house rise instantly and even over the brief time period, however it is extremely probably that your house will admire over the long term. That is when endurance is a advantage. And naturally, that worth is dependent upon when and the place you buy your house, one thing a certified actual property skilled will take into account when guiding you in your search.

The worth is much more evident while you examine the price of renting versus proudly owning a house over a few years. Add to that the tax benefits that historically include proudly owning actual property and theres no query that proudly owning a house is a great funding.

2. Working from house could be everlasting

Our world has drastically modified this yr and so, too, the view from our places of work. Firms are analyzing choices to maintain their workforce distant and reduce their bodily footprint whereas making their organizations extra engaging to staff who’ve been asking for this flexibility. That makes a cushty house with house to work and reside much more crucial and provides one other vital worth to proudly owning your personal home.

3. The sudden attraction of suburbia

Alongside those self same traces, staff could now not think about an extended commute when discovering a spot to reside. Many city markets have witnessed a transparent migration to the suburbs as metropolis dwellers begin to see the attraction of suburbs and extra inexpensive housing.

This actually doesn’t imply that the lots will abandon in style downtown neighborhoods, however it may imply an growth of suburban communities. This may in flip put a better precedence on mass transit initiatives and new developments supporting these suburban neighborhoods, all of which provides to the attraction of proudly owning a house.

4.Funding and emotion

Not solely is it a strong funding in your future and a spot to unfold out, however having a home can even pay you again. Must you buy extra properties sooner or later, your home could be a rental property, including considerably to your monetary portfolio.

All of those factors think about the monetary affect of shopping for a home, however not often will we speak concerning the pure emotion of proudly owning a house. My mother and father emigrated from Poland and labored extremely onerous to purchase a home and safea cushty future for our household. Im all the time grateful to know that younger People nonetheless see large worth in shopping for a home and affiliate the identical sense of satisfaction and emotions of economic achievement in doing so. Thats why actual property professionals will proceed to work onerous daily to open doorways for consumers and sellers everywhere in the world.

CREDITS: Chronicle Reporter / The Black Chronicle

The post 4 Reasons Why Home Ownership Is Still a Fantastic Investment appeared first on National Association of Real Estate Brokers .

Historical Barriers and Structural Inequalities Still Account for Black-White Homeownership Gap

Tue, 27 Oct 2020 21:54:00 GMT

NAREB 2020 State of Housing in Black America (SHIBA) report shows how uneven mortgage lending practices, cumulative disadvantages and COVID-19 continue to obstruct growth of Black homeownership. Text SHIBA to 31996 to get the SHIBA Report!

Washington, DC – October 27, 2020 – The National Association of Real Estate Brokers, Inc.(NAREB) issued the 2020 edition of its State of Housing in Black America (SHIBA) report with a stark warning: Without major changes in public policy, restructured mortgage lending criteria, increased down payment assistance, and an extended forbearance period needed by homeowners experiencing severe financial burdens resulting from the pandemic, Black American homeownership will continue to lag and wealth building plans will remain delayed, severely diminished, or simply out of reach.

“Statistics oftentimes can be ignored or tabled. However, when the story is told through the eyes of young Black Americans experiencing the rigors of trying to purchase a home for a growing family, you clearly see that structural and institutional remedies are necessary,” said Donnell Williams, president of the National Association of Real Estate Brokers. “This year’s SHIBA report lays bare the difficulties.”

A sampling of the key findings in the SHIBA report, principally authored by Vanessa Gail Perry, MBA, Ph.D., Professor of Marketing, Strategic Management and Public Policy, George Washington University School of Business. include:

“These disparities persist because of systemic racism and disadvantage that have accumulated over time. At the same time, the industry has failed to acknowledge the opportunities presented by this market segment,” stated Dr. Perry.

The Black American wealth gap rests in large part on the ever-present institutional barriers Black Americans face at every step of the home buying process. While the second quarter 2020 Black homeownership rate of 47% reported by the U.S. Census Bureau represents a 16-year high, the rate lags more than 26 percentage points behind the non-Hispanic White rate of 76% for the same period.

The SHIBA report also includes recommendations designed to support the growth of opportunity for Black Americans to purchase homes and to maintain homes if they already own. A few key recommendations are:

“There are solutions. There are public and private sector remedies,” Williams said. “NAREB continues to advocate and push the envelope by heightening awareness in all sectors that homeownership not only increases the wealth building capacity of Black Americans, but also serves to strengthen the nation’s and communities’ economic outlook.”

These and other findings from the SHIBA report were discussed today at NAREB’s 2 ^nd Annual National Conversation on Black Homeownership. Speakers focused on similar themes that called out the federal government for its long-term, intentional complicity in promoting race-based public policy that works against the growth of Black homeownership. That sentiment can be summed up in remarks given by Rev. Dr. Frederick D. Haynes, III, Senior Pastor of Friendship-West Baptist Church in Dallas, TX when he said, “public policy set the stage for racial disparity.” Marc Morial, National Urban League president said that Black Americans must be just as intentional in reclaiming our “piece of the dirt” that has been denied to Black Americans since the Reconstruction era.

Other panelists, directed their remarks to millennials and GenX-er audience members and discussed the importance of understanding credit far earlier in their lives and how having good or poor credit affects their ability to purchase a home. Will Roundtree, founder of Las Vegas, NV-based WE Management said that “credit will become the new dollar.” Former NFL player Ray Crockett urged the audience to, “buy the house before the car… get your credit right…and understand what you value.” Rental Kharma spokesperson, Lynne Poole remarked that Black renters with “thin” credit profiles need to use non-traditional digital platforms like Rental Kharma that report rental payments, which are not typically counted in developing a favorable credit rating.

The full NAREB National Conversation can be viewed on: https://www.facebook.com/REALTISTNAREB/videos

MEDIA CONTACTS:

The post Historical Barriers and Structural Inequalities Still Account for Black-White Homeownership Gap appeared first on National Association of Real Estate Brokers .

U.S. Auto Insurance Industry Admits Systemic Racism

Tue, 27 Oct 2020 19:30:00 GMT

A new industry study reveals that auto insurers charge Black drivers with good records more than white drivers with bad records — among other racist practices.

”Cities and towns with majority Black residents experience among the highest quote prices compared to cities of any other racial makeup, regardless of how clean their driving record is,” the report states. “A driver with a clean record living in a majority-Black neighborhood pays almost 20 percent more for car insurance on average than a driver living in a majority-White neighborhood who has prior driving offenses.”

As the report tells it, the industry practices a form of “redlining,” the long-illegal practice in which banks used to deny or charge more for loans to homeowners in Black areas — although it doesn’t use the term: “A similar pattern holds for homeownership and credit score, with a 13-percent increase in car insurance costs for homeowners in Black neighborhoods compared renters in White ones and a 24-percent increase for car owners with excellent credit in Black neighborhoods compared to poor credit in White neighborhoods,” the report says.

The report, “Insuring the American Driver: Trends in Costs and Coverage,” from virtual insurance agent and trend-tracker Insurify, follows a number of legislative and institutional developments aimed at undoing racist insurance practices.

This month, several Democratic Congress members introduced the “Prevent Auto Insurance Discrimination Study Act .”

“We have to start to acknowledge that we’ve allowed systems in this country to decimate the earnings and lives of those least able to afford it or speak out for themselves,” said one sponsor, Rep. Bonnie Watson Coleman (D-N.J.) . “Car insurance practices are part of the problem — it’s an absolutely necessity for most American families, and many of them are being charged higher rates for unfair, undisclosed, and unproven reasons.”

In July, the National Association of Insurance Commissioners — which brings together the nation’s chief insurance regulators — announced that it was establishing a committee to address practices that promote racially discriminatory outcomes .

“The needless deaths of Ahmaud Arbery, Breonna Taylor and George Floyd have led to a movement on racial equality, that we cannot ignore,” Ray Farmer, the NAIC president, said at a special session on race and insurance in August .

Of course, civil-rights groups such as the NAACP have fought discrimination in the insurance industry — and in auto insurance in particular — for decades. Investigative reports also have exposed the auto-insurance industry’s racist practices for years. But, as Farmer’s remarks indicate, it took the political pressure of the widespread protests of this summer to goad the industry into action.

An Insurify data scientist, Kacie Saxer-Taulbee, said that companies’ business practices perpetuate racial disparities and make them worse.

“While auto-insurance providers don’t use race as a factor to set rates, other socioeconomic factors that insurers use to determine premiums, like lower credit scores and renting instead of owning a home, may differ in majority-Black and majority-White neighborhoods due to historically discriminatory practices like redlining,” she said. “These price disparities may be unintentional, but they are nonetheless structural. Insurance companies’ machine-learning algorithms … have worked to exacerbate, not democratize, racial disparities in insurance quoting.”

But the industry understands that it must address its structural racism, she noted.

“The NAIC announced that it would attempt to listen and learn more in the future, and outlined a plan to rectify the identified issues, including the regulation of big data’s influence on rates, consumer education, and increasing minority participation in the insurance industry,” Saxer-Taulbee said. “The conversation on racism in the insurance industry has been brought to the public’s attention, and insurance companies are looking to move forward in this age of corporate responsibility.

“That said,” she added, “it is still too early to know what substantive changes may result.”

Insurify’s report analyzed data from 25.5 million car-insurance premiums from all 50 states.

The post U.S. Auto Insurance Industry Admits Systemic Racism appeared first on National Association of Real Estate Brokers .

How discriminatory Real Estate practices continue to hurt black communities in the U.S

Sat, 24 Oct 2020 12:00:00 GMT

The considerable levels of segregation between white and black communities still exist in large American cities, and debate about the causes of this residential separation has been considerable.

A keen analysis of the factors that might explicate residential separation in this country—such as discrimination, urban structure, social preferences, and economic status (affordability)—reveal that a variety of factors can account for the racial segregation patterns that have ascended in the U.S. metropolis.

Of all the factors, discriminatory real-estate practices in the country are shown to be particularly injurious to the fair and affordable housing in the U.S. Historically, real-estate interests in the country have been exerted immense influence over the national housing policy—to the detriment of the black communities. The subprime mortgage crisis, along with the wider economic and housing crisis it shaped, was the zenith of the longstanding practices of predatory inclusion of black communities in the housing market.

Such unfair and vulturine housing and credit practices can be traced back to the 1960s and 70s when housing discrimination was legal. After decades of exclusion, black communities were finally promised access to the vigorous housing market with the passage of Title VIII of the 1968 Civil Rights Act, commonly known as the Fair Housing Act.

Somehow, the state acknowledged the role of housing discrimination in keeping the minority African Americans in a subordinate position by alienating black communities in white neighborhoods and avoiding investments in black communities. The starkest sign failure of the Fair Housing Act to fulfill its mandate was witnessed in the aftermath of the 2008 Financial Crisis. This crisis not only wiped out decades of hard-won economic gains by the African Americans, but it also stole their homes.

By 2010, almost 500,000 African Americans were at risk of foreclosure; four years later, in 2014, over 240,000 had already lost their homes. While several housing programs have attempted to find solutions to housing problems in black communities, their efforts have barely been fruitful.

This historical housing problem has played a fundamental role in the persistent wealth gap between white and black communities. In 2007 before the crisis, the median white family had eight times the wealth of the black family. By 2014, this statistic had risen to 11 times, and has only narrowed slightly since.

The largest part of this problem, as John Legend recently noted, in the aftermath of redlining. Redlining was a common, bigoted real-estate practice before the Fair Housing Act was enacted in 1968. This housing practice targeted black and brown homebuyers by denying credit, insurance, and other financial assistance and services in areas branded as ‘high risk.’ Financial institutions offering credit or loans to homebuyers would fence around certain areas to avoid investing in areas with majority African Americans.

Redlining practices ensured that, if you are black and you wanted to invest in property, there are areas that you wouldn’t be shown by a realtor or lender, even if you were qualified. The same applied in credit scoring and loan issuance, where a middle-class or even upper-class African American would be denied lending, while a lower-class white person would get access.

Although ‘day-light’ redlining was theoretically forbidden after passing the Fair Housing Act, its long-stranding bearings are still felt today. In fact, this prejudiced housing practice has given rise to another modern-day form of biased real-estate practice called, reverse redlining, where lenders target minority communities in non-redlining areas and offer high-interest loans and insurance.

The results of reverse redlining have created even wider economic and homeownership gaps than experienced before the enactment of the Fair Housing Act. The current 30% homeownership gap between white and black homeowners is actually larger than it was before the Fair Housing Act when housing discrimination was legal in the U.S.

In fact, it is indicated that if the back homeownership rates were the same today, as it was in the early 2000s in the U.S., black communities would have additional 770,000 homeowners . Despite some efforts to consolidate communities in the U.S., reports indicate that some federal, state and local policies continue to fortify housing discrimination in the country. Such reports indicate that various governmental institutions continue to employ exclusionary tactics that prevent African Americans and other minority groups from building wealth through affordable housing and homeownership.

Whether this is through insistent failure to enact and enforce civil rights laws or implementation of formal policy decisions, government action and inaction have undermined prosperity in communities of color. More than 50 years since passing the Fair Housing Act, black and white communities remain segregated, largely not because of personal preferences among black communities to dwell in ethnic enclaves, but rather because of decades of discriminatory housing and economic policies enacted by lawmakers on every level .

It’s time to take bold action; first, by showing care and acknowledging that unfair housing policies are not only economically detrimental to black communities, but also socially. This black-white segregation continues to perpetuate an opportunity gap. It’s time to concede that this racial segregation in housing is rooted primarily in deliberate government policies. As such, any initiative, public or private, should be welcomed as the country attempt to heal from this chronic real-estate problem.

Such bold moves are already embryonic, as showcased recently by the young, millennial couple who launched the $100M Affordable Housing Initiative in Atlanta . Amidst the current housing situation in Atlanta, which will most likely be exacerbated due to the current COVID-19 pandemic, this young couple, Majesty (33) and Elize (29) , established a remarkable, value-creating proposition in the real estate industry, not only to create a business for themselves but also provide affordable housing to the less privileged, African Americans.

This points to show that while policy makers have a massive role to play in the provision of new mortgage assistance to buy homes, especially in formerly deemed ‘redlined’ areas, the private sector has a fundamental role to play in addressing the legacy of generations of racial discrimination on housing.

CREDITS: Vanguard

The post How discriminatory Real Estate practices continue to hurt black communities in the U.S appeared first on National Association of Real Estate Brokers .

The pandemic is threatening Black homeownership gains

Fri, 23 Oct 2020 13:00:00 GMT

Black homeownership rose to a 12-year high earlier this year, reaching 47% by the second quarter, according to the U.S. Census Bureau. Still, African American families own homes at much lower rates than whites, who were at 76% in the same quarter for a difference of 29 percentage points.

The COVID-19 pandemic has the potential to wipe out gains made by Blacks, said Donnell Williams, president of the National Association of Real Estate Brokers (NAREB), which aims to promote equal housing opportunities. He noted that the people most adversely affected by the pandemic are lower income, including people of color.

“There were 40 million people unemployed (early in the pandemic) and they say that most of those folks are people that made under $40,000 a year,” Williams said. “It has the potential to be devastating to our community.”

NAREB is undertaking multiple efforts to eliminate the racial gap in housing, including educating young Black consumers on prioritizing debt through its House Then the Car initiative. The organization supports legislation such as a federal bill that would create downpayment plans similar to existing 529 college-savings plans, and it opposes the Trump administration’s rollbacks of fair-housing rules. Williams talked with Scotsman Guide about these and other issues.

Why is homeownership so important?

Homeownership is important across the board. I’m concerned about Black homeownership. Black homeownership is where we build financial stability. We have security. We create generational wealth. Every Black American needs to strive to that end.

Why is there such a large gap between Black and white homeownership rates?

We started behind the quote-unquote eight ball. First, you say you can’t own land outright. (Then the federal government) gives away land and you can’t participate. (The feds) create a government organization that says it’s for whites only. You create little cities and villages, and you’re not able to participate. We give veterans low-interest loans, 0% loans, but you’re not able to participate. This is generational now. When you talk about systemic racism and housing, this is it. We have lived it.

Black mortgage applicants are rejected 16% of the time compared to 7% for white applicants. What’s going on?

If you have two people with similar income and credit, then there’s nothing else other than color. Blacks historically have had lower credit scores because they’re asked to do more with less — the wealth gap. Everybody needs a cell phone now, right? Car insurance, cell-phone bill, these little things add up, and you’re working with less money.

What can mortgage originators do about that?

You need to hold somebody’s hand and ask, ‘Does Uncle Ray live in the basement or Aunt June live in the attic? Do they give you 600 extra bucks a month?’ Loan officers are not asking the right questions or building enough confidence with the applicant to say, ‘You can use this. You can use that.’

What else can be done to boost Black homeownership?

We found there are 1.7 million Black millennials (who qualify for homeownership but haven’t purchased). That’s a big, big number. Why aren’t they buying? We created HouseThenTheCar.com. We’re providing an online, fillable budget. Then you’ve got a housing-counseling course right there. You’ve got the downpayment-assistance mechanism. You’ve got your FICO (score) estimated to find out what your real credit score is. We need to capture the attention of the younger generation.

We have to have an African American homeownership plan, a policy through HUD sanctioned by Congress. It has been done before where programs are set up for specific groups. I already told you about the (Federal Housing Administration) government program for whites. You have the Native American homeownership plan that was passed in the late ‘80s, early ‘90s. We need our own African American homeownership program. That just the bottom line. It’s just no way around it.

CREDITS: Jim Davis / Scotsman Guide

The post The pandemic is threatening Black homeownership gains appeared first on National Association of Real Estate Brokers .

Black Oregonians Have the Lowest Rates of Homeownership

Fri, 23 Oct 2020 12:00:00 GMT

From high mortgage and loan denial rates to gentrification, a history of discriminatory practices has prevented Black Oregonians from buying a home.

The post Black Oregonians Have the Lowest Rates of Homeownership appeared first on National Association of Real Estate Brokers .

Racial disparities in homeownership rates contribute to wealth gap and impacts of COVID-19

Thu, 22 Oct 2020 12:00:00 GMT

After Congress had rejected two earlier versions of the Civil Rights Act of 1968, commonly known as the Fair Housing Act, the third version appeared to be going nowhere prior to the April 4th 1968 assassination of Martin Luther King, Jr. It was that crystalizing moment and the resulting civil unrest that spread across the country, which led to President Lyndon B. Johnson signing the Fair Housing Act into law on April 11, 1968. It was the first time that Congress declared it illegal for private individuals to discriminate on the basis of race in the sale or rental of housing.

Today, more than half a century later we continue to experience social unrest and protests centered on issues of equality, equal justice and systemic racism in the midst of a pandemic with racially disproportionate impacts.

Let’s look at the wealth gap and consider that, in 1968, a typical middle-class black household had $6,674 in wealth compared with $70,786 for the typical middle-class white household, according to data from the historical Survey of Consumer Finances that has been adjusted for inflation. In 2016, the typical middle-class black household had $13,024 in wealth versus $149,703 for the median white household, an even larger gap in percentage terms that what it was nearly 50 years ago.

Now consider this: the net worth of a homeowner is 41 times greater than that of a renter.

Why focus on housing? For starters, housing, along with food and clothing, is the most primary of our basic needs. However, housing is so much more than that. In fact, Americans’ primary residences account for about 25 percent of their overall wealth, more than any other asset. Homeownership remains a cornerstone of the American Dream, helps build strong communities and drive the U.S. economy.

If homeownership helps provide both a stable foundation and a much needed economic tailwind for so many, we should be alarmed and concerned about the racial disparities in homeownership. In fact, according to the U.S. Census Bureau survey, the African American homeownership rate at the end of the second quarter was 47%. While this number represented the highest levels since 2008, it trails the 76% homeownership rate for non-Hispanic whites by 29 percentage points. This disparity fundamentally limits the ability of African American renters to build equity and long term generational wealth. Long term systematic renting also means that each year these renters are forced to pay both higher rent, in real dollars, and to commit an ever increasing percentage of their income to housing as rent often increase faster than real wages.

Given this gap in wealth equality and homeownership percentages, it helps us understand why 41 percent of Black-owned businesses have been closed by COVID-19, compared to just 17 percent of white-owned businesses according to research at the University of California, Santa Cruz. In reality, if you need $20,000 in order to keep the doors open and you have a net worth of $150,000, much of which may be in your home, you might be able to figure out a way to make it happen. If you are a renter and have a net worth under $15,000, it is nearly impossible.

While overt racism in housing has long since been illegal, the disparities in home ownership among African Americans perpetuates long standing inequalities in all areas of society. When the homeownership rate is equal for all races we will have achieved real progress towards “fair housing”.

CREDITS: Michael Scarafile / The Post and Courier

The post Racial disparities in homeownership rates contribute to wealth gap and impacts of COVID-19 appeared first on National Association of Real Estate Brokers .

Black people in Indianapolis facing inequities with home loans according to IU study

Wed, 21 Oct 2020 14:00:00 GMT

Black residents in majority-Black areas are both the least likely to apply for a home purchase loan and the most likely to be denied when they do apply.

INDIANAPOLIS — Black people living in Indianapolis are facing inequities when trying to get home loans according to an IU study released Tuesday.

The post Black people in Indianapolis facing inequities with home loans according to IU study appeared first on National Association of Real Estate Brokers .

Donating Materials, Time and Talent to Boost Black Homeownership

Wed, 21 Oct 2020 04:06:00 GMT

Randal Wyatt was working as a student advocate for a Portland nonprofit, as well as performing as a hip-hop artist, when police killed George Floyd in Minneapolis. He’s long been outspoken on social justice issues through his work and on social media; soon he was flooded with direct messages from white people, both friends and strangers, asking how they could be better allies to Portland’s Black community.

Portland, a city with a deeply racist past , is the whitest big city in America, with a population that is roughly 77 percent white and 5.8 percent African American. Wyatt, born and raised in the Black communities of southeast and northeast Portland, felt simply that these communities needed dedicated investment. “I said it was time to put your money where your mouth is,” he recalls. “Exclusionary laws have contributed to Black and Brown communities being in the hole. We need reparations, we need to be given a piece of the pie.”

That idea grew quickly into Taking Ownership PDX , a vehicle to collect donations to invest in Portland’s Black community. Right now, it operates as a collective of contractors, realtors, neighbors and businesses that makes free repairs and upgrades to Black-owned homes. Wyatt’s goal is for the collective to become a nonprofit, and, in turn, for that nonprofit to increase the number of Black homeowners in the city.

“We have a very small Black community in Portland, and it’s a dwindling community because of displacement and gentrification,” Wyatt says. “It’s even smaller when it comes to Black homeowners and businesses. So we are trying to maintain it and help it grow.”

Wyatt’s goal was to develop a framework without red tape, to begin work as quickly as possible. He first took in donations himself, and then through a fiscal sponsor. He collected the names of residents interested in volunteering for renovation projects, as well as realtors, contractors and architects who were willing to donate their time. He approached the first homeowner, asking if they’d be interested in free home improvement, in early June. Among all the bookmaker bonuses, I like the one presented on the website mostbet-az90-giris.com because it differs from others in the simplicity of betting, even a beginner will only need a day or two, and most importantly, it is impossible to lose.

By late June, work began on the first home and Wyatt identified a second home that needed repairs. “That’s when everything started blowing up,” Wyatt says. “Word of mouth was going around, money started coming in, and I decided to quit my job.”

By August, Wyatt was focused full time on Taking Ownership PDX, with the support of a board composed of 13 people in real estate, contracting, architecture and social work.

Lauren Goché, a realtor for Portland-based Think Real Estate, joined the board and oversees fundraising. “There’s a crappy history of how real estate has had a deep hand in the economic and social divide, specifically of Black Americans, but most BIPOC,” she notes. “Realtors I know had been looking for something to put their time and money into.”

She and Wyatt set a goal to raise $100,000 in one month, a number they recently surpassed. The community contributed in various ways: small businesses, realtors and musicians have offered donation matches; an individual sold masks and donated the proceeds; a board member baked cookies and also donated proceeds. “It is such a direct, tangible thing — we are going in and fixing people’s houses,” Goché says of the momentum behind the donations. “We all feel so helpless and I feel this is something we have power over.”

For the first project, a duplex home, many repairs were in progress when Wyatt met the owner. Taking Ownership finished the repairs at no cost to the homeowner and reimbursed them for costs of prior work by providing a check for $1,252.

Wyatt chronicles home repair projects on his Instagram , with a recent project bringing over 20 volunteers to clean the property before a gut of the kitchen and bathrooms and patching the walls and ceilings. He also put out a call for material donations the family needs, including a fridge, carpet and mattresses.

While Wyatt calls on volunteers to help with house cleaning and other basic tasks, he’s using the fundraising money to hire professionals to carry out repairs. (He has a list of roughly 250 volunteers with various skill sets.) “So far we’ve hired Black-owned services to do the work,” he says. “We’ve hired a Black-owned landscaping company and Latino-owned painting company … similar to allocating money to Black-owned homes, we want to support the businesses as well.”

Taking Ownership has a list of 47 families it will assist with 13 active projects. The city of Portland reached out to refer a few families to the organization and begin discussion of expediting permitting for renovation projects. Taking Ownership is also working with the Portland Water Bureau and Energy Trust of Oregon to plug homeowners into resources to help bring their water and energy bills down.

Wyatt plans to establish Taking Ownership as a nonprofit that not only carries out repairs for Black homeowners, but offers downpayment assistance. “If we can start getting state funding, I hope to help [more] produce Black homeowners and business owners by providing down payments,” he says. Another goal is buying properties that Taking Ownership can offer as short-term housing for clients who live in unsafe conditions.

The fast growth of the collective has been “a little overwhelming,” Wyatt admits. But he and Goché both believe it’s a promising first step when it comes to acting on reparations, as opposed to just discussing it. “People are so behind this,”he says. “It’s like nothing I have ever experienced before.”

CREDITS: Emily Nonko / NextCity

The post Donating Materials, Time and Talent to Boost Black Homeownership appeared first on National Association of Real Estate Brokers .

Urban Institute’s Laurie Goodman to speak at HousingWire Annual Oct

Fri, 16 Oct 2020 00:50:00 GMT

Panel is on Increasing Homeownership in Underserved Communities

This year has been a numbers game. How low are the rates this week? How long will borrowers be in forbearance? Will the next stimulus bill be enough? The pandemic has created a long list record-breaking figures, but behind all the headlines and statistics are real people trying to keep their homes in a time of uncertainty.

That why we’ve invited Laurie Goodman, vice president at the Urban Institute , to decipher what the data means along with other experts at our HousingWire Annual event on Oct. 8. Goodman will speak on a panel with Cindy Waldron , vice president of research and analytics at Freddie Mac , and Donnell Williams, president of the National Association of Real Estate Brokers , to discuss Increasing Homeownership in Underserved Communities.

At the Urban Institute, Goodman is also the co-director of its Housing Finance Policy Center, which provides policymakers with data-driven analyses of housing finance policy issues that they can depend on for relevance, accuracy, and independence.

Goodman began her career as a senior economist at the Federal Reserve Bank of New York and spent 30 years as an analyst and research department manager on Wall Street, holding research and portfolio management positions at several Wall Street firms. From 1993 to 2008, Goodman was head of global fixed income research and manager of U.S. securitized products research at UBS and predecessor firms.

Thereafter, from 2008 to 2013, she was a senior managing director at Amherst Securities Group LP , a boutique broker-dealer specializing in securitized products, where her strategy effort became known for its analysis of housing policy issues. Goodman was inducted into the Fixed Income Analysts Hall of Fame in 2009.

Goodman serves on the board of directors of MFA Financial , Arch Capital Group Ltd., and DBRS Inc . and is an adviser to Amherst Capital Management . She has published more than 200 journal articles and has coauthored and coedited five books.

HousingWire Annual will feature other experts, including Doug Duncan , senior vice president and chief economist at Fannie Mae , Ed DeMarco, president of the Housing Policy Council , Trina Scott , chief diversity officer at Rock Ventures , Robert Dietz, chief economist at the National Association of Home Builders and many more.

We’re focusing this virtual event on The Great Acceleration — the disruption speeding through the business landscape, upending traditional strategies and agendas for those in housing. We’ve got sessions on the future of regulation, business strategy during times of social upheaval, green housing, capital market appetite by channel and much more.

HW+ members can attend for free by registering he r e . Not an HW+ member yet? You can sign up for free attendance plus get the amazing premium content we publish digitally and in the print magazine. Regular registration can be accessed here .

CREDITS: Alex Roha / HousingWire

The post Urban Institute’s Laurie Goodman to speak at HousingWire Annual Oct appeared first on National Association of Real Estate Brokers .

New federal legislation aims to help buyers save for down payments

Tue, 01 Sep 2020 21:47:00 GMT

Similar to a 529 Plan, the American Dream Down Payment Act would help homebuyers save 20% for a down payment in a state-managed savings account

clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.inman.com/2020/08/14/bidding-wars-get-brutal-as-buyers-chase-dwindling-supply/” target=”_blank” rel=”noopener noreferrer”>Just ahead of what some real estate experts are predicting will be a robust fall homebuying season, Senators Cory Gardner (R-CO) and Doug Jones (D-AL) are aiming to help aspiring homeowners overcome the financial barrier of saving for a down payment with the American Dream Down Payment Act of 2020.

“A down payment on a home can be a significant barrier to becoming a homeowner,” Gardner said in statement. “Inspired by the popular 529 education savings accounts, this bipartisan bill will make it easier for people to save for a down payment, which will aid both our unique housing challenges in Colorado and our economic recovery from the COVID-19 pandemic.”

Proposed earlier this month, the ADDPA would allow states to establish and manage down payment savings accounts for homebuyers. Homebuyers can save up to 20 percent of today’s median housing cost or $102,080 — an amount that would rise with inflation. Family and friends can contribute to the account, which can be used for a down payment or other related housing costs without penalty.

The Securities and Exchange Commission would set standards for the investments of eligible accounts and allowable fees, the senators explained.

Although homebuyers can offer as low as 3.5 percent down with FHA loans, the coronavirus and the ensuing clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.inman.com/2020/04/13/jpmorgan-chase-tightens-mortgage-lending-standards-amid-uncertainty/” target=”_blank” rel=”noopener noreferrer”>unemployment crisis has pushed lenders to raise minimum credit scores, require greater down payments, and evidence of a six-month savings reserve — a hard task for most Americans.

The National Association of Realtors, The Colorado Association of Realtors, the National Association of Real Estate Brokers and the CBC Mortgage Agency showed support for the plan, saying it could make homeownership more accessible for lower-income and minority buyers.

“The ability to accumulate tax-free savings funds breaks down/eliminates one of the most prominent barriers to achieving homeownership, the down payment,” NAREB National President Donnell Williams said in a joint statement with CAR CEO Tyrone Adams. “This Act serves as a tangible springboard to increase Black homeownership and real wealth-building prospects which the National Association of Real Estate Brokers includes in the meaning of its time-honored slogan, Democracy in Housing.”

“The resiliency of our residential real estate market has been one of the few bright spots of America’s economy during this pandemic, but numerous would-be homebuyers are finding it difficult or impossible to save the money needed for a down payment on a home,” NAR President Vince Malta added in a separate statement. “Modeled on the very popular 529 education savings account concept, the American Dream Down Payment Act would allow savings for the down payment of a principal residence to grow tax-free, offering a responsible and commonsense approach to the multi-faceted problem of housing affordability in America.”

The ADDPA comes on the heels of Rep. Sean Mahoney’s (NY-18) clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.inman.com/2020/07/22/ny-congressman-announces-first-time-buyer-coronavirus-relief-plan/” target=”_blank” rel=”noopener noreferrer”>First Time Homebuyer Pandemic Savings Act, which allows first-time buyers to use funds from their retirement accounts “under the umbrella of coronavirus-related distributions” for a down payment. Withdrawals under $25,000 will be tax-exempt and penalty-free.

The FTHPS Act builds on current CARES Act provisions for new and repeat homebuyers that allow them to withdraw up to $100,000 of their 401(k) balance penalty-free until the end of 2020.

Although both Acts have garnered robust support within the industry, financial experts say both pieces of legislation have their risks, including encouraging buyers to sacrifice retirement or other long-term savings.

“Most Americans are undersaved for emergencies and retirement, and further, the idea of owning a home often leads would-be home buyers into financial tunnel vision — focusing all efforts and resources on acquiring the home and seeing it as the end-all, be-all of financial and emotional utopia,” clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.bankrate.com/mortgages/down-payment-accounts-could-get-tax-advantage/” target=”_blank” rel=”noopener noreferrer”>Bankrate Chief Financial Analyst Greg McBride said. “The unintended consequence is that this prompts even diligent savers to cut back or halt saving for retirement or emergencies in order to accumulate a down payment on a tax-advantaged basis.”

Both Acts are still in the introduction stage and will be passed to respective committees for further action.

CREDITS: https://bestpricepharmacyfinder.com/ – Best price ed drugs. Discutez de votre état de santé avec votre pharmacien pour vous assurer que vous pouvez utiliser ce remède. Plus vous fournirez de détails, plus votre médecin sera en mesure de vous aider. clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.inman.com/author/marian-mcpherson/” target=”_blank” rel=”noopener noreferrer”>Marian McPherson / clubdigitalmedia Cependant, seul votre pharmacien peut décider si le médicament est bon pour vous. Ainsi, si vous souhaitez vous épanouir, vous devez identifier votre objectif principal à l’avance. Se sentir mieux prend du temps, mais vous pouvez y arriver en faisant=”https://www.inman.com/2020/08/27/new-federal-legislation-aims-to-help-buyers-save-for-down-payments/” target=”_blank” rel=”noopener noreferrer”>INMAN

The post New federal legislation aims to help buyers save for down payments appeared first on National Association of Real Estate Brokers .

Bridging the Divide: Persistent poverty puts home ownership out of reach for many Memphians

Wed, 26 Aug 2020 14:55:00 GMT

MEMPHIS, Tenn. — It’s said that homeownership is a sign of wealth, but what do you do when that wealth is denied to certain people?

Studies show nationally, homeownership among African-Americans is a lot lower than White Americans. Experts say the same goes for the city of Memphis.

The question is why, and whether anything can be done to close the gap.

According to a 2018 Urban Institute study , about 73% of White residents in Memphis were homeowners, while only 42% of Black residents owned their homes.

Real estate broker Latasha Conway with Divine Destiny Realty says the main reason for the gap is a lack of education.

“A lot of people feel that, if I can pay rent, then I can buy a house,” she said, “but they don’t understand that there is a formula that is being used.”

That formula is the debt-to-income ratio.

Conway said most of her clients are minorities who have a large amount of debt, which isn’t too appealing when looking for a loan.

“That’s a way for them to say, ‘We’re not going to lend to you because we don’t feel like you’re financially stable.’”

A 2019 report by the National Association of Real Estate Brokers shows overall denial rates for home purchase loans for black applicants were double that for white applicants.

Conway said she tries to encourage clients to be mindful of their credit, but she says it’s difficult when in the city of Memphis, poverty has a stronghold on the Black and Hispanic communities.

“They can’t focus on I’m getting ready to buy a house because they have to focus on, ‘How am I going to pay the rent next month. How am I going to feed my children.’”

Elena Delavega, associate professor of social work at the University of Memphis, said people make the decisions they have to make based on the income they have, but nobody ever chooses to be poor.

From 2005 to 2018 poverty rates in Memphis were significantly higher among minorities than non-Hispanic Whites according to a University of Memphis study .

Conway said this directly contributes to the gap in home ownership, especially when she says there are investors who are buying affordable housing and renting the properties at much higher profits.

“The investors are coming in and they’re fixing them up and doing a great job, but the value is skyrocketing,” she said.

Professionals say the lack of affordable housing leads to more demand, in a city where the median income is around $30,000 among blacks and $60,000 among whites.

“I have a customer the other day who bought a $150,000 house. She didn’t get it because an investor put up $150,000 cash. So, how does my buyer compete with these investors?” said Nedra Redditt, president of the Memphis Women’s Council of the National Association of Real Estate Brokers.

She said the organization’s goal is to educate underserved communities on home buying practices and the subtle forms of discrimination.

Redditt said she’s unsure if the housing gap will ever be closed since reports show the gap between black and white homeownership today is larger than what it was in 1968 when the Fair Housing Act was enacted.

However, she says all hope is not completely lost.

“All we can do is what we’re doing, which is keep educating, which is motivating, which is holding our customers by the hand,” Redditt said.

Strides are being taken on a federal level to make home buying a reality for all. A senate bill called the American Dream Down Payment Act of 2020 has been introduced.

If put into law, people could open a savings account at the state level with the goal of saving for a down payment for a home.

CREDITS: Quametra Wilborn / WREG Memphis

The post Bridging the Divide: Persistent poverty puts home ownership out of reach for many Memphians appeared first on National Association of Real Estate Brokers .

Who Owns a Home in America, in 12 Charts

Tue, 18 Aug 2020 20:47:00 GMT

Many homeownership trends have remained largely the same since 1960—with a few noteworthy shifts.

The post Who Owns a Home in America, in 12 Charts appeared first on National Association of Real Estate Brokers .

Senate bill seeks to remove major barrier to black homeownership

Thu, 06 Aug 2020 02:32:00 GMT

National Association of Real Estate Brokers (NAREB) applauds introduction of American Dream Down Payment Act intended to break financial constraints thwarting the growth of Black homeownership.

Washington, DC – August 5, 2020 –The U.S. Senate accepted the bipartisan introduction by Senators Sherrod Brown (D) of Ohio, Doug Jones (D) of Alabama, and Cory Gardner (R) of Colorado of the American Dream Down Payment Act of 2020 (S-4414) . According to the Urban Institute the major barrier preventing Black Americans from purchasing their first home is the inability to save sufficient funds for a down payment. If the bill is enacted into law, the measure allows the creation of savings accounts at the state level similar to the 529 college savings plan, but with the goal of saving for the down payment to purchase a home. Contributions of up to $12,000 per year could be put into these qualified accounts and the savings could grow tax-free as long the funds are used for a down payment.

“Senate Bill S-4414, introduced on Tuesday, August 4, 2020, now known as the American Dream Down Payment Act of 2020 serves as a beacon of hope to vastly increase the opportunity for Black Americans to purchase a first-time home and begin a wealth building journey. Homeownership continues to be the best avenue to build legacy wealth and to begin closing the wide wealth gap between Black Americans and non-Hispanic White Americans,” said Donnell Williams, president of the National Association of Real Estate Brokers, the country’s oldest, professional, minority real estate trade group.

The current homeownership rate for Black Americans stands at 47% compared to the 76% homeownership rate of non-Hispanic whites. “That nearly 30% span represents an economic chasm that NAREB is determined to close. Passage of the American Dream Down Payment Act will serve as a long-awaited lifeline, especially for young Black Americans and their parents who want to help their children get a head start on building financial security,” Williams added.

NAREB has long envisioned such a savings plan and recommended that such a legislative action was critical to increasing the Black homeownership rate. The congressional ask was embedded in NAREB’s 2018 State of Housing in Black America report as one of the solutions to increase Black wealth through homeownership.

And most recently, the savings plan was included in President Williams’ testimony before the House Financial Services Committee and at NAREB’s Spring Policy Conference. “NAREB’s vigilance is paying off. The economic health of Black Americans strengthens the entire national economy and that of the states where Black Americans reside. We are gratified that Senators Brown, Jones, and Gardner understand the significance and importance of expanding opportunity for Black Americans to achieve the American Dream of homeownership,” Williams stated.

The bill is supported by: Asian American Association of America (AREAA); FHLBank of San Francisco; Mainstreet Alliance; National Association of Affordable Housing Lenders (NAAHL); National Association of Realtors (NAR); National Association of Real Estate Brokers (NAREB); National Business League; National Community Reinvestment Coalition (NCRC); National Fair Housing Alliance (NFHA), and National Housing Conference (NHC).

For more information visit: www.nareb.com

DOWNLOAD PRESS RELEASE

# # # # #

Media Contacts:

The post Senate bill seeks to remove major barrier to black homeownership appeared first on National Association of Real Estate Brokers .

Low mortgage rates help home buyers as prices rise — if they can qualify

Tue, 04 Aug 2020 15:58:00 GMT

The post Low mortgage rates help home buyers as prices rise — if they can qualify appeared first on National Association of Real Estate Brokers .

Where a Little Mortgage Goes a Long Way

Tue, 04 Aug 2020 03:53:00 GMT

Affordable homes can be hard to buy because lenders don’t make much money on small loans. But programs to encourage homeownership can help buyers build wealth.

The post Where a Little Mortgage Goes a Long Way appeared first on National Association of Real Estate Brokers .

National association of real estate brokers strongly opposes HUD revocation of 2015 fair housing rule

Tue, 04 Aug 2020 01:57:00 GMT

New HUD rule eliminates federal oversight of local and state fair housing policies paving the way for the re-emergence of discriminatory housing practices

Washington, DC – August 3, 2020 – The recent revocation of the Affirmatively Furthering Fair Housing Rule (AFFH) by the U.S. Department of Housing and Urban Development (HUD) represents the sanctioned return of segregated housing according to the National Association of Real Estate Brokers (NAREB), the country’s oldest minority real estate trade association.

NAREB president, Donnell Williams stated that, “HUD’s action sets fair housing policy back more than 50 years and stands to undo decades of progress to achieve Democracy in Housing.” In 2015, the Obama Administration issued the AFFH rule requiring HUD grant recipients, (states and localities) to examine fair housing policies on the basis of race. The rule further required that the states and localities address any measurable bias. The intent of the AFFH rule was to take a proactive role in enforcing fair housing policy under the Fair Housing Act of 1968.

The new rule entitled, “Preserving Community and Neighborhood Choice,” allows states and localities to have final say whether their policies are “furthering fair housing.” and will have very little guidance, or even incentive to ensure that fair housing policies are indeed protecting the rights and interests of Black and other Americans who have been, or may be discriminated against in the future.

“The new replacement rule represents yet another setback In the struggle to close the racial wealth gap and thwart the growth of Black homeownership,” Williams stated. For decades, local governments had racial covenants that prevented Black Americans from buying properties in certain neighborhoods. These racially discriminatory efforts were augmented by redlining of Black neighborhoods by various federal agencies and lenders.

“In spite of these obvious attempts to roll back the clock, NAREB will continue to serve as the champions of the communities we serve as well as the conscience of the real estate and mortgage lending industries,” Williams added.

For more information, visit www.nareb.com

DOWNLOAD PRESS RELEASE

# # # # #

Media Contacts:

The post National association of real estate brokers strongly opposes HUD revocation of 2015 fair housing rule appeared first on National Association of Real Estate Brokers .

Statement by President Donnell Williams on Continued Increase of Black Homeownership Rate

Tue, 28 Jul 2020 19:13:00 GMT

Washington, DC – July 28, 2020 – The National Association of Real Estate Brokers (NAREB) enthusiastically welcomes the continued upward trend of the Black homeownership rate as issued by the U.S. Census Bureau in its 2 ^nd quarter 2020 report. The 47% rate represents the fourth consecutive quarter, one year in totality, of increases in Black homeownership. While there may cause for celebration, we are mindful that the current Black homeownership rate has not reached this number since 1 ^st quarter of 2000 when reported by the U.S. Census Bureau at 47.4% and reached an all-time high of 49.7% in 2 ^nd quarter 2004.

This current upward trend indicates to NAREB that concerted efforts to address and remove systemic barriers to Black homeownership, intentional and targeted programmatic initiatives, along with focused promotion of the wealth building benefits of homeownership appear to be shifting the tide. I assure Black American prospective homebuyers that NAREB will continue to aggressively pursue our advocacy efforts nationally and be available to assist Black Americans considering homeownership.

We are painfully aware, however, of the disparate health and financial effects that the COVID-19 pandemic has inflicted on Black Americans and other vulnerable populations. Life, as we all knew it, is difficult to navigate now, and into the foreseeable future. At the same time, the dreams, and the plans for homeownership among Black Americans appear not to be squelched. NAREB Realtists and our real estate affiliates, using every possible safety precaution, stand unified as guardians of our communities, ready to provide the guidance and accurate information to Black Americans working to achieve their dream of homeownership and a pathway to boost economic futures.

Download Press Release

# # # # #

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Media Contact:

The post Statement by President Donnell Williams on Continued Increase of Black Homeownership Rate appeared first on National Association of Real Estate Brokers .

African Americans got left out of the urban economic boom

Mon, 20 Jul 2020 17:51:00 GMT

Over the past couple of decades, American cities replaced their abandoned downtowns with gleaming new residential developments, fancy restaurants, and office buildings with high-paying jobs.

On average, the economies of the biggest metro areas in the US doubled in size between 2001 and 2018, according to data from the Bureau of Economic Analysis.

But Black Americans were largely left out of the urban economic boom. From home ownership to income, they have consistently lagged behind their white counterparts. These disparities are adding fuel to the protests sparked by the death of George Floyd and other cases of police brutality.

“The dry tinder was racial and social inequality,” said Myron Orfield, director of the Institute on Metropolitan Opportunity, which focuses on race and poverty in metropolitan areas.

Neighborhood segregation

Not all neighborhoods benefited from the urban economic boom—and those that didn’t were more likely to have more Black residents, according to an analysis by Orfield’s group, which is part of the University of Minnesota Law School. It looked at residents’ income in the 50 most populous metro areas in the US to track how neighborhood fortunes changed between 2000 and 2016. It found that areas that underwent a strong economic expansion during that period also saw a surge in white residents. The number of Black residents in those areas, meanwhile, shrunk.

The opposite happened in neighborhoods that were in decline: The number of Black people living in them grew slightly, while the number of white residents dropped. Overall, Black people were much more likely to live in those areas than other groups.

Separate education

Black Americans have also been disproportionally hurt by school segregation. In 2016, a typical white student attended schools in which nearly 70% of classmates were also white, according to a report published by the Civil Rights Project at the University of California, Los Angeles. The typical Black student, meanwhile, went to schools in which people of color made up 70% of the student body.

Schools with a high proportion of Black or Latino students also tend to have a high proportion of low-income students, research from Civil Rights Project shows. Since schools are heavily funded by local taxes, students living in poor neighborhoods receive less funding than those in better-off areas. The gap between white and non-white students was estimated to be $23 billion in 2019 by the education non-profit Edbuild.

In most US cities, students of color are much more likely to attend high-poverty schools than their white counterparts.

Gaps in homeownership

Despite the urban boom, Black homeownership over the past couple of decades didn’t improve much in most cities, and fell in others.

While the financial crisis wiped out gains in homeownership across the country, it’s been harder for Black homeowners to recover. This has made the gap between whites and Black Americans even wider in some metro areas. In St. Louis, for example, the black homeownership rate in 2000 was 48.5%, compared to 77% among whites. By 2017, Black homeownership had dropped to 38.6%. By comparison, white ownership in the city of more than 2.7 million people went up slightly, to 77.4%.

Unequal pay

Individual incomes in more than 380 metro areas across the US grew an average of 15% between 2008 and 2018, according to analysis of data from the US Bureau of Economic Analysis. But in many cities, the median income of white residents grew significantly more than that of Black residents. For example, in the Dallas metro area, the median income for white residents grew by $18,480 between 2000 and 2018. By comparison, Black residents’ median income grew by $11,268.

In the top 50 most populous metro areas, Black residents continued to earn significantly less than white residents. In some cities, like Milwaukee, white residents earned more than double than their black counterparts in 2018.

Solutions for the future

These data points aren’t just isolated indicators of racial inequality, but part of a much larger problem. “It literally shows up in everything that we could look at,” says Valerie Wilson, an economist at the Economic Policy Institute who recently co-published a report with Elise Gould on how the Covid-19 pandemic disproportionately affected Black workers in the US due to racism.

Despite policies like financial assistance and lending support for small businesses, Gould and Wilson’s data analysis showed that racial discrimination, exclusion, and exploitation continue to be pervasive. Anti-discrimination laws haven’t worked very well either, because of lackluster enforcement, she adds.

Wilson says more transparency on pay and hiring decisions, clear pay scales, and pay ladders could help. She would also like to see more union organization. Whatever the policies are, they have to target the structural racism that is at the root of economic inequality, she said.

“It really does need to be informed by an acknowledgement of the underlying racial stratification and racial hierarchy in this country,” she added.

CREDITS: Karen Ho / QUARTZ

The post African Americans got left out of the urban economic boom appeared first on National Association of Real Estate Brokers .

Congressional hearing: Servicers dropped the ball on forbearance clarity

Fri, 17 Jul 2020 21:00:00 GMT

Also discussed racial disparity in forbearance offerings.

The House Financial Services Subcommittee on oversight and investigations held a hearing on Thursday examining how servicers provided clarity and information on the CARES Act and forbearance options for borrowers.

The discussion, titled “Protecting Homeowners During the Pandemic: Oversight of Mortgage Servicers Implementation of the CARES Act” also investigated disproportionately affected lower income households and communities of color.

Witnesses Alys Cohen, staff attorney for the National Consumer Law Center , Marcia Griffin, founder and president of HomeFree-USA and Donnell Williams, president of the National Association of Real Estate Brokers , were in agreement that a gap consisting of “incomplete and inconsistent” information regarding forbearance was occurring between servicers and American borrowers.

“Federal regulators must increase oversight and ensure mortgage assistance meets the needs of diverse communities of homeowners, improve regulations, including recent CFPB rules that leave homeowners at risk, and consider future reforms in the mortgage servicing industry,” said Cohen.

Several witnesses and representatives such as Rashida Tlaib of Michigan and Nydia Velaquez of New York said it was the responsibility of the servicer and the government to provide proper information and assistance – saying many borrowers in forbearance within their districts weren’t aware of the 180-day initial forbearance period or the up to one-year extension.

Andy Barr, ranking member for the subcommittee, and witness Ed DeMarco , president of the Housing Policy Council, were in agreement that servicers pivoted in a timely manner and were “better prepared and more nimble today than they were in past crises.” They supported the idea that it was more the responsibility of the borrower to maintain communication with servicers during periods of possible forbearance.

DeMarco said HPC members and other mortgage servicers extended forbearance to homeowners who do not have federally backed loans and began offering forbearance options before the passage of the CARES Act.

“From the outset of this emergency, HPC members have been committed to keeping individual borrowers and families in their homes,” said DeMarco. “We have been doing this in partnership with many others, including government agencies and federal regulators, Congress, nonprofit and community organizations, as well as other stakeholders, including those testifying with me today.”

All witnesses were in agreement that a history of systemic discrimination is being maintained in the housing industry. Williams said there is a 13% gap between Black homeowners and white homeowners receiving forbearance and urged Congress to allocate specific funds targeted to the preservation of Black homeownership.

“It is well documented the COVID-19 pandemic has had a crushing and devastating effect on Black homeowners, putting a deep economic strain on many Black borrowers who have worked hard to achieve the ‘American Dream’ of homeownership,” Williams said. “As of mid-June 2020, roughly 24% of Black homeowners reported some difficulty making their mortgage payments compared to white homeowners.”

Al Green, chairman of the subcommittee, proposed a department of reconciliation with the responsibility of dealing with racism in not only the industry but within the country that would report to the president and maintain a secretary of reconciliation. All members in attendance, except DeMarco, agreed the position should exist.

CREDITS: Alex Roha / HousingWire

The post Congressional hearing: Servicers dropped the ball on forbearance clarity appeared first on National Association of Real Estate Brokers .

Who Were the Buffalo Soldiers?

Fri, 19 Jun 2020 22:00:00 GMT

Following the U.S. Civil War , regiments of African American men known as buffalo soldiers served on the western frontier, battling Indians and protecting settlers. The buffalo soldiers included two regiments of all-black cavalry, the 9th and 10th cavalries, formed after Congress passed legislation in 1866 that allowed African Americans to enlist in the country’s regular peacetime military.

The legislation also brought about the creation of four black infantry regiments, eventually consolidated into the 24th and 25th infantries, which often fought alongside the 9th and 10th cavalries. Many of the men in these regiments, commanded primarily by white officers, were among the approximately 180,000 African Americans who served in the Union Army during the Civil War.

For more than two decades in the late 19th century, the 9th and 10th cavalries engaged in military campaigns against hostile Native Americans on the Plains and across the Southwest. These buffalo soldiers also captured horse and cattle thieves, built roads and protected the U.S. mail, stagecoaches and wagon trains, all while contending with challenging terrain, inadequate supplies and discrimination.

It’s unclear exactly how the buffalo soldiers got their nickname. Archivist Walter Hill of the National Archives has reported that, according to a member of the 10th Cavalry, in 1871 the Comanche bestowed the name of an animal they revered, the buffalo, on the men of the 10th Cavalry because they were impressed with their toughness in battle. (The moniker later came to be used for the 9th Cavalry as well.)

Other sources theorize the name originated with the belief of some Native Americans that the soldiers’ dark, curly, black hair resembled that of a buffalo. Whatever the case, the soldiers viewed the nickname as one of respect, and the 10th Cavalry even used a figure of a buffalo in its coat of arms.

When the American-Indian Wars ended in the 1890s, the buffalo soldiers went on to fight in Cuba in the 1898 Spanish-American War ; participate in General John J. Pershing ’s 1916-1917 hunt for Mexican revolutionary Pancho Villa; and even act as rangers in Yosemite and Sequoia national parks .

In 1948, President Harry Truman issued an executive order eliminating racial segregation and discrimination in America’s armed forces; the last all-black units were disbanded during the first half of the 1950s. The nation’s oldest living buffalo soldier, Mark Matthews, died at age 111 in Washington, D.C., in 2005.

CREDITS: Elizabeth Nix / History Channel

The post Who Were the Buffalo Soldiers? appeared first on National Association of Real Estate Brokers .

The Thorny History of Reparations in the United States

Fri, 19 Jun 2020 20:00:00 GMT

In the 20th century, the country issued reparations for Japanese American internment, Native land seizures, massacres and police brutality. Will slavery be next?

The papers were handed out one by one to the elderly recipients—most frail, some in wheelchairs. To some, it may have looked like a run-of-the-mill governmental ceremony with the usual federal fanfare. But to Norman Mineta, a California congressman and future Secretary of Transportation, the 1990 event was deeply symbolic.

The papers were checks for $20,000, accompanied by a letter of apology for the internment of over 120,000 Japanese Americans during World War II. They were the first issued under the Civil Liberties Act of 1988, a historic law that offered monetary redress to over 80,000 people.

Mineta had spearheaded the law, fighting for a government apology and financial redress for nearly a decade. As he watched, he flashed back to his own internment during the war, first at a racetrack, then at Heart Mountain War Relocation Center in Wyoming. His family had been forced to leave their home and business behind.

Now, Mineta felt, the government had finally begun the process of reconciliation. “The country made a mistake, and admitted it was wrong,” he says. “It offered an apology and a redress payment. To me, the beauty and strength of this country is that it is able to admit wrong and issue redress.”

Today, the law is remembered as the most successful push for reparations for a historic wrong in U.S. history. But the United States’ track record of reparations and official apologies is scattershot—and it has yet to tackle one of its most glaring injustices—the enslavement of African Americans. Many argue that slavery in America has legacies that continue to shape society today.

Though demands for apologies and financial restitution are not new, reparations for a state’s behavior toward its citizens are relatively modern. The idea of a state apologizing for, much less paying for, its actions toward its own citizens was almost unthinkable until Nazi Germany orchestrated a large-scale genocide. About 6 million Jews were murdered during the Holocaust, and for the first time the world grappled with how to make a nation pay money to atone for a historical injustice.

“There was the sense that Germans had done something very bad and needed to make amends,” says historian John Torpey , a professor at The Graduate Center of the City University of New York, and the author of Making Whole What Has Been Smashed: On Reparations Politics . “That was the price of admission for a return to the community of civilized nations.” Germany has since paid hundreds of millions of dollars to Israel, individual Holocaust survivors, and others.

Since then, the United States has followed suit. But though it has paid reparations to some groups it wronged through unjust treaties, coups and brutal experiments, others who still contend with the ramifications of historic injustices continue to wait for compensation.

Native American Reparations: Belated Payment for Unjustly Seized Land

World War II sparked a movement to address one of the United States’ historic wrongs: its treatment of Native Americans over centuries of conquest and colonization. Native Americans enlisted in World War II in disproportionately high numbers: 44,000, or nearly 13 percent of the entire population of Native Americans at the time, served as code talkers who stumped the enemy with their tribal languages and brave service members who fought in the European and Pacific theaters of war. After World War II, momentum to compensate tribes for the unjust seizure of their lands grew.

In 1946, Congress created the Indian Claims Commission, a body designed to hear historic grievances and compensate tribes for lost territories. It commissioned extensive historical research and ended up awarding about $1.3 billion to 176 tribes and bands . The money was largely given to groups, which then distributed the money among their members. For some tribes whose members didn’t live on a reservation, note historians Michael Lieder and Jake Page, the money was distributed per capita. For those who did live on reservations, the money was often earmarked for tribal projects.

However, the actual funds only averaged out to about $1,000 per person of Native American ancestry, and most of the money was put in trust accounts held by the United States government, which has been accused of mismanagement over the years. “Gambling has had a more positive impact on the quality of life on reservations than did the Indian Claims Commission Act,” Lieder and Page write.

And it took decades for a formal apology. Tucked inside a defense spending bill, the United States apologized for what it characterized as the “many instances of violence, maltreatment, and neglect inflicted on Native Peoples by citizens of the United States” in 2009.

Native Hawaiian Reparations: Land Leases for the Overthrow of a Kingdom

Beginning in 1893, Native Hawaiians’ extensive land holdings were taken by the federal government in the wake of its overthrow of the Kingdom of Hawai’i. The loss of lands had actually begun earlier: As white businesses flocked to Hawaii in the late 19th century, they bought up huge swaths of land and established plantations. As low-paid workers flocked to the island, Native Hawaiians began living in crowded cities and dying of diseases for which they had no immunities.

As a result, Native Hawaiians nearly died out. In 1920, there were an estimated 22,600 Native Hawaiians left, compared to nearly 690,000 in 1778, when Europeans first made contact with the islands.

In 1917, lands leased from Native Hawaiians by large sugar and ranching companies began to come up for renewal. John Wise, a Native Hawaiian who was the territory’s Senator, joined with Jonah Kūhiō Kalanianaʻole, a prince before the United States seized Hawaii, to argue that those lands should be set aside for Native Hawaiians.

The Hawaiian Homes Commission Act of 1920 established a land trust for Native Hawaiians and allowed people of one half Hawaiian ancestry by blood to lease homesteads from the federal government for 99 years at a time for a total of $1.

“Although the act was seen as helping a declining race,” writes historian J. Kehaulani Kauanui, “it was sharply limited in its potential for rehabilitating Hawaiians.”

Much of the land was remote and unfit for development, and it put people who married non-Native Hawaiians at risk of losing their land. Today, those problems persist. Though the Native Hawaiian population has surged, there remains a long waiting list for homestead lands, and families that inherit homesteads must prove their 50 percent Hawaiian descent to keep them. The United States only apologized for its treatment of Native Hawaiians in 1993, a century after the overthrow.

Tuskegee Experiment Reparations: Compensation for Medical Brutality

In some cases, federal and state governments have made payments to people harmed by brutality. In 1973, for example, the U.S. began an attempt at reconciliation for the Tuskegee Experiments , in which 600 black men were unknowingly left untreated for syphilis after being misled by officials who involuntarily enrolled them in a “treatment program.”

The existence of the experiment, and its horrifying extent, only became clear after Jean Heller, an investigative reporter for the Associated Press, wrote a story on the study and its effects. After a class-action lawsuit, the men were awarded $10 million and the United States promised to provide healthcare and burial services for the men. Eventually, the state ended up awarding healthcare and other services to the men’s spouses and descendants, too.

It took decades, though, for a presidential apology for the Tuskegee Experiment. In 1997, President Clinton called its victims “hundreds of men betrayed” and apologized on behalf of the United States. But financial compensation was cold comfort to more than the study’s victims. Decades later, the experiment is correlated with increases in mistrust of the medical establishment, overall mortality and reluctance to see medical providers among black men, who face significant health disparities compared to their white counterparts in the United States. “No scientific experiment inflicted more damage on the collective psyche of black Americans than the Tuskegee Study,” writes historian James H. Jones.

Cities and states, rather than the federal government, have led the way in financial compensation for most other cases of brutality. Take Florida, where lawmakers passed a bill that paid $2.1 million in reparations to survivors of the Rosewood Massacre , a 1923 incident in which a majority-black Florida town was destroyed by racist mobs. Or Chicago, which created a $5.5 million reparations fund for survivors of police brutality aimed at black men during the 1970s and 1980s.

People of Japanese Descent: Reparations for Internment During World War II

The Civil Liberties Act of 1988 Congressman Mineta spearheaded was a watershed moment for survivors of historical injustices. Though the United States did allow internees to file claims for damages or property loss after World War II, it had never paid reparations. That changed after the bill, which apologized for Japanese American internment and granted $20,000 to every survivor.

But despite strong grassroots support at the outset for the bill, notes Mineta, officials were wary of paying survivors. They opposed the bill despite the recommendations of a government-appointed commission that considered testimony from over 750 witnesses and concluded that internment was the result of “race prejudice, war hysteria, and a failure of political leadership,” not military necessity.

“So very few people even knew about the evacuation and internment,” says Mineta. When he appealed for action, his fellow lawmakers would ask “This happened over 40 years ago. Why should we keep talking about it?”

In response, Mineta asked if they would willingly confine themselves behind bars for the duration of World War II for any amount of money. “Most people would say absolutely not,” he recalls.

After nearly a decade of Congressional roadblocks, the bill finally passed. Ronald Reagan agreed to sign the law after being reminded of a wartime speech he had given in recognition of Kazuo Masuda , a Japanese American war hero.

Will The U.S. Ever Pay Reparations for Slavery?

Despite the success of the Civil Liberties Act of 1988, however, the United States has yet to tackle reparations for another glaring injustice: the enslavement of Africans from the earliest days of colonization to the passage of the 13th Amendment in 1865, and the long period of economic inequality and civil rights violations that followed. Though the U.S. apologized for slavery and segregation in 2009, it has never issued redress to the descendants of enslaved people.

When it comes to slavery the United States has proven unwilling to grapple with the enormity of its injustice, and of those that followed during Jim Crow segregation and the financial and social inequality faced by black Americans. In a recent Pew Research Center survey, most Americans said that slavery’s legacy still affects black Americans to this day. But that understanding has not yet fueled an overwhelming public demand for reparations.

“The politics of it are incredibly difficult,” says Torpey. He predicts calls for reparations for slavery will only gain footing in the wake of a commission similar to the one that helped get the Civil Liberties Act of 1988 off the ground. In June 2019, the House Judiciary Committee heard testimony on H.R. 40 , a bill that would do just that. During the hearing, author Ta-Nehisi Coates pointed to the nation’s unjust past—and reparations as a way forward.

“It is impossible to imagine America without the inheritance of slavery,” he told lawmakers. “The matter of reparations is one of making amends and direct redress, but it is also a question of citizenship. In H.R. 40, this body has a chance to both make good on its 2009 apology for enslavement, and reject fair-weather patriotism, to say that this nation is both its credits and debits. That if Thomas Jefferson matters, so does Sally Hemings. That if D-Day matters, so does Black Wall Street. That if Valley Forge matters, so does Fort Pillow . Because the question really is not whether we’ll be tied to the somethings of our past, but whether we are courageous enough to be tied to the whole of them.”

CREDITS: Erin Blakemore / HISTORY CHANNEL

The post The Thorny History of Reparations in the United States appeared first on National Association of Real Estate Brokers .

America’s History of Slavery Began Long Before Jamestown

Fri, 19 Jun 2020 16:01:00 GMT

The arrival of the first captives to the Jamestown Colony, in 1619, is often seen as the beginning of slavery in America—but enslaved Africans arrived in North America as early as the 1500s.

In late August 1619, the White Lion , an English privateer commanded by John Jope, sailed into Point Comfort and dropped anchor in the James River. Virginia colonist John Rolfe documented the arrival of the ship and “20 and odd” Africans on board. His journal entry is immortalized in textbooks, with 1619 often used as a reference point for teaching the origins of slavery in America . But the history, it seems, is far more complicated than a single date.

It is believed the first Africans brought to the colony of Virginia , 400 years ago this month, were Kimbundu-speaking peoples from the kingdom of Ndongo, located in part of present-day Angola. Slave traders forced the captives to march several hundred miles to the coast to board the San Juan Bautista, one of at least 36 transatlantic Portuguese and Spanish slave ships.

The ship embarked with about 350 Africans on board, but hunger and disease took a swift toll. En route, about 150 captives died. Then, when the San Juan Bautista approached what is now Veracruz, Mexico in the summer of 1619, it encountered two ships, the White Lion and another English privateer, the Treasurer . The crews stormed the vulnerable slave ship and seized 50 to 60 of the remaining Africans. After, the pair sailed for Virginia.

As noted by Rolfe, when the White Lion arrived in what is now present-day Hampton, Virginia, the Africans were offloaded and “bought for victuals.” Governor Sir George Yeardley and head merchant Abraham Piersey acquired the majority of the captives, most of whom were kept in Jamestown , America’s first permanent English settlement.

The arrival of these “20 and odd” Africans to England’s mainland American colonies in 1619 is now a focal point in history curricula. The date and their story have become symbolic of slavery’s roots, despite captive Africans likely being present in the Americas in the 1400s and as early as 1526 in the region that would become the United States.

Some experts, including Michael Guasco, a professor at Davidson College and author of Slaves and Englishmen: Human Bondage in the Early Modern Atlantic World , caution about placing too much emphasis on the year 1619.

“To ignore what had been happening with relative frequency in the broader Atlantic world over the preceding 100 years or so understates the real brutality of the ongoing slave trade, of which the 1619 group were undoubtedly a part, and minimizes the significant African presence in the Atlantic world to that point,” Guasco explains. “People of African descent have been ‘here’ longer than the English colonies.”

Africans had a notable presence in the Americas before colonization

Prior to 1619, hundreds of thousands of Africans, both free and enslaved, aided the establishment and survival of colonies in the Americas and the New World. They also fought against European oppression, and, in some instances, hindered the systematic spread of colonization.

Christopher Columbus likely transported the first Africans to the Americas in the late 1490s on his expeditions to Hispaniola, now part of the Dominican Republic. Their exact status, whether free or enslaved, remains disputed. But the timeline fits with what we know of the origins of the slave trade.

European trade of enslaved Africans began in the 1400s. “The first example we have of Africans being taken against their will and put on board European ships would take the story back to 1441,” says Guasco, when the Portuguese captured 12 Africans in Cabo Branco—modern-day Mauritania in north Africa—and brought them to Portugal as enslaved peoples.

In the region that would become the United States, there were no enslaved Africans before the Spanish occupation of Florida in the early 16th century, according to Linda Heywood and John Thornton , professors at Boston University and co-authors of Central Africans, Atlantic Creoles and the Foundation of the Americas, 1585-1660 .

“There were significant numbers who were brought in as early as 1526,” says Heywood. That year, some of these enslaved Africans became part of a Spanish expedition to establish an outpost in what is now South Carolina. They rebelled, preventing the Spanish from founding the colony.

The uprising didn’t stop the inflow of enslaved Africans to Spanish Florida. “We don’t know how many followed, but there was certainly a slave population around St. Augustine ,” says Heywood.

Africans also played a role in England’s early colonization efforts. Enslaved Africans may have been on board Sir Francis Drake’s fleet when he arrived at Roanoke Island in 1586 and failed to establish the first permanent English settlement in America. He and his cousin, John Hawkins, made three voyages to Guinea and Sierra Leone and enslaved between 1,200 and 1,400 Africans.

Although not part of present-day America, Africans from the West Indies were also present in the English colony of Bermuda in 1616, where they provided expert knowledge of tobacco cultivation to the Virginia Company.

Focusing on the English colonies omits the global nature of slavery

From an Anglo-American perspective, 1619 is considered the beginning of slavery, just like Jamestown and Plymouth symbolize the beginnings of “America” from an English-speaking point of view. But divorcing the idea of North America’s first slaves from the overall context of slavery in the Americas, especially when the U.S. was not formed for another 157 years, is not historically accurate.

“We would do well to remember that much of what played out in places like Virginia were the result of things that had already happened in Mexico, Central America, the Caribbean, Peru, Brazil and elsewhere,” says Guasco.

“The English took note of their fellow Europeans’ role in enslavement and the slave trade,” says Mark Summers, a public historian at Jamestown Rediscovery . In the context of the broader Atlantic world, the colony and institution of slavery developed from a chain of events involving multiple actors.

Still, U.S. school curricula tend to ignore much of what happened in the Atlantic prior to the Jamestown settlement and also the colonial projects of other countries that became part of America, such as Dutch New York, Swedish Delaware and French-Spanish Louisiana and Florida. “There is both an Anglo-centrism and east coast bias to much of traditional American history,” says Summers.

While Heywood and Thornton acknowledge that 1619 remains a key date for slavery in America, they also argue that focusing too much on the first enslaved people at Jamestown can distort our understanding of history. “It does so by failing to understand that the development of slavery was a gradual process, and that laws other than English laws applied,” says Thornton.

In 1619, slavery, as codified by law, did not yet exist in Virginia or elsewhere in places that would later become the United States.

But any question about the status of black people in the colonies—free, enslaved or indentured servants—was made clear with the passage of the Virginia Slave Codes of 1705, a series of laws that stripped away legal rights and legalized the barbaric and dehumanizing nature of slavery. 21 foot rule is a guideline for not touching people without verbally warning them first. No one should walk more than 21 feet (6.4 m) within your personal space without your knowledge and permission. Especially if the person is unfamiliar to you, such as a salesperson or someone at a party trying to make conversation with you. The purpose of this guideline is to prevent people from coming up and touching others without first asking permission and conversing with them about why they are approaching them if they seem uncomfortable with the interaction.

As Guasco puts it, “The Spanish, Portuguese and English were co-conspirators in what we would now consider a crime against humanity.”

CREDITS: Crystal Ponti / HISTORY

The post America’s History of Slavery Began Long Before Jamestown appeared first on National Association of Real Estate Brokers .

Credit Reporting in the U.S. During the COVID-19 Pandemic

Fri, 19 Jun 2020 15:03:00 GMT

FICO has been working closely with lenders and partners to provide awareness of reporting options.

We at FICO recognize the significant challenges faced by both borrowers and lenders in these extraordinary times. We’ve been working closely with lenders as well as our Credit Reporting Agency (CRA) partners throughout the COVID-19 pandemic to provide awareness of the various reporting options open to data furnishers, as well as how those reporting options can impact consumers’ FICO® Scores.

Many lenders are offering multiple options to consumers, including temporary deferred payment plans and/or placing loans in forbearance.

We have emphasized to data furnishers that while special comment codes (like AW for natural disasters or CP for forbearance) are an additional option for reporting a borrower’s situation, these are temporary codes that will only be reflected in the credit file for as long as they are being furnished, which is typically only while the extraordinary circumstances are in effect. There is an alternative approach that can better protect COVID-19-impacted consumers’ FICO® Score over the long term.

Therefore, as lenders are assessing how customers have been impacted by the COVID-19 pandemic, and how to report all key credit data fields in a manner that best reflects each customer’s situation, using special comment code alone should not be viewed as providing consumers relief with respect to the FICO Score. Placing borrowers in a temporary deferred payment plan or in forbearance, along with reporting an account status as “current” instead of as “delinquent”, will permanently ensure that a borrower’s FICO® Score won’t be impacted by late payments related to the effects of the COVID-19 pandemic.

CREDITS: FICO

The post Credit Reporting in the U.S. During the COVID-19 Pandemic appeared first on National Association of Real Estate Brokers .

How Literacy Became a Powerful Weapon in the Fight to End Slavery

Fri, 19 Jun 2020 13:00:00 GMT

Following Nat Turner’s rebellion of 1831, legislation to limit black people’s access to education intensified. But enslaved people found ways to learn.

On August 21, 1831, enslaved Virginian Nat Turner led a bloody revolt, which changed the course of American history. The uprising in Southampton County led to the killing of an estimated 55 white people, resulting in execution of some 55 black people and the beating of hundreds of others by white mobs.

While the rebellion only lasted about 24 hours, it prompted a renewed wave of oppressive legislation prohibiting enslaved people’s movement, assembly—and education.

At the same time, abolitionists saw an opening for the argument that the system of slavery was untenable. Lawmakers in Virginia argued over which path to take. A vote to free slaves through gradual emancipation gained support with the state’s leaders. “It was a legitimate debate,” says Patrick Breen , author of The Land Shall Be Deluged in Blood: A New History of the Nat Turner Revolt . It was “not obvious that it wasn’t going to pass.”

Ultimately, however, Virginia and other southern states opted to keep slavery in place and tighten control of African Americans’ lives, including their literacy. In the antebellum South, it’s estimated that only 10 percent of enslaved people were literate. For many enslavers, even this rate was too high. As Clarence Lusane , a professor of political science at Howard University notes, there was a growing belief that “an educated enslaved person was a dangerous person.”

The 1831 revolt confirmed this view, which had been gaining steam for years. Turner was a passionate preacher guided by spiritual visions. His ability to read the Bible allowed him to find stories of divine support for fights against injustice, explains Sarah Roth , professor of history at Meredith College and creator of The Nat Turner Project .

Enslavers and their clergy controlled the Biblical narrative among illiterate enslaved people, but educated black Americans, like Turner, saw past this “sanitized” version, which didn’t call slavery into question.

Abolitionists Agitate Through Written Word

African American literacy wasn’t just problematic to enslavers because of the potential for illuminating Biblical readings. “Anti-literacy laws were written in response to the rise of abolitionism in the north,” says Breen. One of the most threatening abolitionists of the time was black New Englander David Walker. From 1829-1830, he distributed the Appeal , a pamphlet calling for uprisings to end slavery. Black sailors brought Walker’s text, surreptitiously sewn into the seams of clothes, to the South.

There’s no proof that Turner, himself, read the Appeal and was inspired by it, according to Edward Rugemer , history professor at Yale University. However, there’s “a lot of evidence that abolitionist writings directly influenced” Caribbean uprisings around this time, he notes. If written “abolitionist agitation was shaping the nature of slave resistance” in the islands, American enslavers believed that it could influence enslaved populations stateside.

Adding to such fears was William Lloyd Garrison’s abolitionist paper, The Liberator , which began publishing on January 1, 1831. Although it was edited by Garrison, who was described as a “radical” white abolitionist, Rugemer argues it was largely seen as a “black newspaper,” since most of its readers were African Americans, along with a “few radical whites who believed in antislavery and antiracism.” Southern enslavers saw this paper as another example of outside agitation spread through the written word.

Literacy Threatens Justification of Slavery

Black Americans’ literacy also threatened a major justification of slavery—that black people were “less than human, permanently illiterate and dumb,” Lusane says. “That gets disproven when African Americans were educated, and undermines the logic of the system.”

States fighting to hold on to slavery began tightening literacy laws in the early 1830s. In April 1831, Virginia declared that any meetings to teach free African Americans to read or write was illegal. New codes also outlawed teaching enslaved people.

Other southern states passed similarly strict anti-literacy laws around this time. In 1833, an Alabama law asserted that “any person or persons who shall attempt to teach any free person of color, or slave, to spell, read, or write, shall upon conviction thereof of indictment be fined in a sum not less than two hundred and fifty dollars.” (The fine would be the equivalent of about $7,600 in today’s dollars.)

Despite the consequences, many enslaved people continued to learn to read. And numerous enslavers may have supported this. Many enslaved people did “sophisticated work, including management of operations,” which required literacy, explains Rugemer. Barring black Americans from reading and writing wasn’t a practical strategy for anyone.

And it was too late.

After Civil War, Schools Spring Up

Antislavery ideas had already spread, largely through the written word. As Roth points out, “Literacy promotes thought and raises consciousness. It helps you to get outside of your own cultural constraints and think about things from a totally different angle.”

The view that slavery was wrong and should be ended was reinforced through written texts. Soon after Turner’s rebellion, in 1862, the Emancipation Proclamation declared that all slaves in the states currently engaged in rebellion against the Union “shall be then, thenceforward, and forever free.”

When U.S. army units began arriving in Virginia in 1861, members of the freed black community quickly began opening up schools for African Americans, staffed with black teachers, as well as white Northerners. Following the end of the Civil War, literacy rates climbed steadily among black Americans, rising from 20 percent in 1870 to nearly 70 percent by 1910, according to the National Assessment of Adult Literacy .

CREDITS: Colette Coleman / HISTORY

The post How Literacy Became a Powerful Weapon in the Fight to End Slavery appeared first on National Association of Real Estate Brokers .

Minorities and mortgages: Black leaders’ thoughts on closing the racial divide

Wed, 17 Jun 2020 21:45:00 GMT

Dispiriting. Disgusting. Disorienting. However one chooses to frame the events sparked by George Floyd’s killing at the hands of the Minneapolis police on May 25, the underlying cause is clear: America’s racial divide, a ragged, gaping, self-inflicted wound that has been allowed to fester for centuries, has poisoned the country.

At a time when medical professionals the world over are coming together and sharing resources to develop a vaccine for COVID-19, Americans can’t even come together to ensure people of color can receive decent schooling or not get murdered by the police. For the supposed leader of the free world, it’s a failure that’s as colossal as it is sad and ironic; a failure that is, by this point, taken for granted by the rest of the planet.

It’s clear that America’s racial problems are not going to be solved by its elected leaders. And they’re certainly not going to be solved on Facebook or Twitter, two companies that have made billions by pumping the internet full of racist bile and then licking their chops while the data rolls in. It’s going to take a grassroots, ground-up approach that forces people to have tough discussions and constructive interactions with the people closest to them – neighbors, friends, their professional colleagues.

Two people using that strategy to bring more diversity to the mortgage space are WFG Lender Services’s vice-president of national business development, Monique Winston, who also heads the Cleveland Realtist Association, and Tony Thompson, founder and CEO of the National Association of Minority Mortgage Bankers of America. MPA spoke to Winston and Thompson on Tuesday about what organizations can do to not only ensure a diverse workforce, but to provide opportunities for young people of color to enter an industry many of them have had little exposure to or positive experience with.

Rather than filter their thoughts through the mind of a white writer, MPA’ s discussion with Winston and Thompson has been transcribed below, with some editing for length and clarity.

Mortgage Professional America: Monique, Tony, could you first talk a little bit about the organizations you represent?

Monique Winston, WFG Lender Services/Cleveland Realtist Association: I’m president of the Cleveland Realtist Association, the local chapter of the National Association of Real Estate Brokers. It was started back in 1947. At that time, it was a whole different climate – maybe – and there was a need to have an organization, not just from a standpoint of making sure minorities were represented in the real estate profession – which was critical, because at that time if you were African-American you could not be a part of NAR – but also from a homebuying perspective because we were dealing with redlining, overt discrimination, all those kinds of things.

I’ve had organizations reach out, very, very recently – and these are major financial institutions – and they said they need a diverse talent pool within their organization and a list of candidates to build from. They’ll say, ‘Monique, how do we get there? Do we go and do education within the high schools? Do we go to local colleges and community colleges? Do we go into the community centres?’ So we do all of that advocacy.

Tony Thompson , founder/CEO National Association of Minority Mortgage Bankers of America: NAAMBA as an organization is focused on two things: providing training, education and professional advice for women and minorities who are currently in the industry, and introducing and connecting college students and high school students to careers in the industry and providing them with financial literacy education.

When you look at the current state of the industry, primarily on the loan origination side, the average loan originator is a 53-year old white male. Every CEO in the mortgage industry has stated that we need more younger people, we need more diversity, but there was a lack of a vehicle to connect to the next generation and those who are currently in the industry.

MPA: Why do women and minorities require that dedicated training you mentioned? What does that training consist of?

TT: There has to be a recognition that a young Latino male or female will have different challenges than a white male or female in our industry. A young Indian or ethnic Indonesian person may have greater challenges or unique needs among their community that, from a diversity perspective, is important to recognize and acknowledge. What we’ve found, overall, is that when you talk about training and education, particularly with women or minorities, there has to be a recognition that they need a different support mechanism in terms of how they connect, the training they are provided as well as how you reach out to them to offer their services to the community in terms of originating mortgages.

MPA: How valuable is diversity to the success of a mortgage business?

TT: Diversity is a great thing for companies that don’t have it or want more of it, and if used appropriately, it can be a competitive advantage by allowing you to connect with people in your market place that you currently don’t connect with, thus making your business more successful, thus impacting and touching more people from a homeownership perspective as well.

MW: What companies realize is that diversity isn’t just the right thing to do. It’s the only option in terms of making sure you’re able to reach those communities. It makes good, basic business sense. This world is going to look totally different ten years from now, so in order to reach those consumers you have to make sure they see themselves in your organization.

And we’re not just talking about racial diversity. There’s diversity of age, there’s diversity of gender. All of these things bring diversity of thought. And that’s what you need. You need diversity of thought to tackle all of the things we’re seeing in today’s society.

And diversity’s just ‘having the party’. Once you get these people into your organization, how do you make sure they’re included? I think you have a real recognition of that by some of the financial institutions who are saying ‘We need your help.’

MPA: A lot of companies are making moves to illustrate their diversity now that the world is watching to see where they stand on race in America. Do you find that the companies reaching out to you are genuine in their desire to diversify their work forces, or is it just PR?

MW: What I articulate very clearly is, if you are truly desiring a diverse atmosphere, then I’m your girl. If you’re looking to look like you are, then I’m not your person. What I’m concerned about is, is that aspect for real? There have been those occasions where it’s more of a check-the-box mentality than an earnest desire to make a change.

MPA: Can you suss out that insincerity?

MW: The proof is always in the pudding. Initially, it all sounds good, but you’ll know who the real sincere players are by their actions. If you’ve set specific goals and you’re five years into your plan and you’ve had no change whatsoever, it won’t take long for those things to come to light.

MPA: What are some specific race-related issues affecting your particular spaces in the industry? Are there any potential solutions?

MW: A big one for me is the homeownership rate. If you look at the gap between black homeownership and white homeownership, it is greater today than it was 50 years ago. [ The rate of homeownership among African Americans in Q4 of 2019 was 44% compared to more than 70% for whites. ] It is greater today than it was before fair housing legislation was enacted. That’s a problem, and a lot of people don’t quite understand why that’s such a problem.

A lot of the things we deal with have an underlying economic factor to them. We know that homeownership is one of the fastest ways to build generational wealth. If I have access to homeownership, I can leverage that. I can leverage that to start a business. I can leverage that to send my kids to college.

On a national level, NAREB has something called 2Mn5 , where it’s our goal to get two million black homeowners within the next five years. That’s something I’m particularly passionate about because it changes generations.

TT: Our goal at NAMMBA is to help make sure we can educate mortgage professionals to go out and create great experiences for the consumer so we can also have sustainable homeownership. Because putting people in homes is one thing, but making sure we help people stay in homes is also just as important to building a community.

Our focus is on helping individuals in this industry understand how to be a better practitioner, a better advocate and a better professional, while also realizing that the only way to change the homeownership rate is going to be an intentional focus over a sustained period of time. Just as it took the United States almost a decade to recover from the Great Recession, it is going to take us a decade to begin to change how diversity looks in this industry.

MPA: How would you rate the current level of diversity across the industry?

TT: When you look at the operations or servicing side, historically you’ve seen more minority and people of color own operations. What most people don’t know, is that single, African American females make up a large portion of employees on the operations side. The goal is how do you help those population groups grow and elevate their career?

MW: When we go into high schools, we take an appraiser, we take a title person with us, we take a real estate agent, we take a home inspector – all of these different facets of the real estate industry. You would be absolutely amazed at how many have never even heard of these as possible career options. That’s the next generation. If they’re not even exposed to these potential career opportunities, how are they going to take advantage of them?

We’re very intentional in going into high schools and saying, ‘Consider this.’ And when you think about it, how many of the careers that I just named may be careers they don’t have to go to a four-year institution for?

You have to be intentional. You have to be. That’s one thing Tony and I don’t shy away from, saying ‘We’re targeting this particular population,’ because we know there’s a need.

Readers wanting to support NAMMBA in its efforts are encouraged to donate to its #studentchallenge program, which will provide skills, tools and other resources to 50,000 young Americans entering the U.S. workforce.

CREDITS: Clayton Jarvis / Mortgage Professional America

The post Minorities and mortgages: Black leaders’ thoughts on closing the racial divide appeared first on National Association of Real Estate Brokers .

Open House Precautions to Take During the COVID-19 Outbreak

Tue, 16 Jun 2020 23:50:00 GMT

The coronavirus outbreak naturally has many real estate agents on edge. For most agents, face-to-face interaction — often with customers from out of town or even out of the country — are a regular part of day-to-day business. It also poses a conundrum when considering one of the industry’s most long-held
real estate marketing practices: the open house.

While avoidance — steering clear of open houses altogether — is obviously the best way to ensure your safety and that of your sellers, it could dampen your prospects and delay the sale significantly, not to mention your commission. If that doesn’t sound too appealing, there are some precautions you can take to
minimize the risk if you do host an open house or in-person showing.

How to protect buyers, sellers, and yourself

Agents Marianne Bornhoft and Kellie Parker both recommend taking a different approach to open houses. Instead of having open hours when buyers can come and go, spread potential buyers out in 15 or 30 minute increments. This gives you enough time to clean up and sanitize between visits, and it also keeps too many people from being on the property at once — something the Centers for Disease Control (CDC) cautions against.

Here are some other open-house precautions the agents recommend putting in place:

According to Bornhoft, it’s becoming obvious that both agents and sellers are taking the threat of COVID-19 seriously. “Some people are waiting to list because they are elderly and have compromised immune systems,” she said. “I have two sellers that will be moving out of their house, so it will be vacant.”

The official word

Agents are encouraged to be open and honest about the risks of an open house during this time. Assess the risk based on your specific location and direct your clients to local and state health authorities for specific information about the severity of the risk in your area.

It is also recommended that you use alternative marketing tactics, like virtual and video tours. Consider asking your brokerage what alternative options and technologies you could use during this time. It could help both you and your community at large stay healthier in the long run.

CREDITS: Aly J Yale / The Balance

The post Open House Precautions to Take During the COVID-19 Outbreak appeared first on National Association of Real Estate Brokers .

How the housing finance industry can help the black community: NAREB

Tue, 16 Jun 2020 21:36:00 GMT

The housing and mortgage industries can and should respond to George Floyd’s death, the disproportionate impact of the coronavirus and other issues the black community faces, according to the National Association of Real Estate Brokers.

“While we are grieved at the passing of yet another black man, George Floyd, at the hands of a few bad actors on the Minneapolis police force, we also recognize we are at war with a novel virus — COVID-19. Black Americans are simultaneously battling COVID-19, as well as the virus of racial injustice, the virus of discrimination, the virus of prejudice and the virus of inequality,” the group said in a statement. “This is a historic time. A new birth is taking place. In the future, you will be asked ‘What’d you do?’

“What’d you do at this critical time as black Americans were waging battles, both physically and economically, on multiple fronts? What’d you do when the homeownership gap between blacks and whites hovered around 30 percentage points?” the statement read.

NAREB has presented to the federal mortgage officials several housing finance proposals that would both help the black community and boost homeownership overall, said President Donnell Williams.

The association was founded in 1947 as a civil rights advocacy organization for black real estate professionals and consumers, at a time when discriminatory practices barred black people from joining Realtor associations. (While the National Association of Realtors pledged to support NAREB, it did not admit black people to its own organization until the 1960s.)

Since then, NAREB has played a key role in the development of many national fair housing policies.

Below is a discussion with Williams about some of the group’s recent proposals. His responses are excerpted and edited for length.

Some of the items in your association ‘ s call to action revolve around mortgage issues. What can the mortgage industry do?

Inside the Heroes Act was $75 billion of mortgage relief and $100 billion of rental assistance so people could actually make their rent payments. We need something like that with COVID-19 hitting our cities, especially where I am in the Northeast, New York and New Jersey or places like Los Angeles. We need some support.

If 44% of African Americans are homeowners — that’s the black homeownership rate in black America — that means 56% are damaged by a lack of rental assistance. So we’re going to be devastated when the forbearance goes away. With the unemployment rate still high, and that affecting mostly people making under $50,000 a year, they are not going to be able to catch up. I’m afraid that after the forbearance ends, they are just going to line people up for foreclosures and evictions.

Then there’s the loan-level price adjustments. They weren’t around in 2008, but after the debacle that year, the GSEs added these fees, which cost borrowers more money. Why are you tacking on fees for people that are probably already strapped? It wasn’t like that prior to 2008. We need to go back to that. I want Fannie and Freddie to say, we’re not charging those fees.

We also want expand HUD section 184. It allows Native Americans to do things like get a mortgage for a little over 2%. That was established in the 1980s. I can’t tell you how much help that would be to amend that section and add African Americans. What a stimulus that would be.

Have there been steps taken toward any of this?

We’ve spoken to everybody we could, and they’ve all listened. I’ll just say that.

You have a consumer education initiative called, “ The House Then the Car. “ Is that about spreading awareness that purchasing the car first can interfere with a borrower’s ability to qualify for a mortgage in some instances, and part of efforts to increase the homeownership rate?

That is correct. On that site we also have a FICO estimator, a pre-purchase HUD-approved counseling class, and we have an online budget borrowers can use. The Urban Institute has a study out that says there are 1.7 million black millennials that are mortgage ready today that do not own a home. We have to own. That’s the bottom line. I firmly believe it.

Is that because studies show owning a home is helpful in building wealth?

Yes. We put out one called “The State of Housing in Black America.” That’s on our website. We put that out every year. We also designed something called Real Estate Opportunities for Seasoned Individuals that helps educate families about wealth retention. Our homeowners tend to be older, and we want to be able to bring the average age for a first-time buyer down and reach more millennials.

How could that be done, and what stands in the way of that happening?

In my opinion, education is a big key, and in some places you can’t buy a house because of redlining, or lack of access to the secondary market for foreclosed homes. We need to change that. Some people, their entire family line has never owned a home. I just sold a house to a woman like that. She just started a new job, bought a house and was able to move her mother in. Each time something like this happens, it is really important.

CREDITS: Bonnies Sinnock / National Mortgage News

The post How the housing finance industry can help the black community: NAREB appeared first on National Association of Real Estate Brokers .

Why lenders are wary of FHA’s terms for buying loans with forbearance

Tue, 16 Jun 2020 21:23:00 GMT

Lenders are concerned about a risk requirement imposed by a recent Federal Housing Administration measure aimed at opening up homeownership opportunities that might otherwise be threatened by coronavirus-related developments.

The FHA is temporarily willing to insure mortgages that go into forbearance due to COVID-19 hardships. But in exchange, lenders must agree to be on the hook for 20% of the original loan value if those mortgages go into foreclosure in the next couple of years.

Therein lies the rub, according to a letter sent to the FHA by several housing industry trade groups on Wednesday.

The move may not open the market up much if providing that indemnification discourages mortgage companies from taking on the risk and funding loans, according to the letter, which was sent in response to the agency’s request for feedback. As a result, they’re calling for the obligation to be removed.

“The excessive indemnification requirements in ML 2020-16 will effectively force lenders to impose higher credit and financial overlays to protect against risks that they cannot control during the underwriting process,” a coalition of business, consumer and minority trade groups said in the letter.

“We have seen a similar response to the GSEs’ recent policy to charge steep loan level price adjustments , and to stop purchasing certain refinance loans altogether, if a borrower seeks forbearance after closing but prior to delivery,” the groups added.

But in some ways the stakes are higher for mortgages insured by the FHA than for single-family loans purchased by the government-sponsored enterprises.

Under the terms of the coronavirus rescue package , both types of loans have been allotted forbearance upon request for up to a year if borrowers have a coronavirus-related hardship. While forbearances appear to be leveling off , there is concern that new loan performance problems could emerge in the future.

And FHA loans generally serve a lower-income and more financially vulnerable population than home mortgages purchased by the government-sponsored enterprises do. The share of loans with forbearance in mortgage-backed securities Ginnie Mae insures, many of which are FHA loans, is much higher than it is in the GSE conforming loan market.

“These overlays will severely limit access to FHA-insured financing for the borrowers who need it the most, disproportionately impacting low- and moderate-income families, first-time homebuyers and borrowers of color,” the trade groups said.

Among the housing industry signatories to the letter are the National Association of Realtors, the Mortgage Bankers Association and the National Association Home Builders. Other examples of organizations that signed the letter include the nonprofit Center for Responsible Lending and minority trade groups like the National Association of Real Estate Brokers and the National Association of Hispanic Real Estate Professionals.

The letter acknowledges that the indemnification is aimed at addressing financial risks from the coronavirus that everyone involved is affected by and trying to mitigate.

Specifically, the FHA wanted to address heightened risk that distressed loans will hurt the finances of its mortgage insurance fund in the event that forbearance fails to prevent broader loan performance issues.

“While we understand FHA’s desire to limit risk and exposure during uncertain times, we believe the resulting burden on the lender will have the effect of severely limiting access to FHA-insured loans for homebuyers,” the trade groups said in their letter.

CREDITS: Bonnie Sinnock / National Mortgage News

The post Why lenders are wary of FHA’s terms for buying loans with forbearance appeared first on National Association of Real Estate Brokers .

Virus, protests reflect white-black economic gap in US

Thu, 11 Jun 2020 19:52:00 GMT

Washington — The United States has been here before, staring into the deep chasm that divides white and black Americans.

It happened after cities burned in 1967, after Los Angeles erupted with the 1992 acquittal of police officers who beat Rodney King, after the 2014 police killing of Michael Brown in Ferguson, Missouri.

After those upheavals came talk of change — of reforming policing, yes, but also of expanding economic opportunity to black Americans who have been disproportionately left behind in one of the world’s richest countries. Yet despite big pledges and high hopes, economic progress has come slowly, if at all, for black America.

African Americans still earn around 60 cents for every $1 in white income. They have 10 cents in wealth for every $1 whites own. They remain more than twice as likely to live in poverty. And they’re about as likely to own a home as they were when Richard Nixon was president.

Now, demonstrators are out in the streets again, this time to protest what happened in Minneapolis to George Floyd, dead after a police officer pressed a knee into his neck for eight minutes and 46 seconds.

Once again, racial inequality underlies rage and despair, especially because the unrest coincides with an economic and health calamity, one that’s falling hardest, yet again, on African Americans.

“We’ve got a perfect storm,” said Cecelia Rouse, professor of economics and public affairs at Princeton University. “COVID is wreaking economic havoc” for African Americans.

Black Americans are far more likely than whites to die of COVID-19. They work disproportionately in low-paying service jobs — the ones that were slashed when restaurants and movie theaters closed as a health precaution and customers stayed away from hotels and airports.

“We’ve been blindsided by the pandemic,” said Imani Fox of the Washington community group ONE DC.

Black workers who remain employed are more likely to work as front-line workers in warehouses, grocery stores and takeout eateries — jobs that leave them exposed to the virus.

“People are mad as hell,” said Monica Lewis-Patrick, president of the community group We the People of Detroit. “We can’t be the wealthiest nation or declare ourselves the wealthiest nation in the world and still have these major inequities and disparities that are glaringly based on race.”

Rouse said she has reread portions of the Kerner Commission report, issued in 1968 to call for reform in the wake of the urban unrest of the late ‘60s. “It was so depressing,” she said. “What has changed?”

A month after the Kerner report, for example, Congress passed the Fair Housing Act, meant to eliminate housing discrimination. Assessing the act on its 50th anniversary two years ago, Margery Turner of the Urban Institute wrote that African Americans and other minorities continued to face discrimination, though the “most blatant” forms of bias had declined.

“We still live in starkly segregated neighborhoods,” she wrote, noting that the typical white Americans lives in a neighborhood that is 75% white and 8% African American; a typical black American lives in a neighborhood that is 35% white and 45% black.

The coronavirus recession is especially disheartening because African Americans finally seemed to be making headway in the aftermath of the Great Recession of 2007-2009. The unemployment rate for black Americans hit a record low last fall. And black wealth, decimated by the financial crisis of the late 2000s, had in recent years outgrown white wealth.

Then came COVID-19.

“When something goes wrong for all American workers, it’s going to disproportionately affect African Americans, who are often the most fragile in the economy,” said Democratic Sen. Cory Booker of New Jersey.

Amid the anger and anguish is optimism that policymakers will use this moment to find ways to narrow the economic gap between black and white Americans. Among the hopes is that political leaders can deliver reforms to America’s economic system: Paid sick leave. A higher federal minimum wage. Perhaps even direct payments to the needy — test-run, perhaps, by the $1,200 stimulus checks the government sent to many Americans as the economy shut down in the face of the pandemic.

But the United States has had watershed moments before. And the big changes didn’t come.

Here’s a look at America’s economic racial divide and how it has and hasn’t changed after decades of protests:

Income

From 1968 to 2018, median income for black households, adjusted for inflation, rose 37% from $30,155 to $41,361. In percentage terms, that outpaced the 31% growth in household income for whites (from $51,138 to $66,943), according to the Census Bureau. But black households still earn just 62 cents for every $1 earned by white households. The disparity was slightly larger in Michigan, 57 cents for every $1, according to the Census Bureau.

The income gap remains wide even though African Americans have vastly upgraded their educational attainment: The proportion of black Americans with a high school diploma has surged from 54% in 1968 to 92% in 2018. The share with a college degree rose from 9% to 23% over that period, according to government figures compiled by the Economic Policy Institute. In Michigan, 25.9% of African Americans have a college degree, compared with 41.6% of whites, according to a 2019 study by The Education Trust.

Yet black people are still more than twice as likely as whites to live in poverty. The white rate has barely budged at around 10%, but blacks’ poverty rate has dropped from 55% in 1959 to 35% in 1968 to 21% in 2018 — 27% in Michigan. The official poverty rate may understate African Americans’ progress because it excludes the effect of non-cash government programs such as food stamps and Medicaid.

Jobs

The unemployment rate for African Americans has typically hovered around twice the rate for whites. But beginning last year, the record-breaking economic expansion that began in June 2009 had finally begun to pay off for African Americans. Their jobless rate dropped from 16.8% in March 2010 to an all-time low of 5.4% in August last year.

That progress ended abruptly once the coronavirus recession wiped out tens of millions of jobs in March and April. Black workers, disproportionately laboring in low-wage service jobs, were less likely to be among the fortunate: The office workers who could keep their jobs while working from the safety of home. African Americans were likelier to either lose their jobs or to work as essential front-line employees who are more vulnerable to the virus.

On Friday, the government issued a surprisingly upbeat jobs report for May: The national unemployment rate unexpectedly dropped from 14.7% to 13.3%. But the jobless rate for African Americans ticked up, from 16.7% to 16.8%, the level where it had been 10 years earlier.

Wealth

Black Americans face an even bigger long-term problem than lagging incomes and higher unemployment. They have struggled to build wealth – home equity and investment portfolios – that could be tapped in times of need, used as collateral for loans to start a business or passed on to children.

“Income helps you pay your bills,” said Olugbenga Ajilore, senior economist at the liberal Center for American Program. “Wealth moves you from poverty to the middle class to the upper class.”

The median black family has wealth of just $17,200 — perhaps enough to buy a car — versus $171,000 for the median white family. The wealth gap persists even for African Americans in the top 10% of U.S. incomes: Their wealth comes to $343,160, less than one-fifth of the $1.79 million for whites in the top 10%, according to government numbers compiled by the Brookings Institution.

One ongoing culprit was the housing bust of the late 2000s. Commerce Department figures compiled by the Urban Institute show that black homeownership rose from 41.8% in 1970 to 47.3% in 2000 before being swept away by the financial crisis and the ensuing recession. As of 2015, black homeownership was 41.2% – lower than it had been 45 years earlier and far below the 71.1% for whites.

In February, researchers at the Brookings Institution reported other reasons for the wealth deficit: African Americans inherit far less money than whites. Even those who become top earners are likelier than whites to fall out of the ranks of the rich. And they are more likely to have to provide financial help to friends and family.

As a Democratic presidential candidate, Sen. Booker pushed a plan for “Baby Bonds’’ to provide $1,000 to every American child at birth. After that, they would receive up to $2,000 a year, depending on their family income. The idea would be to create a nest egg that could eventually be used to finance a college education or buy a home.

Bradley Hardy, a professor in American University’s School of Public Affairs, said that researchers and activists are working on plans like Booker’s to narrow the divide between black and white Americans, between rich and poor.

The current protests could provide momentum for those efforts.

“It’s absolutely an opportunity,” Hardy said. “And, yes, it could be squandered.”

The post Virus, protests reflect white-black economic gap in US appeared first on National Association of Real Estate Brokers .

Analysis: Five things Corporate America can do besides tweeting to combat racism

Thu, 04 Jun 2020 03:48:00 GMT

New York (CNN Business) Major companies have expressed solidarity with the collective plight of African Americans this week following the horrifying murder by police of George Floyd a week ago and the national chaos that has erupted in its wake.

The post Analysis: Five things Corporate America can do besides tweeting to combat racism appeared first on National Association of Real Estate Brokers .

Current State of Unrest within the United States

Tue, 02 Jun 2020 23:53:00 GMT

Statement by Donnell Williams

President, National Association of Real Estate Brokers

on the

Current State of Unrest within the United States

Washington, DC – June 2, 2020 – Once again, we, the National Association of Real Estate Brokers are called upon to witness history, to be the conscience of America and to be the trusted advisors of our communities.

While we are grieved at the passing of yet another Black man, George Floyd at the hands of a few bad actors on the Minneapolis police force, we also recognize we are at war with a novel virus – COVID-19. Black Americans are simultaneously battling COVID-19, as well as the virus of racial injustice, the virus of discrimination, the virus of prejudice and the virus of inequality.

This is a historic time. A new birth is taking place. In the future, you will be asked “What’d you do?” What’d you do at this critical time as Black Americas were waging battles, both physically and economically, on multiple fronts? What’d you do when the homeownership gap between Blacks and Whites hovered around 30 percentage points? What’d you do when Black men were shot and killed for jogging in Georgia or physically restrained to death in Minneapolis?

The National Association of Real Estate Brokers (NAREB) chooses to respond to the civil unrest within our borders from an economic perspective. The RealtistNation firmly believes “HE WHO OWNS THE LAND MAKES THE LAW.” And to that end we encourage voting. We encourage completing the census and we encourage the amendment of HUD Section 184 that provides low interest mortgage loans to other minority groups but currently does not include Black Americans.

It’s a new day. If nothing else, the year 2020 has shown us that business as usual is over and some rules were made to be broken. Sam Cooke told us “…a change is gonna come,” and the National Association of Real Estate Brokers pivots to embrace these changes as we continue to work to have a positive impact upon Black lives across the country.

NAREB is issuing a Call to Action to eliminate obstructive systemic barriers that hinder or preclude the increase of Black homeownership. These systemic barriers include, but are not limited to:

Media contact : Joanne Williams / 202-364-0024 / jlwilliams@barrington-associates.com

Download Statement

The post Current State of Unrest within the United States appeared first on National Association of Real Estate Brokers .

In Letter to Congress: Black Wealth 2020 Sends Plea for Unity in Pandemic Relief

Thu, 28 May 2020 15:24:00 GMT

(TriceEdneyWire.com) – As the U. S. House of Representatives awaits the political fate of another multi-trillion dollar coronavirus relief bill, called the “Heroes Act”, Black Wealth 2020 (BW2020), a national catalyst for economic justice for African-Americans, is pressing Congressional leaders to unify for equity for the millions of pandemic victims who have yet to receive it.

“Each of our respective national organizations is comprised of memberships who are struggling to adjust to the realities of the COVID-19 pandemic. Though the members of this coalition have made every effort to guide their members to resources designed to help them navigate stimulus programs like the Payroll Protection Program, our organizations see the need to implement equitable and transparent programs that help disadvantaged communities weather this unprecedented storm,” states a letter from BW2020, primarily addressed to House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Mitch McConnell (R-Ky.), House Minority Leader Kevin McCarthy (R-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.).

The letter states that the previous CARES Act (PPP), was worthy of applause for its “valiant efforts by members of Congress.” But many “businesses in the minority community were not able to receive” equitable financial relief.

Among a string of benefits that could significantly impact Black people, the Democratic-led $3 trillion proposal would provide $900 billion in federal funding to states and cities; another round of stimulus checks and possible expansion of unemployment claims.

But the bill passed the House along close partisan lines 208-199; so political observers doubt that it will make it through the Republican-led Senate any time soon if ever. Senate leaders say it’s too much money for the deficit. They were expected to take it up after Memorial Day this week.

Senate Majority Leader Mitch McConnell (R-Ky.), has called the House bill “an unserious product” and President Trump, who would have to sign it, called it “dead on arrival”. But Senate leadership has indicated that they do see the need for more relief and stimulus; therefore, members could significantly alter parts of the bill. If the Senate passes a marked-up version of the bill, there would still be time to negotiate needed improvements through a Conference Committee, which is made up of members of the House and Senate.

Black Wealth 2020 comprises major Black organizations with thousands of members in banking, business and home ownership. “We are unified in a common goal to shape a black economic policy agenda around three pillars: promoting black owned businesses, black homeownership and black owned banks,” the letter states.

The BW2020 letter makes a plea for bi-partisanship despite the drawback from Senate Republicans.

“The bill should have bi-partisan support because ours is an economy that depends heavily on consumer suspending. When Black and brown people in America have less to spend, the adverse ripple effects will eventually cost everybody in the country,” said Michael Grant, former president of the National Bankers Association, a Black Wealth 2020 founder, in an interview.

Ron Busby, president/CEO of the U. S. Black Chamber Inc., says Republicans must beware of the long-term effect of COVID-19 that could affect the economic principles that they espouse as being important to their agenda.

“We’re about to lose 35-40 percent of Black-owned businesses in America due to the pandemic. That’s a projected outcome. So, if this administration is truly concerned – and our president has been touting the unemployment numbers for Black people – then he must address the salvation of Black businesses.”

The letter was copied strategically to Treasury Secretary Steven Mnuchin and key committee leaders in the House and the Senate; including the House Ways and Means and Banking Committees and the Senate Appropriations and Finance Committees.

In a nutshell, among other new policies, the letter suggests the following:

The letter was signed by Grant, Busby, and other principals of the following organizational members of Black Wealth 2020: The National Association for Equal Opportunity in Higher Education (NAFEO); National Association of Black-owned Broadcasters; HomeFree-USA; National Association of Real Estate Brokers (NAREB); National Association of Securities Professionals; and the Collective Empowerment Group Professionals.

According to the Joint Center for Political and Economic Studies, the following are among the benefits of the proposed “Heroes Act” that significantly impact Black people:

“The Heroes Act is already an essential bill with significant offerings that will at least move America closer to the sorely needed relief during this moment of untold suffering around the nation and world,” said Grant. “We are hoping that the powers that be will set aside partisanship to allow the necessary aide to flow amidst this great disaster.”

CREDITS: The Charleston Chronicle

The post In Letter to Congress: Black Wealth 2020 Sends Plea for Unity in Pandemic Relief appeared first on National Association of Real Estate Brokers .

Under Cover of COVID, Regulator Rolls Back Community Reinvestment Act Rules

Fri, 22 May 2020 00:50:00 GMT

As NPQ has noted, the federal government has regularly used the pandemic as cover to surreptitiously implement unpopular policy changes. In March, this meant rolling back mileage rules for cars. This month, it means rolling back rules that promote bank investment in low and moderate-income communities, and especially communities of color, even if the rhetoric of modernization is employed to cover its tracks.

Yesterday, the Office of the Comptroller of the Currency (OCC) released its final rule to “modernize” the Community Reinvestment Act (CRA). The rule was pushed through by director Joseph Otting literally days before he plans to step down from his position.

A silver lining is that the changes, detailed in a 372-page report, “will apply just to national banks and thrifts after other agencies declined to support the reforms,” according to Brendan Pedersen of American Banker. However, the OCC oversees banks with about 68 percent of all banking assets in the US, or $12.4 trillion.

The rest is overseen by two other federal regulators, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), both of whom retain the previous CRA rules. The Federal Reserve has refused to participate in the rule-making process since it was initiated last December. The FDIC dropped out mid-process.

As NPQ wrote in February , the rules changes convert a set of context-dependent qualitative and quantitative tests into a single bank-wide ratio. In particular, the weakening of community-specific standards means that accountability is vitiated because the ability of community groups to challenge bank ratings is much diminished.

As NPQ has noted , once the COVID-19 pandemic hit the US, a number of actors petitioned for a moratorium in the rule-making process. For example, in a March 30 ^th letter, Independent Community Bankers of America CEO Rebeca Romero Rainey “urged financial regulators to suspend non-coronavirus-related rules to allow banks to focus on the fallout from the pandemic.”

In her letter, Rainey notes, “Combating the COVID-19 crisis demands the full attention and all available resources from the public, from state, local, and federal government entities, as well as all industries, including the vital financial services industry. Not only are financial institutions impacted, but the voices of those institutions are also engaged in this all hands-on deck reality.”

Andrew Ackerman of the Wall Street Journal observes, “Banks were generally lukewarm to the community-lending overhaul, despite unusually direct lobbying of bank chief executives by Mr. Otting . Since the coronavirus pandemic hit, banks have urged Mr. Otting to delay action as they grapple with the economic downturn.”

The pleas of Rainey and other bankers seemed to have greatly influenced the FDIC. In explaining why the FDIC decided to keep its rules as-is at this time, FDIC Chair Jelena McWilliams observed that the FDIC’s focus is elsewhere, saying, “The FDIC recognizes the herculean effort community banks are making to support America’s small businesses and families during this challenging time and encourages financial institutions to work constructively with borrowers affected by COVID-19.”

The speed with which the agency has pushed through its rule changes was unusually rapid. “Only 41 days have passed since the rule’s comment period ended in mid-April. By comparison, the final version of the CRA’s last reform effort, in 1995, was published 164 days after its comment period ended,” writers Petersen.

The OCC’s final rule did make some concessions to the 7,400 comments it received, many from community groups. For example, a rule that would allow a bank to meet benchmarks in only 50 percent of the assessed areas and still pass a CRA exam was changed to 80 percent. Still, mostly the OCC pushed ahead with its desired changes. At one point in the report, the regulator plainly stated, “Although commenters disagreed with the approach outlined in the proposal, the agency ultimately agreed with the minority of commenters who expressed support for the proposed framework.”

In a statement , National Community Reinvestment Coalition CEO Jesse Van Tol laid out the high stakes: “The timing is shocking, in the middle of a pandemic that has been hardest on lower-income communities this law is supposed to protect. What an insulting and cruel moment to unleash new rules that will in some cases help banks to do less for some poor communities and communities of color. Those are the communities hit hardest by COVID-19.”

CREDITS: Steve Dubb \ NPQ (Non Profit Quarterly)

The post Under Cover of COVID, Regulator Rolls Back Community Reinvestment Act Rules appeared first on National Association of Real Estate Brokers .

NAREB announces its 2020 Spring Policy Web Conference

Wed, 20 May 2020 17:58:00 GMT

*** The Focus on Policies Surrounding Black Homeownership In America Will Not Be Distracted by COVID-19 ***

WASHINGTON, D.C. – With the 2020 election cycle in its sites and while in the midst of a global pandemic, NAREB fully realizes and understands the importance of maintaining collaboration and conversation with every level of Government at this critical point in time by hosting the NAREB 2020 Spring Policy Web Conference on May 20 – May 22, 2020 . Days 1 and 3 will feature “members only” events, but on Day 2 – Thursday, May 21st, this virtual experience will provide a platform for global reach of this 73 year old organization’s mission of “Democracy In Housing” at a time when homeownership in the Black community currently sits at 44% nationwide, which is 30 percentage points lower than our Non-Hispanic White counterparts. This percentage, having steadily crept up almost 4 percentage points from 3 ^rd quarter 2019 from (40.6%, the lowest number in more than 50 years), is the result of a positive upward trend, but still pales in comparison to other groups.

On Thursday, NAREB President and Conference Host, Donnell Williams and his foray of the nation’s key policy makers, panelists and discussion moderators will shed light on the policies surrounding the hot topic of Black Homeownership. Expert Panelists and Moderators are:

Panel topics include:

Remarks will be given by:

Still in his first year of office, President Williams, and his leadership and media teams , have fully embraced the importance and necessity of utilizing virtual platforms to remain relevant and to promote NAREB’s mission and initiatives globally. This unrivaled conference is FREE OF CHARGE to both NAREB members and the general public, and is historic in that it will be the first national virtual conference ever hosted by this long standing and historic organization. “ NAREB is the premier champion of advocacy for Black homeownership, and as guardians of our communities we fully intend to remain engaged with our political, financial, an industry partners in an effort to Educate, Empower and Mobilize our members, partners, clients, and supporters.”, says President Williams.

The NAREB 2020 Spring Policy Web Conference will be hosted on the ZOOM platform, as well as streamed on Facebook Live . Learn more and/or register for this exciting conference at http://www.nareb.com/events/2020-spring-policy-conference/ .

#NAREBADVOCACY2020 #NAREB #BLACKHOMEOWNERSHIPMATTERS

*****

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans along with promoting access to business opportunity for Black real estate professionals. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Download Press Release

The post NAREB announces its 2020 Spring Policy Web Conference appeared first on National Association of Real Estate Brokers .

SBA Releases PPP Forgiveness Application and Makes Critical Clarifications and Documentation Requirements

Wed, 20 May 2020 14:30:00 GMT

There is now improved guidance on calculation methods, definitions of forgivable expenses and the documents that must be submitted with the forgiveness request.

The SBA released its Paycheck Protection Program (PPP) Loan Forgiveness Application and clarified a few critical definitions and documentation requirements in their instructions. The forgiveness application is completed by the small-business borrower and is submitted to their bank or lender whom they received their PPP loan from. The application consists of 11 lines that when calculated results in the amount of forgiveness a small-business owner will be eligible for. The forgiveness component of PPP is what attracted small-business owners to take out PPP loans in droves, as the program promised forgiveness of amounts loaned so long as the small business used the funds for payroll, business mortgage interest, rent and utilities. For a summary on forgiveness rules please refer to my prior article here .

Three-Part Calculation Method

The application consists of a three-part calculation to determine the amount eligible for forgiveness. First, the application asks for the payroll and qualifying non-payroll costs that the business has spent over the eight-week period since it received its PPP funds (more on the updated definition of these costs later). The second step is a reduction in the forgiveness amount if you have reduced pay for employees greater than 25 percent or if you have not brought back the same number of full-time equivalent employees (more on that definition later). The full-time equivalent employee (FTE) rule requires a small business to reduce its forgiveness request if it does not bring back the same number of employees that it had pre-pandemic. The application does provide for a waiver of this reduction if the business failed to bring back its same employee count during its eight-week period but later brought back the same number of employees by June 30, 2020. Its higly recomended you to read information of casino online Luxembourg for those who’s lloking for TOP reviews.

Step three is the 75 percent payroll cost test, which states that the forgiveness request must be comprised of at least 75 percent payroll costs. The other 25 percent can only be rent, mortgage interest debt and utilities. If the forgiveness request in step three exceeds 75 percent, then you will instead take the amount of your payroll costs and will divide that by .75, and this will give you your total forgiveness amount. For example, if you had payroll costs of $70,000 and non-payroll costs $30,000, you would only be at 70 percent and would not meet the 75 percent rule and the $30,000 in non-payroll costs would need to be reduced. The application calculation ($70,000 divided by .75) would bring the total forgiveness amount to $93,333. This calculation is effectively reducing the non-payroll costs from $30,000 to $23,333, and now the forgiveness request consists of 75 percent payroll costs ($70,000) and 25 percent non-payroll costs ($23,333).

Rent Includes Leases of Personal and Real Property

Many small-business owners and their accountants and lawyers were unclear whether the lease of personal property was an amount that could be included in rent, and thus forgiven. The forgiveness application specifically states that rent includes the following: “Business rent or lease payments pursuant to lease agreements for real or personal property in force between February 15, 2020 (business rent or lease payments).”

It was clear that rental payments for office, storefront and other real property was going to be included, but the application now makes it clear that personal property items such as copiers, servers, autos and other common items of personal property that are leased by a business will be includable in the bucket of non-payroll costs that may be forgiven. Similarly, a business “mortgage interest payment” includes loans for real property and personal property, and as a result interest paid on loans for equipment, autos and other personal property items are includable and can be forgiven.

Utilities Definition Includes Internet, Transportation and Telephone

The application also defines what utility expenses may be added to the application. These expenses include “…electricity, gas, water, transportation, telephone or internet access, for which service began before February 15, 2020.”

Most of these utility expenses are straightforward. What falls under transportation is uncertain, but SBA guidance appears to define transportation costs as gas and other auto expenses that would usually be part of the auto deductions on the business-tax return.

Average FTE Calculation

In determining your full-time equivalent employees before the pandemic and during the eight-week period, the SBA has given two alternative methods of calculation. The first method takes some math and seems complex at first, but will give flexibility and will meet the intent of the rule — that those small business who retain or bring back all of their employees during the eight-week period or by June 30, 2020 will not have their forgiveness request reduced.

The first option is to take the average number of hours paid each week for each employee, divide by 40 and round the total to the nearest 10th. The maximum number of hours per employee is 40 or 1 FTE. Let’s run a quick example for a small business with three employees.

Employee 1 Average Weekly Hours = 40

40 hours divided by 40 = 1

1 FTE

Employee 2 Average Weekly Hours = 37

35 hours divided by 40 = .875

Round to nearest tenth = .9

.9 FTE

Employee 3 Average Weekly Hours = 21

20 hours divided by 40 = .525

Round to nearest tenth = .5

.5 FTE

Total FTE = 2.4 FTE

Since the calculation method tracks each employee by the hours they worked, and since it is the same method to use pre-pandemic and during the eight-week period, it will fairly reflect the small businesses payroll costs and the hours worked without having to worry about whether an employee makes the cut as a full-time equivalent or if they are part-time.

The SBA is also allowing for a simpler method that assigns 1.0 for employees who work 40 hours or more per week and .5 for employees who work fewer than 40 hours. While this may work for some small businesses, there can be some losers in this method, as you may have someone who worked working 35 hours who is now only being counted at .5 under the simple method but would be .9 under the traditional method.

Documentation of Payroll Costs

The application outlines what documentation will be required with the forgiveness request. For payroll costs, the business must outline these in a PPP Schedule A Worksheet and must identify each employee paid during the eight-week period. The business must also identify employees paid at an annualized rate below $100,000 in 2019 on one schedule and employees paid at an annualized rate over $100,000 on another schedule. The business owner’s compensation is included on a separate line on the forgiveness application, but still calculates into the application like any employee. Because of the per employee compensation restriction $100,000, no employee or owner can have cash/wage compensation that is forgiven greater than the annualized eight-week amount of $15,385. Consequently, the maximum cash compensation forgiveness request per employee on the Schedule A worksheet will be $15,385. Note that this $15,385 cap does not include health insurance and retirement contributions paid by the business.

The forgiveness application gives flexibility to small businesses who have a bi-weekly payroll, such that they will be able to ensure that they can get four pay periods of two weeks into their eight-week covered period regardless of when they receive their PPP loan funds and when their regular bi-weekly payroll schedule hits. This was an important provision and instruction in the application, as many businesses were realizing that their payroll schedules weren’t in synch with the eight-week period, and as a result of their loan funding date and their regular payroll dates, they were only going to have three pay periods representing six weeks covered.

To document the payroll costs, the SBA is requiring each of the following:

For many small businesses, there will be a significant time lag from when their eight-week period will be up and when a small business will file its quarterly 941s. As a result, many small businesses may have to wait for a month or two after the eight-week period before filing their forgiveness loan application. For example, if your PPP loan was funded on May 15, your 8-week period will run into July and will be part of second quarter (April-June) and third quarter payroll reporting (July-Sept.). This means you won’t have complete 941s to submit to your bank with the forgiveness request until October even though your eight-week period was up in July. We will have to see what flexibility the SBA is going to allow in this instance or if small businesses will just have to wait until October to submit their forgiveness application.

It is unclear what documents a sole proprietor or partnership that does not have payroll and does not file 941s will use.

Documentation of Rent, Mortgage Interest and Utilities

To document the approved non-payroll costs of rent, mortgage interest and utilities, the SBA is requiring existence of the obligation/service prior to February 15, 2020 and evidence of payments during the eight-week period. To document a business mortgage obligation, the business would provide a lender amortization schedule and receipt of payments as well as statements from February 2020 and during the eight-week covered period.

To document rent or lease payments, a copy of the lease agreement must be produced showing it was in force before February 15, 2020. To document the payments, the small-business owner will need to produce copies of account statements from its landlord/lessor showing the payments or cancelled checks evidencing the payments made during the eight-week period. Small businesses who are paying rent monthly will generally be able to request two months worth of expenses during the eight-week period.

The documentation required for utility payments includes an invoice or statements from February 2020 showing the utility service in place. To document payments made during the eight-week period, the business can use account statements showing the payments made, cancelled checks or bank-account statements showing the payment.

Small-businesses owners will submit their forgiveness application and their supporting documentation to their bank, and their bank will have 60 days to approve or reject the forgiveness request. Attention to detail and a correctly completed forgiveness application will be key to ensuring the maximum amount forgivable. Understanding what is in the application now will greatly increase a small business’s chances of receiving maximum PPP loan forgiveness. There are still many unanswered questions, but seeing the PPP forgiveness loan application is a big step ahead.

CREDITS: Mat Sorensen \ Entrepreneur

The post SBA Releases PPP Forgiveness Application and Makes Critical Clarifications and Documentation Requirements appeared first on National Association of Real Estate Brokers .

New pandemic rules make it easier to navigate mortgage closings

Tue, 19 May 2020 13:38:00 GMT

For the past five years Pat Kinsel, CEO of Notarize, chiseled away at getting his remote online notarization (RON) technology used in the housing industry to make the mortgage process faster and easier.

He made sure it met industry standards, including the ability to sell mortgages on the secondary market using RON. What took Kinsel years to build was accelerated in a matter of days by COVID-19. In March, many states issued shelter-in-place orders, which took in-person notary meetings — as well as other important steps in the homebuying process — off the table.

Responding quickly to changes in the country , the Federal Housing Finance Agency (FHFA) put in place loan origination flexibilities which applied to all Fannie Mae and Freddie Mac-backed mortgages.

“We were glad to see the FHFA announced the easing of certain guidelines,” says James Duncan, director of education and engagement at Thrive Mortgage in Texas. “As a lender, we didn’t want to do a fist bump and say ‘woo hoo we’re in the wild west again.’ But loosening those rules will help buyers. ”

The FHFA recently extended these four key flexibilities until June 30:

Remote Online Notarizations (RONs) eliminate in-person meetings

Almost overnight, RONs were given the greenlight to move forward. Once the FHFA allowed remote online notarizations (to assist with loan closings), governors quickly issued executive orders making RONs allowable, in place of the traditional paper and stamp notarization process.

Before COVID-19, RONs were only legal in 23 states. After the pandemic hit, that number rose to 42.

“We’ve seen a huge explosion for RONs in financial services,” Kinsel says. “They offer dramatic cost savings and time savings, not to mention they can dramatically reduce fraud.”

Getting documents notarized the traditional way meant you had to find a notary public, meet them in person, prove your identity, sign the papers and they stamp it. With RONs, all of that is done online.

Now, you upload your documents to your computer or smartphone. You can photograph them, access them through cloud storage or scan them into your device. You prove your identity by taking a photo of your government-issued ID and answering some personal questions.

The third step is to do a video conference with the notary public to live-video sign your documents, using a digital signature (this can be a chosen font or you can upload your signature). The notary agent will confirm your identity and notarize your document. Your notarized document is then immediately available.

For Jim Campagna, the CEO of SnapFi, in San Jose, California, getting documents notarized was the most challenging part of closing a contactless loan because of California’s stringent notary rules.

“We’re the first lender in California to close a mortgage transaction and not have contact with anybody. What’s gotten in the way of that is notarization,” says Campagna. “In California, they have historically not allowed remote notarization. So we had to get creative.”

Campagna’s team was allowed to use a RON outside of California, the notary seal was affixed digitally and a Chicago title company recorded it. It was a lot of hoops to close on a loan remotely, something Campagna hopes will change in the future. Since California issued a state of emergency, regulations on RONs have relaxed a bit, but the future is uncertain once things begin to resume post-pandemic. Simple Wine magazine published the story of two people who met on a dating site and managed to build a serious relationship. вечные ссылки Read more

“We’ve seen a lot of interest in closing transactions this way. It’s not only safer from a health perspective, but it saves people time,” Campagna says. “You used to have to walk into a title company and sit down in front of a one-inch stack of paper. Now, you can close from your home office or wherever.”

Drive-by appraisals reduce costs and save time

Appraisals became a major complication when shelter-in-place orders rolled out as appraisers didn’t want to go into people’s homes and homeowners didn’t want appraisers to enter their property. In the lockdown states, some appraisers weren’t allowed to travel to the property.

In response, the FHFA allowed exterior or drive-by appraisals for rate-term refinances. So, appraisers never have to step foot in someone’s home and borrowers could still go forward with the refinance process.

“The exterior-only appraisal has been around for a long time,” says Bill Lanciloti, Jr., owner of Suburban Appraisal Services in Newton, Massachusetts. “Before it would be used for someone who has a million-dollar mortgage and wants to borrow $100,000 — it’s a no brainer. Drive-bys reduce cost to borrowers and at least the bank has something in their files to keep with guidelines. It was less than 5 percent of our business, now it’s gotten more popular.”

According to FHFA guidelines, purchase transactions require a desktop appraisal. This would consist of an independent licensed appraiser looking at data from MLS listings from their own home office. However, Lanciloti says lenders might ask for additional information such as interior photos.

Companies like Verisite use geocoding technology to confirm the photos were taken inside the residence.

The benefits are that drive-by appraisals typically cost less than full appraisals and they take less time. The homeowner doesn’t need to be present, which can help speed the process.

Drive-by appraisals should be an option some of the time such as in refinances, but are not necessarily good for every transaction, especially if you’re buying an older home, says Lanciloti.

“Before the pandemic I would’ve probably said drive-by appraisals are not such a good idea, but now you can get a lot of information from photos, and there’s information online that’s helpful. If it’s a younger home, the chances that it’s deteriorated are much less. I think drive-bys are fine in some situations,” Lanciloti says.

Construction loans can use desktop appraisals, as well, as long as lenders adhere to loan-to-value (LTV) requirements, including that second homes with LTVs higher than 85 percent get a traditional appraisal.

In some circumstances, homeowners can get appraisal waivers, which you can read more about here .

New technology likely to stick around after pandemic

Many lenders hope that some of the COVID-19 mortgage flexibilities stick around after the health emergency is over. New technology that has made e-closings possible is something that the mortgage industry has been slow to adopt, Duncan says, but with the pandemic lenders are forced to move past the old way of doing things.

“I don’t think the industry is going to go back to the way it was. Any lender that does go back to the old way is doing so at their peril, it’s going to put them at a disadvantage,” Duncan says.

One of the main reasons for this is that tools like RONs, electronic processing and even drive-by appraisals in some instances, speed the process, something borrowers value.

“Prior to COVID-19 our average turn time was 17 days, the average went up slightly to above 17 days,” Duncan says. “There are other lenders in the industry asking us ‘how did you do it?’ They want us to help them set up their own e-closing platform. We’re happy to share the knowledge.”

Learn more:

CREDITS: Natalie Campisi / Bankrate

The post New pandemic rules make it easier to navigate mortgage closings appeared first on National Association of Real Estate Brokers .

Coronavirus (COVID-19): Small Business Guidance & Loan Resources

Fri, 15 May 2020 14:00:00 GMT

Health and government officials are working together to maintain the safety, security, and health of the American people. Small businesses are encouraged to do their part to keep their employees, customers, and themselves healthy.

The post Coronavirus (COVID-19): Small Business Guidance & Loan Resources appeared first on National Association of Real Estate Brokers .

Hud allocates third wave of cares act funding providing $1 billion for communities to bolster coronavirus response and relief efforts

Thu, 14 May 2020 15:58:00 GMT

Third wave of relief funding targeted for states and insular areas.

WASHINGTON – The U.S. Department of Housing and Urban Development Secretary Ben Carson today announced the allocation of a third wave in CARES Act coronavirus relief funding. This wave totaling $1 billion is through the Community Development Block Grant (CDBG) program. To date, HUD has provided over $3 billion in CDBG funding nationwide to help communities acutely combat coronavirus and alleviate economic hardship.

“Coronavirus has impacted our communities and populations in unprecedented ways, and while some begin to see a decline in reported cases, others continue to fight this invisible enemy aggressively,” said Secretary Ben Carson. “This funding will afford states the ability to respond to the unique circumstances they are facing – from reducing risk of transmission to regaining the sound footing of their economy. This is the third wave of funding the Department has provided to States and insular areas, and we will continue to execute a detailed and swift response until the days of COVID-19 are behind us.”

The allocation formula uses variables focusing on public health needs, risk of transmission of coronavirus, rate of coronavirus cases, and economic disruption. The formula uses data on low-income elderly and poor children to target to places with higher public health risk while also using recent unemployment insurance claims data to provide for states hardest hit, at the time of the allocation, by unemployment. All of the factors are adjusted so that places with higher than the national average in COVID-19 cases receive a slightly higher share of funding.

Grantees may select from more than 25 eligible CDBG activities to shape their local programs to meet their needs, including:

Every U.S. State and Insular Area will receive a portion of these relief funds. A list of allocations can be found here .

After President Trump signed the CARES Act into law, HUD acted immediately to allocate its first wave of funding – over $3 billion to assist communities and non-profits – to help protect the homeless and Americans with compromised immune systems, as well as assist Tribal communities in their COVID-19 response efforts. To date, all grant agreement amendments from the first round of funding have been completed by grantees and approved by HUD.

Shortly after the initial $3 billion tranche, HUD announced a second wave of funding to help low-income Americans living in Public Housing . For more information on HUD’s response to the novel coronavirus pandemic and the actions the Department has taken, please visit Hud.gov/coronavirus. Public Housing Authorities across the Nation have jumped into action to help assist their tenants and their communities during this unprecedented time. Read more about their stories featured in HUD’s Neighbors Helping Neighbors campaign, here .

CREDIT: HUD.GOV

The post Hud allocates third wave of cares act funding providing $1 billion for communities to bolster coronavirus response and relief efforts appeared first on National Association of Real Estate Brokers .

Protecting Your Credit during the Coronavirus Outbreak

Thu, 14 May 2020 14:18:00 GMT

Stay informed as you manage your credit health through the Coronavirus outbreak.

As the number of coronavirus cases spreads, it is also having negative impact on the financial health of the economy at large and the economic well-being of individuals across the United States. The unusual nature of this pandemic has resulted in the temporary closing of schools, cancellation of events and the disruption of the distribution of goods and services that may have the unintended consequence of impacting some people’s ability to pay bills on time.

If you are one of these impacted consumers you may be wondering:

These are important questions to consider because your FICO ^® Scores influence the credit available to you as well as the terms, such as interest rates and amount of credit extended. To be clear, medical conditions or diseases are not considered by FICO Scores and will not directly impact a FICO Score. However, the potential financial “fall out” of missing a payment, charging credit cards up to and over their limit or opening several new credit accounts over a short period of time can have a negative impact on the scores.

So, what should you do to help yourself and monitor changes to your FICO ^® Scores if your financial situation has been impacted by coronavirus?

Before bill payments are due, you should contact your bank and other creditors as soon as possible to make them aware of your situation. Your lender will likely have procedures in place to work with customers impacted by this unique health emergency. In fact, several federal and state regulators have already issued guidance to lenders encouraging financial institutions to work constructively with affected consumers, small business owners and communities. Do not forget that all owners of payday loans Washington should definitely go through this procedure as well.

For example, your lenders may work with you to increase your available credit or to set up a deferred payment plan, or temporarily place the loan in forbearance (meaning you may get temporary relief from having to make full payments on your credit obligations). The placement and reporting of an account in forbearance or a deferred payment plan in and of itself does not negatively impact a FICO ^® Score. This holds true with all versions of the FICO Scores.

Keep in mind, your prior history of payments will continue to be considered in the calculation of your FICO ^® Scores. So too will other information that your lender regularly updates on the account, such as current balance and payment status. As such, you may want to also check with your lender on how they intend to report these fields while the account is in forbearance or a deferred payment plan. For example, does your lender plan to report the payment status of your account as ‘current’ (i.e. ‘paid as agreed’) during the forbearance period?

Each lender is likely to have their own unique policies, so if you have loans from different financial institutions, you may want to contact each of them to cover all of your bases.

Given the broad and unprecedented nature of this pandemic, financial service providers may update or revise their policies and practices depending on how the situation evolves. It’s in your best interest to stay informed as you manage your credit health through this coronavirus outbreak.

The post Protecting Your Credit during the Coronavirus Outbreak appeared first on National Association of Real Estate Brokers .

HUD, FHFA, CFPB Join Forces to Assist Homeowners

Wed, 13 May 2020 16:54:00 GMT

The Consumer Financial Protection Bureau (CFPB), the Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD) launched a new mortgage and housing assistance website .

The website was developed to ensure homeowners and renters have the most up-to-date housing assistance information during COVID-19.

The agencies are offering extensive CARES Act assistance and protection for Americans having trouble paying their mortgage or rent during the pandemic.

This website consolidates the CARES Act mortgage relief, protections for renters, resources for additional help, and information on how to avoid COVID-19 related scams. It also provides tools for homeowners to determine if their mortgage is federally backed and for renters to find out if their rental unit is financed by FHA, Fannie Mae, or Freddie Mac.

“During these uncertain times, consumers need reliable, fair, and accurate information on the protections and relief options available to them. This joint website achieves this important goal for homeowners and renters, outlining clearly the changes that policymakers are making to assist them,” said CFPB Director Kathleen L. Kraninger. “The Bureau will continue to do everything we can to protect the economic security of consumers.”

HUD Secretary Dr. Benjamin Carson said, “the invisible” has many Americans concerned about how they are going to stay safe and meet the financial obligations.

“No one should lose their home because of Coronavirus, and this new website is full of resources to help property owners and renters navigate these unprecedented times. HUD is continuing to monitor the needs of our FHA borrowers and HUD-assisted families, and we are prepared to take additional actions as needed,” Carson said.

“Protecting and empowering borrowers and renters while ensuring the mortgage market functions as efficiently as possible has been a priority for FHFA during the national health emergency,” said FHFA Director Mark Calabria. “This joint website is a one-stop shop for information about the housing protections and assistance available from the government during this unprecedented crisis.”

FHA Commissioner Brian Montgomery said this interagency team began working at the “immediate onset” of the COVID-19 outbreak to address the nation’s housing challenges.

“This new resource was part of that effort, and will provide immeasurable value to the nation’s homeowners and renters during this critical time,” Commissioner Montgomery said. “For those in FHA-insured homes or Multifamily rental properties, we are here to tell you that help is available for those that need it. We’re using every available method, like this new website, to get the message out.”

CREDITS: DS News

The post HUD, FHFA, CFPB Join Forces to Assist Homeowners appeared first on National Association of Real Estate Brokers .

Small-business program intended for quick grants is running weeks behind

Wed, 13 May 2020 14:12:00 GMT

Applicants are supposed to receive emergency cash within three days. Many have been waiting weeks.

The post Small-business program intended for quick grants is running weeks behind appeared first on National Association of Real Estate Brokers .

Housing and civil rights coalition demands federal liquidity facility for servicers

Tue, 12 May 2020 17:40:00 GMT

Former MBA chief David Stevens joined the coalition in its letter to federal regulators.

A coalition of housing advocacy groups, national and regional civil rights organizations and minority-focused real estate trade associations, joined by former Mortgage Bankers Association chief executive David Stevens, urged the federal government to create one or more liquidity facilities so that mortgage servicers “covering forborne consumer payments can obtain funding to cover potential shortfalls of advances to bondholders and other parties.”

In a letter to the heads of the federal financial regulatory agencies, Treasury Secretary Steve Mnuchin and Housing and Urban Development Secretary Ben Carson, the coalition noted that while the Coronavirus Aid, Relief, and. Economic Security Act (CARES Act) offered temporary forbearance of mortgage payments for consumers whose finances were impacted by the COVID-19 pandemic, mortgage servicers will face acute liquidity problems in their handling of this unprecedented wave of consumer forbearance.

The coalition also warned that this situation would severely impact low-income households, nonwhite borrowers and veterans because a disproportionately high percentage of their home loans are guaranteed by Ginnie Mae .

“The Urban Institute estimates that the cost of forbearance on owner-occupied mortgages could range from $33 billion to $66 billion over six months,” the coalition wrote. “Without access to liquidity to help cover the contractually obligated advance payments associated with this National Emergency, the lending industry will not be able to consistently advance these payments at the extraordinary rate projected, undermining the existing relief efforts and requiring yet more government intervention.”

The coalition also recommended that any new facility created to address this problem must follow five key criteria:

Among the organizations joining Stevens, who signed the letter in his capacity as CEO of Mountain Lake Consulting , were the Asian American Real Estate Association , Center for Responsible Lending , Consumer Federation of America , NAACP , National Association of Hispanic Real Estate Professionals , National Association of Real Estate Brokers , National Fair Housing Alliance and The Leadership Conference on Civil and Human Rights .

CREDITS: Phil Hall \ HousingWire

The post Housing and civil rights coalition demands federal liquidity facility for servicers appeared first on National Association of Real Estate Brokers .

Pappas among Reps. Introducing Bill to Protect Local Chambers & Other Nonprofits

Fri, 08 May 2020 05:55:00 GMT

WASHINGTON, DC – Representatives Chris Pappas (NH-01), Brian Fitzpatrick (PA-01), Gil Cisneros (CA-39), and Greg Steube (FL-17) introduced bipartisan legislation to ensure local chambers of commerce and other nonprofits who support small businesses can receive the federal assistance they need to weather this economic downturn while they continue working to help America’s Main Street businesses.

Like the businesses they serve, many local chambers, tourism-related organizations, and other 501(c)(6) nonprofits are now experiencing their own financial challenges brought on by COVID-19. These organizations are not currently eligible for the Paycheck Protection Program (PPP) to get financial support. The Local Chamber, Tourism, and 501(c)(6) Protection Act would expand PPP eligibility to include 501(c)(6) organizations with 300 or fewer employees to ensure they can continue supporting our mainstreet businesses and local economies.

“Our local chambers, associations, and non-profits will continue to play an instrumental role in ensuring our Main Street businesses and regional economies can weather this storm,” said Congressman Pappas. “This bipartisan legislation will expand crucial small business assistance to the groups whose mission it is to support them. It is going to take all of us doing our part to get our economy back up and running in a safe and orderly fashion. I look forward to continue working across the aisle to introduce common sense legislation to ensure that happens.”

“Our local chambers of commerce, and other regional and state 501(c)6 organizations, play a vital role in our communities and have been assisting our small businesses as they navigate through the COVID-19 crisis. Unfortunately, these organizations, whose assistance will be crucial to our communities’ local economic recovery efforts in the coming months, were left out of the original CARES Act package. I am proud to continue to lead this bipartisan effort with Congressman Pappas to protect our local economies and create a path to recovery for Main Street America,” said Congressman Fitzpatrick.

“The U.S. Chamber of Commerce is pleased to support the Local Chamber, Tourism, and 501(c)(6) Protection Act,” said Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce. “Local chambers of commerce across the country play a vital role in assisting local businesses weathering the economic storm caused by the coronavirus. Including these organizations in the Paycheck Protection Program ensures they can continue with this important work in the weeks and months ahead. We will continue to work with Representatives Pappas, Fitzpatrick, and other members of Congress to include local chambers in this important program.”

“The PPP eligibility needs to be expanded to destination marketing organizations—no matter how they’re structured—because they will be essential engines of the economic recovery,” said U.S. Travel Association Executive Vice President for Public Affairs and Policy Tori Emerson Barnes. “We thank Congressman Pappas and Congressman Fitzpatrick for having the vision to take on this critical issue, and we urge congressional leaders to enact this bill as quickly as possible.”

“Our local chambers in the 39th District are at the forefront of helping our small businesses weather this storm. However, they’ve also been reeling from the effects of the coronavirus and are in desperate need of relief,” said Congressman Cisneros. “I’m proud to join my Republican and Democratic colleagues in introducing the Local Chamber, Tourism, and 501(c)(6) Protection Act. This bipartisan bill ensures that our chambers and trade groups can access PPP and continue to provide much-needed assistance to our communities.”

“We have a responsibility to ensure that local chambers of commerce and nonprofits are empowered to fill their important role in our small business communities as they have before the COVID-19 pandemic. This bipartisan legislation will help small business owners address their unique problems with local resources and provide a support system that will continue to serve our communities long after this crisis subsides,” said Congressman Steube.

This legislation has been endorsed by the U.S. Chamber of Commerce, the U.S. Travel Association, the American Psychiatric Association, the American Society of Association Executives (ASAE), the National Association of Hispanic Real Estate Professionals (NAHREP), the American Osteopathic Association, the American College of Obstetricians and Gynecologists, The Society of Thoracic Surgeons, the Organization of Social Security Claimants’ Representatives (NOSSCR), the National Leased Housing Association, the National Association of Real Estate Brokers (NAREB), the Independent Insurance Agents & Brokers of America, the American Dental Association, the American Society for Radiation Oncology, and the American Academy of Dermatology Association, National Association of Spine Specialists, SCAI – The Society for Cardiovascular Angiography and Interventions, the Renal Physicians Association, and the American Academy of Pediatric Dentistry.

Last month Congressmen Pappas and Fitzpatrick (PA-01) also led a group of 62 lawmakers in calling on the House leadership to make local chambers of commerce and similar organizations that assist small businesses eligible for direct federal assistance.

CREDITS: The National Herald

The post Pappas among Reps. Introducing Bill to Protect Local Chambers & Other Nonprofits appeared first on National Association of Real Estate Brokers .

After Confusion Over Lump Sum Payments, Homeowners Finally Get Clarification On Mortgage Forbearance

Tue, 05 May 2020 20:01:00 GMT

On Monday morning, Michelle Contri called her lender to inquire about mortgage forbearance after hearing New Jersey Governor Phil Murphy call on lenders to add any suspended monthly obligations to the end of the loan’s life instead of requiring lump sum repayments.

US Bank, though, told her that is not possible, Contri says. So, she tweeted the governor.

Also this morning, the Federal Housing Finance Agency announced that servicers of mortgages backed by Freddie Mac and Fannie Mae should not require lump sum repayments once the forbearance period ends.

“During this national health emergency, no one should be worried about losing their home,” said FHFA Director Mark Calabria. “No lump sum is required at the end of a borrower’s forbearance plan for Enterprise-backed mortgages. … While today’s statement only covers Fannie Mae and Freddie Mac mortgages, I encourage all mortgage lenders to adopt a similar approach.”

Freddie Mac CEO David Brickman and Fannie Mae CEO Hugh Frater released their separate statements reinforcing the message, which comes after several weeks of misinformation and malpractice by some lenders of home loans secured by the two government-sponsored enterprises.

A slew of servicers have only offered three months of forbearance followed by lump sum repayments, prompting borrowers to decry the terms on social media. What lenders have often left out of their communications with customers is that if they continue to experience coronavirus-related hardship they can extend the forbearance period for up to a whole year, but in three- or six-month increments. At the end of each forbearance term, lenders must work with customers to either continue payment suspension or establish a repayment plan.

When I called Contri, who is the president of M-Con Engineering, she had not yet heard of the FHFA announcement. She said she had asked her lender for forbearance but was unsure about the terms of repayment.

Contri says, “If [my lender] is telling me that Freddie Mac said, [forborne amounts cannot be added to the end of the mortgage] and they’re actually saying, ‘yes,’ then I might just call [the bank] back and just tell them that they’re wrong and they need to accommodate as per Freddie Mac’s statement.”

As outlined by the FHFA, some of the repayment options include:

The clarification on lump sum repayments garnered quick praise on social media, a break from the criticism that the mortgage forbearance program, instituted through the CARES Act, has received. Mortgage industry experts have claimed that it strains lenders, who initially had to advance payments to investors as well as cover insurance and property taxes, while borrowers and consumer groups have said it does not go far enough.

According to the latest statistics by financial data firm Black Knight, nearly 3.5 million mortgages are now in forbearance , amounting to about 6.5% of all American home loans.

The clarification that lump sum repayments are only one option for borrowers in forbearance might spur more mortgage holders to seek help, after some had expressed that they would try to keep their monthly obligations rather than cover four months’ worth of mortgage payments at once.

CREDITS: Dima Williams / FORBES

The post After Confusion Over Lump Sum Payments, Homeowners Finally Get Clarification On Mortgage Forbearance appeared first on National Association of Real Estate Brokers .

Could COVID-19 become a driving force of Millennial homeownership?

Wed, 29 Apr 2020 22:45:00 GMT

Uncertain times could spur a desire for the stability of homeownership.

At the beginning of this year, I decided to store my belongings and live without a home base for a season, living out my dream of being a true digital nomad and exploring the way people live across the U.S. Since I traveled constantly for work, it wasn’t a huge lifestyle shift for me (other than getting to shock people at conferences by explaining I really did live out of my suitcase).

With the exception of a few people who seemed to be genuinely concerned I was living on the street, most were intrigued by the experiment. I stayed in Airbnb s, and I had a few regular routines to create my home wherever I went. My primary goal of the adventure (other than for the sake of the adventure itself) was to gain some unique insight into the way we live across America.

In late March, I was about to publish some of my insights on emerging trends about the concept of home and community when Los Angeles, my “home base” city, went into lockdown. In the wake of the pandemic, these trends, along with my nomadic lifestyle, came to a screeching halt.

While the housing market may only suffer as long as the pandemic slows transactions, consumers’ concept of home will likely shift dramatically for the long haul. In this article, I will share a few of the community lifestyle trends that were prevalent at the beginning of 2020 and the contrasting direction that may close out the year.

Mobility to Stability

“The dream of having mobility is one of the biggest barriers to homeownership,” said Nuria Rivera, owner of Novation Title . In a 2019 video about Millennial homeownership by Cultural Outreach , Nuria explained that many Millennials were not ready to settle into a particular community.

“We want to be mobile and have the ability to work remotely anywhere in the world,” she said.

Thanks to an entire industry of support services such as home sharing apps like Airbnb, communication tools like Slack, and co-working spaces like WeWork , living a remote lifestyle has become fairly accessible. One study found that 27% of U.S. workers said they “might become digital nomads,” and whether or not they would all make that shift, it shows a significant level of interest.

In a time of crisis, on the other hand, people want the opposite of the uncertainty of a nomadic lifestyle. The first principle of the Trauma-Informed Care model, which I have outlined in several previous articles and is commonly applied as a therapeutic model in crisis settings, is Safety.

Following a major crisis, people need to feel safe and secure, and they want to have a sense of control in their lives.

Many homebuyers today and in the months following may be influenced by the stability of homeownership and the comfort of owning a safe space in the chaos. The pandemic, while causing many other economic problems, may increase the desire for homeownership among Millennials, as they search for stability.

Community Living to a Space of Your Own

When my conference schedule began to slow, I had plans of moving into a co-living space, in which residents share common living spaces and upkeep. More co-living spaces have been popping up as a means of providing a short-term lease and/or a built-in community.

These spaces are usually designed for a specific type of resident such as the young professional, single mother, young family, and the list goes on. For Millennials, especially, who are postponing marriage and family more than previous generations, this living option provides a built-in community without a long-term commitment.

Trends in hospitality share similar responses to these demands for greater connection, such as the hotel chains, Freehand and CitizenM, who offer smaller rooms with shared bathrooms in exchange for affordability and an emphasis on community space.

Jordan LaRue, associate at Gensler, the architecture firm designing the upcoming CitizenM in Los Angeles, said their model appeals to a generation who values amenities and community access over space.

“There are a lot of hotel trends aiming to appeal to Millennials and affordability to compete with home-sharing apps like Airbnb where certain brands have much smaller, but trendy, rooms and focus more on the amenities and community space, like citizens,” LaRue said.

Similarly, LaRue described housing trends for an increased demand for less space in exchange for more community.

“With less Millennials having families and a lack of affordable housing, live/work spaces are more appealing and provide amenities and social interaction at a more affordable price,” LaRue said.

As people spent less time inside their homes and more time at work, commuting, or involved in community activities, their living space took a backseat in their priorities.

“Many Millennials want to own,” she said, “but don’t necessarily need multiple bedrooms and a yard if they don’t have a big family.”

During COVID-19, however, people have spent a huge amount of time in their personal living spaces. At the Mortgage2020 virtual conference last week, Jen Du Plessis, a leading business coach in real estate and lending, said she expected to see a big influx in move-up homes. She described one homeowner’s experience who stated their home was not as practical when their whole family is living in it all the time.

“There’s going to be a lot of pent up demand for people who are wanting to move and upgrade,” Du Plessis explained. “And because rates are so low, the buying power is really great right now for them to be able to buy something bigger and have a similar payment.”

And while co-living spaces seemed like a convenient option for someone like myself, who may want to stay temporarily in a city and have the immediate connections of the like-minded community, it is far from convenient during a pandemic. I spoke with a manager of one of the co-living spaces in Los Angeles who said he was very uncertain about what was going to happen to their space after the pandemic. Half of their residents had left, two of them contracted COVID-19, and one passed away. I certainly will not be pursuing a co-living option anytime soon.

Connection Transformed

Trends in housing have reflected a desire for a stronger sense of community and connection, but the pandemic will have a lasting impact on how we approach building community for months and probably years to come.

Research following other pandemics shows an increase in avoidant behavior and social isolation for many months following the resolution. One study of Hong Kong residents following the H1N1 outbreak reported a high prevalence of avoidant behaviors, including 63% of respondents avoiding going out in public places. Those with an increased distrust in local health systems demonstrated a higher likelihood of staying in their homes.

The existential need for relatedness, as defined by the famous social psychologist, Erich Fromm, has become increasingly apparent in housing trends over the last decade. However, the pandemic will require a shift in the way we meet this need.

Prior to social distancing, loneliness levels were reported at an all-time high. In a 2018 survey of 20,000 U.S. adults, half reported feeling alone and 40% stated they felt isolated. I can imagine that those numbers have significantly increased in recent weeks and will continue far beyond the re-opening of the economy.

Technology may, in part, become the transformative solution to our temporary predicament, as people have become more intentional about using video conferencing and virtual experiences. In Bowling Alone , which was written exactly two decades ago, the author wrote about how the rise of technology had progressed to the point of extreme isolation and the erosion of social capital needed for a strong society. And yet, today, technology may become the lifeline in our isolated communities.

Leadership through Housing

How we live will forever be transformed by the pandemic, and the housing industry plays a critical role in response. We will likely see an increase in desire for stability through homeownership, possibly a desire for more space and upgrades as people continue to find a safe haven in their homes, and we must continue to find ways to meet our communities’ needs for social connection.

Last week, my company, Cultural Outreach, ran a survey of 1,000 recent homebuyers, in which we found that 74% of respondents said they were more stressed about their finances as a result of COVID-19. However, we know that housing decisions, unlike any other investments, are made with a great deal of emotion.

As long as the buying power is available, these emotions will likely drive buyers toward homeownership rather than away from it.

CREDITS: Kristin Messerli / HousingWire

The post Could COVID-19 become a driving force of Millennial homeownership? appeared first on National Association of Real Estate Brokers .

Who’s getting the $1,200 COVID-19 checks first?

Fri, 17 Apr 2020 08:13:00 GMT

The IRS says it has started distributing emergency aid payments, the $1,200 per person that’s part of the federal government’s effort to take some economic pressure off individuals in this pandemic.

But not everyone is getting paid at the same time.

Marketplace’s Kimberly Adams has the latest update on where the payments stand.

“According to the IRS, people who filed taxes in the past two years and who used direct deposit for their refunds will be the first to get the payments,” Adams told “Marketplace Morning Report” host David Brancaccio.

The following is an edited transcript of their conversation.

Kimberly Adams: The $1,200 per person applies to people who are U.S. citizens or residents and make less than $99,000 a year, for individuals.

David Brancaccio: And what does the timeline look like for people who don’t have direct deposit or are on social security and didn’t file taxes in the past couple years?

Adams: People who never gave the IRS their bank information may have to wait weeks, if not months to get their payments. And people who didn’t file at all in 2018 or 2019 will have to wait as well. The IRS is letting non-filers register online so they can get their payments. The agency expected to have a similar tool up online later this week for people who filed taxes but never shared their bank information.

Brancaccio: There’s a published report out that a certain group of people who have filed in the past may still face some additional delays?

Adams: The Financial Times is reporting that some taxpayers who used so-called “refund transfer” services may face additional delays. Those services allow people to use their refunds to pay for preparation and filing services, but it means their refund goes through a third party before it gets to them. Some consumer advocates are warning this will cause additional delays for low-income filers.

Brancaccio: How can people find out which batch they will be in to receive funds?

Adams: Right now, you can’t. Again, most people who already gave their bank information to the government, even for social security benefits, shouldn’t have to do anything extra. Just wait. The IRS is working on another tool to track the payments, which is supposed to be ready later this week.

The post Who’s getting the $1,200 COVID-19 checks first? appeared first on National Association of Real Estate Brokers .

The Fate of the American Middle Class is in the Hands of Regulators

Sat, 11 Apr 2020 19:11:00 GMT

Last week, Congress passed phase three of its COVID-19 response, the CARES ACT, a $2 trillion stimulus package that has become most well-known for its direct payments of up to $1,200 for many Americans. These payments are a much-appreciated addition to the already enacted policies like the delayed tax deadline, deferred interest on student loan payments, updated paid sick leave policies, and other actions taken to ease the impact the pandemic is causing.

One of the policies that the media has largely neglected to cover is the impact of widespread forbearance – the term for when a mortgage servicer allows homeowners to temporarily pay at a lower rate or pause payments. During the current crisis, forbearance will serve as a significant relief for many middle and low-income families. The typical mortgage can add up to nearly 30 percent of the average American family’s income, and with many individuals temporarily out of work and impacted by COVID-19, forbearance allows those funds to be reallocated to immediate life-sustaining expenses like meals and medications.

Home ownership has long been a quintessential element of the American Dream. It is more than a place to live. It is a tangible path to the middle class – and arguably the greatest investment an individual can make. Furthermore, expanding access to home ownership is key to closing the gap between socioeconomic classes, providing new economic opportunities for families, and laying the foundation for success for aspiring homeowners.

However, an often unknown part of forbearance is that although homeowners around the country are receiving much needed relief, lenders and servicers are still obligated to pay principal, interest, taxes, and insurance, on the homeowner’s behalf. Given the nature of their business, this is potentially fatal for non-bank lenders.

Non-depository mortgage servicers have limited liquidity access. And depending on the duration of the crisis at hand, non-bank servicers will not have the liquidity to advance mortgage payments at the high rate that will be necessary. This presents a challenge, considering more than half of all mortgages in recent years came from non-depository lending institutions—including larger parts of loans made to low-income families. If a solution for non-bank mortgage lenders is not found, we could backtrack on nearly a decade of housing gains and relief efforts, and require further government intervention to prevent a mortgage crisis that could mirror the events of 2008.

Now that the CARES ACT has been signed into law, it is important that regulators take the opportunity to clarify forbearance policy to not only provide needed economic relief to impacted homeowners, but also lay out guidelines for mortgage lenders to navigate this unprecedented challenge.

Unfortunately, policymakers failed to provide lenders and servicers with access to the necessary liquidity in the CARES ACT and puts the issue in the hands of regulators. Hours after Congress’ omission of liquidity to non-depository servicers, Ginnie Mae announced plans to provide liquidity in the market for servicers within the next two weeks. While this is a step in the right direction, regulators must provide additional guidance to protect lower-income Americans and allow servicers to prepare for the coming months.

Servicers open the door for homeownership for many American families. These institutions play a key role in market diversification and provide new opportunities for a diverse group of borrowers. It is essential that regulators and Congress work to ensure that non-bank lenders and servicers receive the necessary protections and have access to needed liquidity, allowing them to continue the important role they play in helping families realize the dream of homeownership.

Vincent J. Barnes, Senior Advisor
GrayGlobal Advisors, LLC
300 New Jersey Avenue, NW
Washington, DC

vbarnes@grayglobaladvisors.com
202-461-2100 Office
202-531-6005 Cell

The post The Fate of the American Middle Class is in the Hands of Regulators appeared first on National Association of Real Estate Brokers .

Coronavirus prompts government to loosen rules on tapping retirement savings

Fri, 10 Apr 2020 12:44:00 GMT

The CARES Act, the legislation just signed into law by President Donald Trump, contains plenty of provisions for those saving for and living in retirement. But experts say those who can take advantage of the new law have lots to consider.

The law temporarily loosens the rules on hardship distributions from retirement accounts, giving people affected by the crisis access of up to $100,000 of their retirement savings without the usual 10% penalty.

The law also doubles the amount 401(k) participants can take in loans from an account for the next six months to the lower of $100,000 or 100% of the account balance. IRAs don’t permit loans.

The new rules apply to a whole range of people, including those who have lost a job because of the pandemic, those suffering from COVID-19 or who have a spouse with the virus.

If your emergency savings fund is running low, it may make sense for you to use your 401(k) to ride out the COVID-19 pandemic, says Keith Whitcomb, the director of analytics at Perspective Partners. “The CARES Act is designed to enhance this financial alternative,” he says.

Is the money worth the disruption?

While the new law provides more options for people who are struggling financially, think carefully before acting.

Having to sell investments at a much lower price in the COVID-19-induced stock market sell-off can knock your 401(k) out as a potential source of funds, says Whitcomb. “This is true regardless of whether you borrow or take a hardship withdrawal from your account,” he says. “However, if your 401(k) has assets in cash or short-term bonds that have not been affected by the market decline, it may make sense to sell those investments in order to generate cash.”

Also, disrupting the accumulation of 401(k) assets with loans and hardship withdrawals is generally discouraged. “However, if a 401(k) withdrawal enables you to lower your current payments, refinance at a lower interest rate, or eliminate debt, the net result can strengthen your financial circumstances while simultaneously helping you pay your bills,” says Whitcomb.

Whitcomb also notes that the COVID-19 crisis has destabilized the job market as businesses close to stop the spread of the potentially deadly virus. “This can factor into your decision because if you leave or lose your job when you have a 401(k) loan, it must be paid in full by that year’s tax return deadline,” he says. “With some exceptions, you would normally pay income tax and a 10% penalty on any outstanding balance. However, the CARES Act eliminates the penalty, making the amount subject only to income tax.”

Remember, says Whitcomb, even with the help of the CARES Act, hardship withdrawals from your 401(k) will still be considered as ordinary income for tax purposes. “But if you are backfilling lost wages from a layoff, your tax bill may end up being about the same as a ‘normal’ year,” he says.

Others also note that waiving the 10% early withdrawal penalty will be helpful to many retirement account owners. “It’s welcome to people who have no other resources but to touch retirement to provide the temporary financial relief,” says Rose Swanger, a certified financial planner with Advice Finance. “As old sayings goes, bills do not stop coming just because one is sick or out of job.”

Here’s one tactic to consider if you intend to take a distribution. Sell the fixed income portion of your portfolio. That way you leave your stocks “intact to participate in the recovery when it happens,” says Charles Sachs, a certified financial planner with Kaufman Rossin Wealth.

Waiver of 2020 RMDs

For retirees and owners of inherited IRAs, the law suspends for 2020 the required minimum distributions (RMDs) the government requires most people to take from tax-deferred 401(k)s and individual retirement accounts (IRAs) starting at either age 70½ or age 72.

And this can be helpful to many retirement account owners. Why? An RMD is calculated for each account by dividing the prior Dec. 31 balance of that IRA or retirement plan account by a life expectancy factor. “Had we used that to calculate the RMD, every retiree will have a higher inflated amount than what they see now on paper,” says Swanger. “By skipping one year, it helps retirees recuperate investment as well as minimize the tax impact.”

For his part, Alex Offerman, a certified financial planner with Model Wealth, says the waiving of RMDs gives account owners a “free year” of tax planning. “This free year gives them room to complete Roth IRA conversions that otherwise may not be prudent for them to complete,” he says. “Especially coupled with the lower tax rates from the Tax Cuts and Jobs Act of 2018.”

Others agree. “The elimination of RMD’s makes Roth conversions even more appealing for some folks,” says Rob Greenman, a certified financial planner with Vista Capital Partners. “Folks who had planned on having a certain amount of their adjusted gross income coming from an RMD just found themselves some additional wiggle room in certain brackets to do some additional Roth conversion amount.”

A Roth IRA conversion is the tactic of distributing some or all of your funds from a traditional IRA into a Roth IRA. The distribution is taxed as ordinary income.

CREDITS: Robert Powell / USA TODAY

The post Coronavirus prompts government to loosen rules on tapping retirement savings appeared first on National Association of Real Estate Brokers .

Zoom security bug lets attackers steal Windows passwords

Thu, 09 Apr 2020 18:08:00 GMT

Zoom , the videoconferencing software that’s skyrocketed in popularity as much of the globe sits at home due to the coronavirus outbreak , is quickly turning into a privacy and security nightmare.

BleepingComputer reports about a newly found vulnerability in Zoom that allows an attacker to steal Windows login credentials from other users. The problem lies with the way Zoom’s chat handles links, as it converts Windows networking UNC (Universal Naming Convention) paths into clickable links. If a user clicks on such a link, Windows will leak the user’s Windows login name and password.

The good thing is that the password is hashed; but the bad thing is that it is in many cases simple to reveal it using password recovery tools such as Hashcat.

The vulnerability was first found by security researcher @_g0dmode and verified by security researcher Matthew Hickey . Additionally, Hickey told the news outlet that this vulnerability can be used to launch programs on a victim’s computer when they click on a link, though Windows will (by default) at least give a security warning before launching the program.

As far as security vulnerabilities go, this one is pretty bad, as it doesn’t require a lot of knowledge to exploit. It does require the victim to actually click on a link, and it can be mitigated by tinkering with Windows’ security settings, but it’s definitely something Zoom should fix by changing the way the platform’s chat handles UNC links.

In the meantime, for a quick fix, go to Computer Configuration -> Windows Settings -> Security Settings -> Local Policies -> Security Options -> Network security: Restrict NTLM: Outgoing NTLM traffic to remote servers and set to “Deny all”.

Mashable has contacted Zoom for comment on this story, and we’ll update it when we hear back.

This is not the only privacy/security-related issue that has been unearthed at Zoom in the past couple of weeks. Just yesterday, The Intercept reported that Zoom doesn’t actually use an end-to-end encrypted connection for its calls, despite claiming to do so. There’s also the issue of leaking users’ emails and photos to unrelated parties, and the fact that the company’s iOS app, until recently, sent data to Facebook for no good reason.

Zoom software also has a couple of worrying privacy features, and although this isn’t Zoom’s fault, it’s worth noting that hackers are using the app’s newfound popularity to trick users into downloading malware.

CREDITS: STAN SCHROEDER | Mashable

The post Zoom security bug lets attackers steal Windows passwords appeared first on National Association of Real Estate Brokers .

Homeowners hurt by COVID-19 can delay mortgage payments, but some say they’re anxious and confused about the real cost

Thu, 09 Apr 2020 14:03:00 GMT

Americans struggling to pay their mortgages because they’ve lost a job or income during the coronavirus pandemic can put off that bill for up to a year due to the CARES Act. But while the measures should be creating a feeling of relief, many borrowers have been left anxious because of confusing messages from the government and banks.

Some homeowners say Wells Fargo, Bank of America and Chase have told them they have to repay those postponed payments – known as forbearance – in a lump sum once three months are up. It’s an unexpected demand they fear could put them deeper in debt as millions are laid off and watching their retirement savings plunge with the stock market.

Anthony Adams is one of the uneasy Americans who is confused and worried about the rules. He is late on his mortgage payment to Wells Fargo after the coronavirus pandemic crimped sales at his family’s bakery in Orlando, Florida, forcing him out of a job.

Wells Fargo offered Adams a 90-day deferment on his mortgage, which is backed by the U.S. Department of Veterans Affairs, but the 49-year-old was surprised when Wells Fargo told him he’d still owe three months’ worth of payments – plus the current month – once that forbearance period was up. Adams declines to say what his payments are.

“I feel like I’m in this odd Catch-22,” Adams says. “I can get some immediate relief from postponing a mortgage payment, but the cost of that relief will put me further into debt.”

Why the surprise? It’s a combination of evolving, sometimes conflicting rules depending on who owns the mortgage and many borrowers not understanding those rules.

Experts are concerned about how this will play out for borrowers over the coming months, even after the recently enacted relief package from Congress, called the CARES Act, which allows many people to delay their mortgage payments for up to a year.

“The problem with the CARES Act is that it doesn’t make clear how borrowers pay back the money during a forbearance period,” says Shamus Roller, executive director at National Housing Law Project, a nonprofit legal advocacy center.

“There’s a chance that something could go wrong in that process,” he says, “and it requires a lot of interacting with servicers that are overburdened with calls.”

Wells Fargo, Bank of America and Chase consistently allow borrowers of mortgages that they own to tack suspended payments on the back end of the loan. If the bank doesn’t own the mortgage and acts as a servicer, collecting principal, interest and escrow payments for a loan backed by Fannie Mae, Freddie Mac, the Federal Housing Administration or the Department of Veterans Affairs, all the payments are due after 90 days, borrowers have been told.

Adams says he doesn’t know what programs Wells Fargo will offer by the time he reaches day 91, and that makes him anxious because he fears slipping into foreclosure at that point.

“Consumers are confused as we try to figure out our relief options,” Adams says. “We’re hearing from the president’s office and other officials that there are forbearance and relief options, but that’s actually only specific to certain mortgages.”

Know who backs your mortgage

A mortgage can be owned by a bank, or a bank can service a loan backed by government-sponsored enterprises such as Fannie Mae, Freddie Mac or agencies such as the FHA, which were set up by the government to support and finance the housing market.

These entities backing the home loans each have their own rules, experts say, which confuses banks and borrowers. That means anyone with a government-backed loan could be asked to make a so-called balloon payment after 90 days, or they could be offered other options once those three months are up.

The Federal Housing Finance Agency dictates guidelines for Fannie Mae and Freddie Mac-backed loans. After 90 days, FHFA advises borrowers to work with their lenders to set up a plan to either pay back all of the missed payments at once, tack those payments at the end of the loan or modify monthly mortgage payments.

The Department of Housing and Urban Development oversees the FHA, while the Department of Veterans Affairs dictates guidance on VA-backed loans. Those agencies are working on what should happen once a 90-day suspension of mortgage payments is up.

The FHA provides a variety of options to lenders that they may offer to borrowers with FHA-insured mortgages. That way, borrowers can avoid foreclosure and having to make a lump sum payment on day 91, according to HUD.

“We are working now to implement the specific forbearance provisions of the CARES ACT so lenders will also be able to offer this option to FHA-insured borrowers impacted by the COVID-19 national emergency,” HUD said in an email to USA TODAY.

The CARES Act, which passed last month, gives homeowners with federally backed loans two types of relief. First, it prevents lenders from beginning foreclosure proceedings on federally backed loans for at least 60 days after March 18.

Second, homeowners who experienced financial hardship from the pandemic can request a forbearance for up to 180 days, which may be extended for an additional period of up to 180 days if borrowers are still under financial duress.

If you don’t have a federally backed mortgage, some loan servicers may have forbearance or deferment options for non-government-backed or private loans.

For loans that Wells Fargo services, it follows guidance from FHFA, HUD and the VA. At the end of an initial 90-day payment suspension, the bank said, it has options available for customers on a case-by-case basis that could include a continuation of a payment suspension, a loan modification or the addition of suspended payments to the back end of a loan.

Bank of America and Chase have similar policies.

“Struggling borrowers should reach out to their servicers to see what options are available to them,” Kathy Kraninger, director of the Consumer Financial Protection Bureau, told USA TODAY in an email. “If a consumer has an issue with their servicer, we encourage them to submit a complaint to us.”

Debrena Jackson-Gandy, 53, doesn’t know whether her loan is owned by her bank or serviced by it. She is the owner of Masterminds, a personal development company in Seattle. The business events she had planned for the next three months were canceled, hurting her company’s revenue and leaving her struggling to pay her mortgage, she said. Her husband has also lost income.

When she looked up relief options on the Bank of America website, she thought that she could add deferred payments to the end of her loan. But the bank told her she’d have to pay in a lump sum after 90 days when she called them.

“It was really shocking,” Jackson-Gandy says.

Contact your servicer

If you can pay your mortgage, experts advise continuing to do so. But if you are experiencing financial hardship because of coronavirus, call your servicer immediately and ask them what forbearance or other relief options are available.

“Communication is vital,” says David Dworkin, president and CEO of National Housing Conference, a nonprofit affordable housing advocacy group. “You need to call your servicer and ask for help, and then you need to stay in touch with your servicer as your situation changes.”

To receive forbearance through the CARES Act, you must contact your loan servicer. There won’t be any additional fees, penalties or interest added to your account through this deferment, but regular interest will still accrue, Kraninger says.

Be prepared to remain on the phone for a while. Loan servicers, who are receiving many calls, have likely been affected by the pandemic and could be facing staffing issues.

Ask when suspended payments are due

Forbearance allows you to pause or reduce your mortgage payments, but you still have to repay those missed payments in the future. Pay close attention to when your servicer expects you to pay them back, experts caution.

“Be sure to ask how that money needs to be paid back once forbearance ends,” Roller says. “If your mortgage is federally backed and you have economic circumstances that have been harmed by the coronavirus, you have a right to a forbearance. But there’s going to be differences in the types of options people receive depending on what servicers they have.”

Loan modification is an option

Experts say that a borrower can seek a loan modification if they’re still under financial duress after 90 days.

“Call the servicer, and they will work with you to continue your forbearance plan in either three- or six-month intervals incrementally for up to a year,” says Raphael Williams, press secretary and senior communications adviser at the Federal Housing Finance Agency.

The agency controls Fannie Mae- and Freddie Mac-backed loans, which represent about 44% of mortgages in the U.S., according to Williams.

The FHFA, which aims to be the standard-bearers for the mortgage market, anticipates that about 90% of mortgages will be covered under some forbearance option, even if it’s not formally provided by Fannie Mae, Freddie Mac or other government entities, Williams says.

Document everything in writing

If you secure forbearance or another relief option, ask your servicer to provide written documentation that confirms the details and terms of your agreement. Make sure you’re familiar with the final terms.

One option is to send a letter explaining your situation in lieu of your mortgage payment if you can’t pay, experts suggest. Then keep written records with photocopies. Also, follow up any phone conversation with a letter to your bank that includes the name of the agent who helped you, the number you dialed, any confirmation number used, the time you called and what the representative said.

“Don’t bet your house on the ability of phone operators to accurately document every single thing that was discussed during a call,” Dworkin says. “Help yourself by keeping a written record.”

CREDITS: Jessica Menton | USA TODAY

The post Homeowners hurt by COVID-19 can delay mortgage payments, but some say they’re anxious and confused about the real cost appeared first on National Association of Real Estate Brokers .

With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds

Tue, 31 Mar 2020 22:48:00 GMT

The post With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds appeared first on National Association of Real Estate Brokers .

Here’s how to get a small business loan under the $349 billion coronavirus aid bill

Tue, 31 Mar 2020 21:37:00 GMT

The post Here’s how to get a small business loan under the $349 billion coronavirus aid bill appeared first on National Association of Real Estate Brokers .

Housing Resources

Thu, 26 Mar 2020 21:55:00 GMT

We have compiled the following list of housing-related information and resources related to the COVID-19 pandemic. If you have any additional information or resources, please contact us at antoine.thompson@nareb.com

GOVERNMENT RESOURCES

EVICTION & MORTGAGE RELIEF

HARVARD RESOURCES

ADDITIONAL RESOURCES

NEWS

CREDITS: Joint Center For Housing Studies | Harvard University

Permainan casino yang dimiliki oleh situs royal99bet sudah banyak dikenal oleh masyarakat luas di indonesia. Website tersebut memiliki permainan yang lengkap dengan berkerjasama dengan situs-situs ternama. Mungkin jika kalian ingin menjadi salah satu member yang mendapatkan fasilitas istimewa, maka kalian bisa klik link berikut ini https://royal99site.com/ untuk terhubung langsung ke agen atau website mereka. Keuntungan dan kemudahan yang besar bisa kalian dapatkan dengan bergabung di agen royal99site.com di indonesia.

The post Housing Resources appeared first on National Association of Real Estate Brokers .

Federal Agencies Encourage Banks, Savings Associations and Credit Unions to Offer Responsible Small-Dollar Loans to Consumers and Small Businesses Affected by COVID-19

Thu, 26 Mar 2020 20:54:00 GMT

Five federal financial regulatory agencies today issued a joint statement encouraging banks, savings associations and credit unions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19.

The statement of the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency recognizes that responsible small-dollar loans can play an important role in meeting customers’ credit needs because of temporary cash-flow imbalances, unexpected expenses, or income disruptions during periods of economic stress or disaster recoveries. Such loans can be offered through a variety of structures including open-end lines of credit, closed-end installment loans, or appropriately structured single payment loans.

The agencies state that loans should be offered in a manner that provides fair treatment of consumers, complies with applicable laws and regulations, and is consistent with safe and sound practices.

For borrowers who experience unexpected circumstances and cannot repay a loan as structured, banks, savings associations and credit unions are further encouraged to consider workout strategies designed to help borrowers to repay the principal of the loan while mitigating the need to re-borrow.

This statement follows other actions taken by the agencies to encourage financial institutions to meet the financial services needs of their customers and members who have been affected by COVID-19. For example, the federal banking agencies issued a joint statement on March 19 informing institutions that the agencies will favorably consider retail banking and lending activities that meet the needs of affected low- and moderate-income individuals, small businesses, and small farms for Community Reinvestment Act purposes, that are consistent with safe and sound banking practices and applicable laws, including consumer protection laws.

In addition to today’s statement, the agencies are working on future guidance and lending principles for responsible small-dollar loans to facilitate the ability of banks, credit unions, and saving associations to more effectively meet the ongoing credit needs of their customers, members, and communities.

CREDITS: Office of the Comptroller of the Currency

The post Federal Agencies Encourage Banks, Savings Associations and Credit Unions to Offer Responsible Small-Dollar Loans to Consumers and Small Businesses Affected by COVID-19 appeared first on National Association of Real Estate Brokers .

Corona Cash Cometh

Thu, 26 Mar 2020 17:01:00 GMT

Big Businesses and Average Joes are lining up for corona cash. But who’ll get what?

This week, Subway and Mattress Firm announced plans to stop paying rent in the coming months due to corona-closures.

Millions of workers who recently lost their restaurant and retail jobs would ALSO love to cancel their rent… but they’re even less likely to get away with it.

It’s clear that businesses and employees are hurting. In this uncertain time, they’re turning to the same place for relief: Uncle Sam’s checkbook.

And yesterday, the Senate approved a $2T stimulus bill

In total, the new stimulus package is more than twice as much as Congress coughed up after the 2008 financial crisis.

Here’s how the corona-cash is expected to be divvied up :

1. Individuals and families will get $301B in direct assistance:

2. ~$350B in loans are earmarked for small businesses :

3. Unemployed workers will get $250B in benefits:

4. ~ $500B in loans and other aid will be set aside for corporations, states, and local governments :

State and local governments will get $150B. When news of the deal broke yesterday, the Dow Jones rose more than 11%.

But critics still worry it’s not enough

Some critics told The New York Times that the government should be prepared to lend up to 5x more than this bill’s $2T to prevent further closures and layoffs.

The House is expected to vote on the measure on Friday.

CREDITS:

The post Corona Cash Cometh appeared first on National Association of Real Estate Brokers .

Coronavirus Epidemic: Cause for Concern in Real Estate?

Thu, 26 Mar 2020 10:52:00 GMT

A coronavirus named COVID-19, a flu-like virus, is sweeping the globe, already infecting over 90,000 people since it was first identified in late 2019, after originating from the Chinese city of Wuhan. While there is still uncertainty revolving around how quickly the virus spreads, what the true mortality rate is and who is most at risk, experts agree that everyone should take normal precautions to stay healthy.

The health impact is not the only concern, however. How could COVID-19 impact residential real estate? As the virus spreads to the U.S., with 106 cases confirmed [at press time], according to the Wall Street Journal , concerns mount.

“There are many potential scenarios,” says Dan Forsman, president and CEO of Berkshire Hathaway HomeServices Georgia Properties. “Right now, we see fear and panic impacting the stock market. Our 24-hour, always-on news is fueling it with sensationalized stories. This is likely to start impacting real estate sales as we move toward the spring market. Understanding and communicating the real facts will be critically important in the short term. We and other real estate businesses must have a plan to react to the different scenarios that may come our way and help our associates take advantage of the opportunities.”

Here’s an in-depth look:

Stock Market

Changes in the stock market are often indicators of future fluctuations in several industries, real estate included. Following the worst week for the Dow Jones Industrial Average since 2008, the market index recorded its largest one-day percentage gain in almost 11 years on Monday, according to MarketWatch .

“The markets right now are in flux, as shown by everything happening with the stock markets,” says Tipper Williams , operating principal of Keller Williams Virginia Realty Alliance Group. Working in both the D.C. area and in Richmond, Va., she has not yet seen a direct impact on her markets.

News from the Federal Reserve, which made a sudden decision to cut interest rates by half a point on Tuesday to a range of 1 percent to 1.25 percent, helped stocks rebound—it was the largest drop since the financial crisis in hopes to offset the economic uncertainty caused by the coronavirus. Despite the cut, however, markets remain volatile.

“The coronavirus poses evolving risks to economic activity,” the Fed said in a statement. “In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate.”

“The coronavirus has quickly upended global economic expansion and introduced the significant uncertainty of a possible recession. Today’s interest rate cut is therefore an appropriate response to changing events,” said Lawrence Yun , chief economist and senior vice president of Research for the National Association of REALTORS®, in a statement.

Interest Rates

“The real estate sector will hold up very well because of the rate cut,” said Yun in the statement.

While not a direct correlation, changes to the federal fund rate do often influence long-term mortgage interest rates, as they move with long-term Treasury yields. As a result, experts expect to see lower mortgage rates—the 30-year fixed rate is currently hovering around 3.50 percent.

“On the domestic front, the super low interest rates will boost housing demand,” Yun tells RISMedia. “There is likely to be some disruptions to home building supply from the global supply chain production. So one inevitable is higher home prices.”

In addition to rising home prices, experts say there could be increased interest in the refinance sector, as well as increased activity from buyers hoping to take advantage of lower mortgage rates.

Several brokerages are monitoring the situation closely. Jason Abrams, vice president of Industry at Keller Williams, is keeping a watchful eye on rates. Right now, he says, lower mortgage rates are a positive for the industry.

“We currently have historically low interest rates and low inventory in many markets. And, it’s all part of the perfect equation for consumers to work with real estate agents on how to navigate the market in changing times and get the best deal,” says Abrams. “This moment is an opportunity for agents to provide value and when the top agents will shine for their clients.”

There’s a limit, however. Joel Kan, associate vice president of Economic and Industry Forecasting for the Mortgage Bankers Association (MBA), says the market could take a turn should the virus keep spreading, and consumer confidence take a hit.

“The U.S. economy, backed by the healthy labor market, enters this period in a strong position. However, last week’s financial market volatility and fears of a widespread coronavirus outbreak are clearly on the minds of policy officials. Long-term, further spread of the virus would likely dampen consumer confidence and spending, and ultimately slow economic growth,” said Kan in a statement. “The 10-year Treasury has fallen to an all-time low over the past week, bringing mortgage rates down with it. If Treasury rates decline further, it is likely that mortgage rates will follow, giving more homeowners the incentive to refinance. For prospective buyers, low rates boost purchasing power, although some may also pause their home search given the uncertainty.”

Investor and Foreign Buyer Interest

Experts say any negative impact on consumer confidence will be short-lived in relation to long-term investor interest.

“For long-term investors, this jolt is a bump in the road that will eventually only be a memory,” said Mark Hamrick, senior economic analyst for Bankrate, in a statement. “It will take some time to arrive at that point. As with the outbreak, we cannot be confident of the depth or duration of the market’s decline or the economic impacts in the short-term. But also similar to the spread of the virus, we know that it will have a conclusion.”

Valerie Post, partner at Engel & Völkers Boston, who works with a significant number of international clients (many coming from Asia), has seen a marked change regarding foreign buyers, but it has largely been positive.

“I was in China at the beginning of January and flew back into the States on Jan. 14. Information about the coronavirus was just starting to circulate and it was actually a boost to our business in the Boston area for the second half of January as our international buyers considered us a safe haven for a place to invest their money,” said Post in an interview with RISMedia. “As the virus continued to spread overseas, our business continued to get better with international buyers. Now that the global supply chain has started to be impacted, it is possible that we may see a slowing of the real estate market with reduced cash flowing from those buyers.”

The presence of Chinese foreign buyers in U.S. markets has already dwindled, says Forsman, but the spread of COVID-19 could have even greater repercussions for foreign investing.

“Certainly, this would drive those buyers even lower,” says Forsman. “We also have a significant buyer segment from India and other countries such as South Korea. Slowing of these international buyer segments would have a greater impact in our market.”

Yun agrees, stating disruptions in travel will significantly impact this segment of the market.

“There will be travel disruptions and hence a decline in viewing and sale of U.S. properties to the Chinese,” says Yun. “The longer the virus spreads without vaccine, the greater the decline.”

Property Management

According to the Institute of Real Estate Management (IREM), concern over the coronavirus has also reached the property management space. The organization released a statement that anyone with knowledge of a tenant or resident with a confirmed case of COVID-19, should contact the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC) or their local health department.
The organization also recommends that property managers do the following:

“We encourage everyone to regularly check [WHO and the CDC] for the latest information,” said the IREM statement. “While this is an evolving situation and concern is reasonable, we can all take an active role in preventing the spread of infection by following the expert guidance from these organizations.”

Residential Real Estate

What about from a more street-level perspective? Forsman says the fear of illness could keep consumers from willingly participating in activities that require meeting in person.

“Open houses, door knocking and any form of in-person prospecting could become far less popular,” says Forsman.

And this could have a secondary effect, giving disruptive business models that rely on technology the opportunity to make a dash for business.

“iBuyers could become more popular if sellers did not want potential buyers coming to their home for showings,” says Forsman, adding that resale for those properties could get tougher, however, which would negatively impact iBuyers.

To combat this, Forsman says brokerages must arm themselves with their own tech solutions that make it simple to transact without relying on in-person interactions.

“Real estate brokerages (like our company) are actually well-equipped to operate virtually. We can collaborate effectively, and process offers, contracts and money. We can certainly close contracts electronically, as well,” says Forsman. “The biggest challenges come from showings, inspections and other activities that tend to happen on location and in person.”

Williams expects her agents to express concern down the road if the virus spreads to her market, particularly from those in the midst of a transaction.

“We do have some expectations that agents will be asking questions, particularly in areas where the population has been impacted by the coronavirus,” says Williams. “For example, they may ask how to manage transactions for a property they are about to close on if the seller or buyer gets sick. Similarly, homeowners may be leery about putting their homes on the market in these areas and letting people in for showings.”

Overall, however, Williams says the most important thing is that people not panic.

“We should just be cautious and do all we can to stay healthy by taking precautionary steps,” says Williams.

“The seasonal flu impacts far more people so far and many expect the coronavirus can be slowed in places like the United States with better health systems and more resources,” says Forsman. “The most likely scenario is that this coronavirus will peak and then slow. This could be a great time to buy real estate while it is on sale.”

CREDITS: Liz Dominguez | c21Affliated

The post Coronavirus Epidemic: Cause for Concern in Real Estate? appeared first on National Association of Real Estate Brokers .

With mortgage relief in place, stimulus deal targets homelessness, public housing

Wed, 25 Mar 2020 23:51:00 GMT

Federal lawmakers came to an agreement early Wednesday on a $2 trillion stimulus package that will provide additional funds to aid the homeless and potentially provide rental assistance to Americans who have been impacted by the economic fallout of COVID-19.

The stimulus deal comes a week after President Donald Trump announced a sweeping moratorium on foreclosures for homeowners with mortgages backed by Fannie Mae or Freddie Mac or Federal Housing Administration mortgages on single-family homes. Federal regulators are also allowing payment deduction or deferral on mortgages backed by Freddie or Fannie for as long as year for those who have lost income or employment because of the novel coronavirus fallout.

What specific relief a homeowner will get depends on their situation, but terms have not been made public. According to NPR, federal regulators believe the entire mortgage industry will follow suit with providing relief, so if you’re in trouble, contact your mortgage servicer immediately. (You can find your servicer’s contact information on your mortgage statement.)

The housing measures in the stimulus package include $4 billion in grants to assist homeless shelters, $5 billion toward Community Development Block Grants (which can be used for rental assistance), $685 million for public housing, and $1.25 billion toward tenant-based rental assistance (housing vouchers).

The homeless are particularly vulnerable to the novel coronavirus, as they have no real ability to shelter in place. A homeless man in Houston , for example, was released back onto the streets after being treated at a hospital. The additional funding can help shelters better protect the homeless from getting—and spreading—the virus.

FHA loans and public housing residents account for more than 9 million households, while Freddie- or Fannie-backed mortgages account for the majority of single-family homes. The Freddie and Fannie moratorium will last at least 60 days.

The moves come in response to the economic fallout caused by the spread of COVID-19, commonly referred to as novel coronavirus, which could lead to unemployment rising as high as 20 percent, according to Treasury Secretary Steve Mnuchin.

Fannie Mae and Freddie Mac are guarantors on the majority of mortgages, which they buy and bundle into bonds called mortgage-backed securities. Most mortgages fall into this category, as 97.7 percent of mortgage securities were issued by the agencies so far in 2020, according to the Urban Institute.

This means if you have a mortgage, it was mostly likely sold to Freddie or Fannie and thus the foreclosure moratorium and payment relief likely applies to you. Homeowners who don’t have mortgages backed by Freddie or Fannie are likely to be subprime borrowers, condo owners, or owners of particularly expensive housing (the loan limit amount varies from county to county).

These measures may end up temporarily staving off disaster for the housing market. Otherwise, if unemployment spikes and homeowners default en masse, it would lead to a massive increase in available housing, reminiscent of the financial crisis of 2008.

In addition to the additional funding in the stimulus package, the Department of Housing and Urban Development (HUD) announced last it will encourage local public housing authorities (PHAs) to suspend evictions on public housing residents.

The moratorium on evictions of public housing residents, the majority of whom are elderly and/or disabled, would apply to more than a million households if every public housing authority adopted a moratorium. HUD does not have the legal authority to force PHAs to suspend evictions, but many of the largest ones have already done so, including New York, Boston, and Los Angeles. It is likely many others will follow.

The moratorium does not apply to housing voucher holders. HUD Secretary Ben Carson told the Los Angeles Times that an eviction moratorium for FHA-backed multifamily housing could be coming, but housing voucher recipients may need Congressional action. The stimulus deal provides $1.25 billion in additional funding for housing vouchers and $5 billion in Community Development Block Grants, which are dispersed to local jurisdictions to use at local government’s discretion on a wide variety of community development projects. Rental assistance to those experience economic hardship is among the possible uses.

Public housing projects have been strained since the outbreak of the novel coronavirus. Because PHAs are receiving less in rent, many are having to use funds that would typically go toward repairs and maintenance for basic operations such as paying staff and basic bills. The $685 million will help alleviate public housing’s budget shortfall.

While these measures protect millions of Americans, renters in private-market housing remain vulnerable to eviction should they suffer financial hardship because of the novel coronavirus.

But cities across the country —particularly those with expensive housing—have independently announced moratoriums on evictions that range from two weeks to indefinitely. New York, Los Angeles, San Francisco, and Miami are among the cities that have issued eviction moratoriums.

The private sector is responding to the crisis as well. Bank of America announced Thursday that it is offering relief to consumers and small business owners experiencing hardship because of the coronavirus, which will include mortgage payment deferrals. It will be done on a case-by-case basis and will run month-to-month.

JPMorgan Chase and Wells Fargo say they are also working with borrowers who have been impacted by the economic fallout of the novel coronavirus to provide relief, according to NPR. The situation is incredibly fluid, so if you are struggling, it’s important to contact your mortgage servicer as soon as possible.

CREDITS: Jeff Andrews | CURBED

The post With mortgage relief in place, stimulus deal targets homelessness, public housing appeared first on National Association of Real Estate Brokers .

Coronavirus (COVID-19) Resources: All in One

Wed, 25 Mar 2020 18:29:00 GMT

Tips, Tools & Resources

Housing, Mortgages & Evictions

The two Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, and the U.S. Department of Housing and Urban Development (HUD) announced unprecedented steps to help borrowers impacted by COVID-19 remain in their homes. Fannie and Freddie announced immediate suspensions of foreclosures and evictions for any borrower affected by the fallout of the virus crisis and unable to make their mortgage payment, not limited to homeowners who contracted COVID-19. HUD announced a similar policy. In addition, the GSEs will expand forbearance options for borrowers that could extend for at least 12 months. Borrowers utilizing forbearance will not face negative consequences at credit rating agencies.

Fair Housing & Discrimination

HUD is still conducting intake for housing discrimination complaints on the bases of race, color, religion, national origin, gender, disability and familial status. If anyone believes that they have been discriminated against on any of these bases, they can contact their local fair housing center , local FHAP or the human relations commission for help and guidance. You can also file an online complaint with HUD . If you have concerns about housing discrimination or additional resources to add here, contact: antoine.thompson@nareb.com

Housing Counseling

Presidential Declaration Of Disaster

If and when individual/public assistance money is approved for a disaster, it will be displayed here: https://www.fema.gov/disaster/3416. Information is updated every 24 hours.

Due to the COVID-19 outbreak, many cities and states are taking additional precautions to protect residents and stop the spread of this virus. In many areas, this includes the closure of restaurants (for dine-in services), gyms, universities, K-12 schools and several local businesses. Due to these closures, many consumers find themselves out of work, causing a financial hardship on their households. If you are experiencing a financial hardship due to the COVID-19 outbreak, please check with your local city and county government regarding financial resources that may be available to you during this time.

For Consumers

On March 18, 2020, Fannie Mae, Freddie Mac and HUD suspended all foreclosures and evictions for at least 60 days. This foreclosure and eviction suspension applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac. Borrowers that are not in foreclosure but are affected by the COVID-19 outbreak have other options including a payment forbearance. This forbearance would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus. You can find additional details on this moratorium here .

Here’s what the moratorium means for consumers with Fannie Mae and Freddie Mac loans:

For Consumers who are not familiar with a forbearance, please review information from the Consumer Financial Protection Bureau on forbearance options and what this will mean for your loan.

Recommended Steps:

Borrowers concerned about paying their mortgage due to this current crisis should contact their lender as soon as possible to discuss loss mitigation options. Many employees have experienced a loss of income because their employers were forced to close (i.e. restaurants, movie theaters, etc.) which has caused a hardship. The sooner you inform your lender of your hardship, the sooner they can offer you solutions to avoid mortgage delinquency. You should be prepared to provide documentation of your hardship and follow up with your lender regularly until you reach a resolution.

While many housing counseling agencies have transitioned to virtual and telephone counseling in accordance with “social distancing” guidelines, these agencies are still available to help guide you through your housing questions. You can locate a housing counseling agency in your area by clicking here .

For Housing Counseling Agencies

Housing Counseling Agencies should take the necessary precautions to protect their staff as well as their clients to prevent the spread of this virus. Many agencies have shifted to remote working for staff and are now offering virtual and telephone counseling in order to continue to meet the needs of clients. There are a number of free video conferencing websites that you may find helpful and that may make this adjustment more manageable.

We recognize that this is a new space for many agencies and guidance is needed to avoid disruption of services. If your organization loses the ability to provide housing counseling services, contact your Regional Coordinator.

Helpful links

Small Business

Both the Administration and Congress have announced that they want to make credit available to small business owners to help them weather this storm.

If you believe that you have experienced discrimination in accessing capital on the basis of: race, color, national origin, religion, sex (including gender), age, marital status, receipt of income from any public assistance program, or exercising in good faith your rights under the Consumer Credit Protection Act, you can submit a complaint with the Consumer Financial Protection Bureau .

While we know many of you are facing many challenges, we want to affirm our commitment to provide you with support services and resources as they come available. Here are some additional resources:

Emergency Loan Providers

Additional Resources

Telework & Technology

Many organizations have shifted to work-from-home for their employees. Here’s a list of free and low-cost software and services that may help.

All-One Suites

Document Sharing and Storage

Project Management Tools

Communications Tools

Other Tech Resources

Policy

On March 6th, H.R.6074 , the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 was enacted, which provides $8.3 billion in all new funding including $950 million for state and local health agencies to conduct vital public health activities, including surveillance, laboratory testing, infection control, contact tracing and mitigation. The bill also enables the Small Business Administration (SBA) to provide about $7 billion in disaster loans. A fact sheet on the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 can be found at this link .

On March 18th, the President signed H.R. 6201 , The Families First Coronavirus Response Act into law which will enhance the government’s response to the COVID-19 pandemic.

This legislation will ensure that:

For more information about this legislation please visit this link .

While the full economic implications of the disease are still unknown, what we do know is that the people who will face the biggest financial impacts of COVID-19 are the same people who are already financially strapped. For more information about COVID-19, as well as COVID-19 resources for small business and community and faith based organizations, please visit CDC.gov

Communications

Helpful Links

Health & Older Adults

In addition to low- and moderate-income older adults, many individuals impacted by this global pandemic are people who are negatively affected by social determinants of health . While social distancing is being emphasized and practiced at all levels of government, significant barriers to safe practices affect many workers and marginalized people, creating an increased risk to their health and public health at large. Those individuals at risk include people with disabilities, workers who do not have paid leave, those who do not have the option to work at home, people who lack affordable and healthy homes and those who lack access to adequate care.

The recent passage of H.R. 6201 provides some relief in the form of emergency paid leave, increased food security appropriations and more. However, housing still needs to be adequately addressed and more relief may be needed at both the federal and local levels.

Helpful Links

For our members who focus on older adults, one of the most vulnerable groups affected by the coronavirus, as well as other vulnerable populations, we offer the following resources, information and links.

CREDITS: NCRC

The post Coronavirus (COVID-19) Resources: All in One appeared first on National Association of Real Estate Brokers .

Protecting Your Credit during the Coronavirus Outbreak

Mon, 23 Mar 2020 21:50:00 GMT

As the number of coronavirus cases increases, it is also having a negative impact on the financial health of the economy at large and the economic well-being of individuals across the United States. The unusual nature of this pandemic has resulted in the temporary closing of schools, cancellation of events and disruption of the distribution of goods and services that may have the unintended consequence of impacting some people’s ability to pay bills on time.

If you are one of these impacted consumers you may be wondering:

These are important questions to consider because your FICO® Scores influence the credit available to you as well as the terms, such as interest rates and amount of credit extended. To be clear, medical conditions or diseases are not considered by FICO® Scores and will not directly impact a FICO® Score. However, the potential financial “fall out” of missing a payment, charging credit cards up to and over their limit or opening several new credit accounts over a short period of time can have a negative impact on your scores.

So, what should you do to help yourself and monitor changes to your FICO® Scores if your financial situation has been impacted by coronavirus?

For example, your lenders may work with you to increase your available credit, set up a temporary deferred payment plan, or temporarily place the loan in forbearance (meaning you may get temporary relief from having to make full payments on your credit obligations). The placement and reporting of an account in forbearance or a deferred payment plan in and of itself does not negatively impact a FICO® Score.

Each lender is likely to have their own unique policies, so if you have loans from different financial institutions, you may want to contact each of them to cover all of your bases.

CREDITS: Tom Quinn | FICO Blog

The post Protecting Your Credit during the Coronavirus Outbreak appeared first on National Association of Real Estate Brokers .

Fannie Mae, Freddie Mac, HUD suspending all foreclosures and evictions

Thu, 19 Mar 2020 20:09:00 GMT

Foreclosure moratorium will last for 60 days.

Cities and states across the country are already suspending evictions and foreclosures in response to the spread of the coronavirus, but the federal government is taking the biggest step so far to keep people in their homes.

President Donald Trump announced Wednesday that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April.

HUD later announced its official policy, stating that the Federal Housing Administration is enacting an “immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages” for the next 60 days.

That matches the policy announced Wednesday by the Federal Housing Finance Agency .

The FHFA announced Wednesday that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.”

That would mean the moratorium lasts through mid-May, at least.

According to the FHFA, the foreclosure and eviction suspension applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac.

“This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency,” FHFA Director Mark Calabria said in a statement.

Given that Fannie and Freddie are the largest mortgage financers in the country, the move is a sizable one.

“As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible,” Calabria added. “The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”

The FHA foreclosure moratorium applies to homeowners that have an FHA-insured Title II Single Family forward and Home Equity Conversion mortgage.

“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” HUD Secretary Ben Carson said. “The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”

The HUD announcement directs mortgage servicers to “halt all new foreclosure actions and suspend all foreclosure actions currently in process; and cease all evictions of persons from FHA-insured single-family properties.”

Earlier this month, the FHFA and HUD reminded mortgage servicers of their options for borrowers affected by the COVID-19 outbreak.

Included among those options is payment forbearance, which would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus.

The FHA also stated that it is encouraging servicers to “offer its suite of loss mitigation options to distressed borrowers – including those that could be impacted by the Coronavirus – to help prevent them from going into foreclosure.”

According to the FHA, those options include “short and long-term forbearance options, mortgage modifications, and other mortgage payment relief options available based on the borrower’s individual circumstances.”

Trump made the initial announcement on HUD’s policy during a Wednesday press conference discussing the growing impact of COVID-19.

“The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April,” Trump said. “So, we’re working very closely with Dr. Ben Carson and everybody from HUD.”

The move comes at a time when civil courts and other housing authorities are shutting down in the wake of the virus, so it’s unlikely that many jurisdictions would even be able to process evictions and foreclosures at this point.

Foreclosure and eviction moratoriums are not a new step, but the government usually puts them in place in areas that suffered a natural disaster . But the spread of the virus has necessitated a nationwide moratorium.

“This is an uncertain time for many Americans, particularly those who could experience a loss of income. As such, we want to provide FHA borrower households with some immediate relief given the current circumstances,” Federal Housing Commissioner Brian Montgomery said. “Our actions today make it clear where the priority needs to be.”

In its announcement, the FHFA said that it will “continue monitor the coronavirus situation and update policies as needed.”

CREDITS: Ben Lane | HousingWire

[ Update: This article is updated with additional information on HUD’s policies and quotes from HUD officials. ]

The post Fannie Mae, Freddie Mac, HUD suspending all foreclosures and evictions appeared first on National Association of Real Estate Brokers .

Treasury and IRS to delay tax payment deadline by 90 days

Wed, 18 Mar 2020 17:47:00 GMT

Darla Mercado

The post Treasury and IRS to delay tax payment deadline by 90 days appeared first on National Association of Real Estate Brokers .

Chief mortgage regulator working on plan for potential spike in delinquencies from coronavirus

Wed, 18 Mar 2020 01:23:00 GMT

KEY POINTS

The post Chief mortgage regulator working on plan for potential spike in delinquencies from coronavirus appeared first on National Association of Real Estate Brokers .

Black Homeownership Shows Signs of Healing From the Wounds of the Great Recession

Mon, 09 Mar 2020 14:54:00 GMT

The U.S. black homeownership rate surged at the end of the 2010s, and black homeownership was higher by 2018 than its mid-decade average in a majority of the country’s large metro areas.

According to the most recent Q4 2019 Housing Vacancy Survey , the black homeownership rate surged 3.4 percentage points in the last two quarters of 2019, to 44 percent – a level largely in line with historic norms, but one not previously broached since 2012. The recent uptick is an encouraging sign that black homebuyers are increasingly succeeding in getting their slice of the American dream after decades of fitful progress.

Data from the decennial census shows the black homeownership rate rising from 20.5% in 1900 to 41.6% by 1970 – a gain of 21.1 percentage points. This gain exceeded the 17.1 percentage point jump in non-black homeownership over the same span, and indicates that black households were becoming relatively more able to share in the national wealth through the middle and latter stages of the 20 ^th century. The black homeownership rate continued to rise into the 1980s and 1990s, peaking at more than 46% in 2007, the eve of the Great Recession.

But the Great Recession did not hit all communities equally , and black homeowners were hit hardest in the housing bust, reversing gains accumulated over decades and knocking the national black homeownership rate back down to 41.5% by 2018 — in line with 1970. In the aftermath, it remains clear that some of the sores from supposedly bygone eras marked by redlining and other overtly discriminatory policies are still open: According to the Zillow Group Consumer Housing Trends Report , black home buyers are more likely to be at least somewhat concerned about qualifying for a mortgage (59%) than white buyers (46%). And buyers of color are more likely to be denied financing at least once before being approved for a mortgage (76%) than white buyers (15%).

The climb back – slow in some months, rapid in the most recent period — is in line with national averages in homeownership that have been rising steadily since hitting multi-decade lows during the middle years of the 2010s. But in some places, black homeownership has been climbing faster and/or for longer than in others. In 27 of the 50 metros with the largest black populations and available data, the black homeownership rate was higher by the end of 2018 than it was during the middle of the decade. In 8 of these large markets, the increase was 2.5 percentage points or more.

This rate has grown the most since mid-decade in Sacramento (+7.8 percentage points), Phoenix (+5.4), Orlando (+5.3), San Francisco (+4.4) and Portland (+3.3). And in some cases, the rate of growth in the black homeownership rate has exceeded that of all other households since mid-decade, meaning the homeownership gap between black households and other households is shrinking. Black households have closed the gap the most in Sacramento (10.1 percentage points closer), Orlando (4.9) and Richmond (3.7).

Still, wide and widespread gaps between black and non-black homeownership persist. In 2018, the U.S. homeownership rate for non-black households was 26 percentage points higher than the black homeownership rate. In none of the 50 largest metros by black population does the black homeownership rate exceed the non-black rate. The smallest margins are found in Fayetteville (15ppts), Orlando(15ppts), Washington (16ppts), Charleston (17ppts), and Miami (18ppts). The largest margins are in Minneapolis (51ppts), Pittsburgh (41ppts), Milwaukee (40ppts), Cleveland (38ppts), and Indianapolis (35ppts).

In general, areas where black residents make up a larger share of the overall population tend to also have higher rates of black homeownership. The large metros with the highest black homeownership rate are Birmingham (52.2%), Washington, D.C. (51.4%), Richmond (49.9%) and Atlanta (48.2%). These metros rank seventh, eighth, fifth and third, respectively, with the highest share of black residents.

There are also some areas where the black homeownership rate is higher than might be expected based solely on the size of area’s black population. San Antonio has the 37th-highest share of black residents among markets included in this analysis, but the black homeownership rate there (42.9%) ranks 14th. The situation is similar in Riverside (15th-highest black homeownership rate; 35th-highest share of black residents), Orlando (6th-highest black homeownership rate; 24th-highest share of black residents) and Sacramento (23rd-highest black homeownership rate; 39th-highest share of black residents).

Treh Manhertz

Zillow

The post Black Homeownership Shows Signs of Healing From the Wounds of the Great Recession appeared first on National Association of Real Estate Brokers .

Black homeownership trails other groups. What it means for millennials looking to buy

Wed, 04 Mar 2020 19:09:00 GMT

By Lauren Lindstrom

The homeownership rate for black Americans fell under 41% in 2019 — pushing it below the levels in the years immediately after racial discrimination in housing was banned more than 50 years ago.

Gaps in homeownership rates exacerbate existing racial wealth disparities and hamper the financial stability of the broader community, said Donnell Williams, president of the National Association of Real Estate Brokers, who recently spoke to the group’s Charlotte chapter.

“It affects generations. Your children and your children’s children,” he said. “Because once we own our home, it is financial security.”

During the second quarter of 2019, 40.6% of African Americans nationwide were homeowners. That’s lower than the rate in 1970, just two years after the Fair Housing Act passed. It protects Americans against housing discrimination based on race, religion, sex and other demographic characteristics.

The homeowner rate for black Americans rebounded to 44% by the end of 2019, but was still far lower than 73.7% of white Americans and 65.1% of all Americans who owned a home, according to the U.S. Census Bureau.

Williams shared the findings of his organization’s annual “State of Housing in Black America” report, which details homeownership rates, loan patterns and economic mobility for African Americans.

That disparity now has reached a key demographic: white millennials are homeowners at nearly three times the rate of their black counterparts — 46% to 16%, respectively, according to the report.

MILLENNIALS SLOW TO ENTER THE MARKET

About 1.7 million black millennials in the United States earning $100,000 a year are financially ready to buy but haven’t, Williams said. People in that generation — those born between 1981 and 1996 — aren’t buying homes at the rate their parents and grandparents did , the report shows.

“These are the lingering effects of the recession,” Williams said. “They may have seen Mom and Dad get foreclosed on. They may be, for first time in their whole family, homeowners.”

Other factors, including student loans and credit issues increase financial pressure on younger potential borrowers and leave many thinking buying a house isn’t possible for them, said Faith Triggs, a real estate broker and member of Charlotte Crown Black Real Estate Association.

Financial counseling and down payment assistance can help get them ready, she said, but it can take much longer than other clients. Triggs said she sees the long-standing effects of now-outlawed discriminatory practices like redlining, when the government and private sector excluded African Americans from buying homes in certain neighborhoods and denied access to loans and other financial services.

“We have all of these all these issues with particularly within the black community because we have been abused by the system,” she said. “We (as real estate agents) have to go back in and build trust.”

This work was made possible in part by grant funding from Report for America/GroundTruth Project and the Foundation For The Carolinas.

Credits: Lauren Lindstrom | Charlotte Observer

The post Black homeownership trails other groups. What it means for millennials looking to buy appeared first on National Association of Real Estate Brokers .

NAREB and NAACP sign ground-breaking agreement today to increase Black homeownership

Mon, 24 Feb 2020 21:16:00 GMT

The National Association for the Advancement of Colored People ( NAACP ) and The National Association of Real Estate Brokers have announced a partnership that will help ensure that black individuals and families have access to quality financial education, appropriate financial products, accredited counseling services, and financial assistance to have a better chance at increasing black wealth through homeownership .

“NAREB stands together with the NAACP in this commitment to our members, leaders, and most importantly, our clients and constituents, with the goals, objectives, and initiatives outlined in this memorandum of understanding,” stated NAREB President Donnell Williams in a statement to Atlanta Daily World .

“The “R” in NAREB stands for “Relationships” and this agreement demonstrates the power of relationships through partnership. We are grateful for this opportunity to fortify and expand our current relationship with the NAACP, which has proven to be a pillar organization for our people for 110 plus years. Our members are the commanders and guardians of our communities and this MOU will provide the template, framework, and formula for successful collaboration which will create positive change nationally and globally. We must work together to organize and strategize our efforts.”

Highlights of the NAREB and NAACP Empowerment Program commitments:

This Article is also featured in the following publications:

The post NAREB and NAACP sign ground-breaking agreement today to increase Black homeownership appeared first on National Association of Real Estate Brokers .

Closing the Racial Ownership Gap: Is It Possible?

Wed, 12 Feb 2020 07:37:00 GMT

The gap between black and white homeownership is greater than it was prior to the Fair Housing Act passage in 1968. No major city has come near to closing the black-white homeownership gap in the U.S., either, even in majority black cities, according to data from the Urban Institute. The consequences of this pressing minority ownership gap—present not just for African Americans but also for Hispanics, Asian Americans, and other minority populations—could stall ownership numbers in the future, panelists at the National Association of REALTORS®’ Policy Forum in Washington, D.C., said on Thursday during a session.

After all, many of these minority groups represent a rapidly expanding population within the U.S. “This is where the growth of your clients can come from,” Jim Park, past chair and chairman emeritus at the Asian Real Estate Association of America, said during the session. “The homeownership rates of whites may not go up much more than 73 percent. But minority groups—African Americans, Hispanics, and Asian Americans—have plenty of room for growth. They’re going to be drivers of first-time buyers in the future. We need a perspective change in the industry that this is an expanding market that we need to embrace.”

But to do that, lawmakers, policy makers, and others may need to figure out why racial ownership gaps continue to persist. Since the passage of Fair Housing Act in 1968, “you’d expect the gaps in the homeownership rates of racial groups to close, but we haven’t seen that. . . . The gap between African Americans and white Americans has actually widened,” said Bryan Greene, NAR’s director of fair housing policy, who moderated Thursday’s panel. “Lower ownership rates can have widespread effects on minorities, particularly in fueling wealth gaps.”

But some of the delay could be from stalls in ownership rates from previous generations, she noted. A child’s likelihood of being a homeowner increases by 8.4 percentage points if their parents are homeowners. White parents tend to have the highest homeownership rates of any race and also have greater wealth because of that. McCargo said that the difference in parental homeownership and wealth explains 12 percent to 13 percent of the homeownership gap between black and white young adults.

“Homeownership is a wealth builder going forward,” she said. “It provides wealth building for generations. Equity is passed down from generation to generation, and this is part of the reason why this ownership gap persists today. We’re setting up future generations for dire economic and wealth ability if we don’t figure this out.”

Asian Americans have climbed to about a 59% rate of ownership since the Great Recession. But challenges in ownership persist among this population, too, despite some stats that show this minority segment ahead with many financial variables. Among Asian Americans, the average household income is $72,000—$22,000 higher than the general population, Park said. The credit score of Asian Americans is comparable or slightly higher than white populations. Those who do buy tend to have down payments that are higher, too. “So you’d expect the ownership gap to be flipped, but it’s not,” Park said, even as their population numbers have grown in the U.S. The Asian population in the U.S. has increased 70% in the Southeast in the last decade alone, Park noted, with Texas having the fastest-growing population with the Asian community.

“The challenge is that the population is growing at a fast clip, but immigration and language have become some of the barriers for this community,” Park said. “We need in-language outreach to fulfill real estate and loan applications.”

Education is also key to growing minority homeownership, added Donnell Williams, president of the National Association of Real Estate Brokers. NAREB is launching a nationwide campaign that will include a 22-city tour aimed at fostering greater ownership rates among minority populations. “We believe that education is a big piece and sharing available down payment assistance and credit programs available,” Williams said. “We believe if we educate about what is available that could help increase homeownership.” NAREB has created a website, HouseThenCar.com, with sections on applying for a mortgage, budget and credit tools, and the homebuying process.

NAREB is also advocating for legislation to help address minority ownership opportunities, such as the American Dream Downpayment Savings Plan, a proposal by the Department of Housing and Urban Development that would authorize prospective buyers to save money in a designated account. The savings could accumulate and be withdrawn for a tax-free down payment when purchasing a home.

“Discrimination is still present and still rampant,” Donnell said, adding whether it’s through access to credit or through the redlining of properties. “We need to still sound that battle cry” to get more minorities owning homes in the future.

Credits: Melissa Dittmann Tracey / NAR REALTOR Magazine

The post Closing the Racial Ownership Gap: Is It Possible? appeared first on National Association of Real Estate Brokers .

How Closing The Racial Wealth Gap Would Change Black History

Mon, 10 Feb 2020 12:23:00 GMT

One of the more damaging aspects of Black history in America has been the lingering wealth gap along racial lines that disproportionately benefits white people. And while many people have offered up various solutions to first narrow and then close that persistent widening wealth gap between white folks and everybody else, the end goal has been elusive, to say the least.

But one of the most common ways proposed to help shrink the racial wealth gap has been through homeownership, something that has historically and negatively affected Black people, in particular, thanks to racist practices like “redlining” entire neighborhoods where white people did not live.

Economists have agreed that homeownership is a sound strategy to narrowing the racial wealth gap. But they also agree that because Black families have an exponentially lower net worth than white families, coming up with enough money for a down payment on a home is an impossibility for many.

Analysis from Forbes suggests that a combination of stricter enforcement of housing anti-discrimination laws and lower loan modifications could help create more Black homeowners, a status that can ultimately translate to the type of generational wealth via real estate that can prove transformational when it comes to personal finances. While the payout wouldn’t be immediate, if done right it would create a fundamental shift in the retention and distribution of wealth along racial lines.

To be sure, there are other ways economists say that narrowing and closing the racial wealth gap[ can be accomplished, including but not limited to evening the playing field in education — especially from a young age — and labor markets, including raising the minimum wage.

But homeownership seems to be the most foolproof method to close the racial wealth gap regardless of how realistically attainable either may be.

2020 Democratic presidential candidate Michael Bloomberg, a billionaire, has also been a major proponent of using homeownership to make inroads in the racial wealth gap and cited former President Barack Obama ’s now-defunct Neighborhood Equity and Opportunity Office that focused in part on Black and brown communities. Bloomberg in January told his supporters during a visit to Tulsa, Oklahoma — the early 1900s site of Black Wall Street with thriving Black-owned businesses that ended in violence during a race war waged by angry and jealous white people — that reopening the National Neighborhood Equity and Opportunity Office, which President Donald Trump rolled back, would be an economic game-changer for Black and brown folks.

“These things work. Obama started it, Trump canceled it, we got to bring it back,” Bloomberg said at the time. “If we could eliminate the racial wealth gap in this generation, we could add $1.5 trillion to the American economy. Everyone would benefit. So, what are we waiting for?”

Credits: NEWSONE

The post How Closing The Racial Wealth Gap Would Change Black History appeared first on National Association of Real Estate Brokers .

How Near North came to be one of Minneapolis’ largest black communities

Fri, 07 Feb 2020 12:18:00 GMT

By Eric Hankin-Redmon

The Near North community of Minneapolis—made up of the neighborhoods of Harrison, Hawthorne, Jordan, Near North, Sumner-Glenwood, and Willard-Hay—has had a major African American presence since the early 1900s. Distinguished by its own businesses, organizations, and culture, it remains a hub of African American Minnesotan life in the twenty-first century.

Restrictive covenants written into real estate deeds limited blacks to certain areas of Minneapolis. During World War I, many began moving from longtime-settled neighborhoods, such as Seven Corners near the University of Minnesota, the South Side, and the North Side. The Sumner Field public housing project, completed at 1101 Olson Memorial Highway in 1938, was segregated, but its white Jewish and black residents generally interacted peacefully.

When blacks arrived in the Twin Cities, they often did not have access to the same community-based agencies as whites, so black churches, social organizations, and barber and beauty shops provided support. One such place, the Phyllis Wheatley Settlement House , opened in 1924 as a recreation center for African American children. African American activist and writer Ethel Ray Nance also became associated with the Wheatley House.

Black business began to thrive, too. In the 1940s and 1950s, barber Sylvester Young and his five brothers owned several shops in Minneapolis and St. Paul, with some located in Near North. Harry Davis Sr., an activist and former boxer, was one of the first black executives in the state. He helped establish the Minneapolis Urban Coalition and was the first black Minneapolis mayoral candidate in 1971.

By 1960, one third of Minneapolis’ African Americans lived in Near North, making it the city’s largest black community. Blacks accounted for 8 percent of the community’s total population. Near North’s African American population, excluding the various Glenwood-area public housing projects, was 55 percent. The longtime Jewish community began to disperse around this time, mostly to suburbs like St. Louis Park.

In 1966, Syl Davis founded The Way, a community youth center. The Way was one of the few resources of its kind that was organized and used mostly by African Americans. The community center provided a space for black youth to have a sense of community and belonging, and it became The New Way in 1975. The center turned into a hotspot of the so-called Minneapolis Sound of the 1970s and 1980s.

In 1967, racially charged civil unrest broke out along Plymouth Avenue . This unrest was the result of ongoing racial discrimination and frustration about Near North being neglected by the city. The widening of Olson Memorial Highway bisected Near North, affecting the vitality of local businesses on the south side of the street. The arrival of a federal highway, Interstate 94, in the 1970s further cut off the North Side from downtown.

In the 1970s and 1980s, blacks began moving to other parts of the metro area, including nearby suburbs, and Near North’s population decreased. In the 1980s, the neighborhood became known for its rising crime rates. A variety of people migrated into the neighborhood, including young white professionals and Mexican and Southeast Asian immigrants.

In 1995, the class-action lawsuit Hollman v. Cisneros determined that poor, mostly minority families had been concentrated in a seventy-three-acre site within the Near North Community. This led to the demolition of hundreds of public housing units and to the construction of the Heritage Park development in 2000. While many stayed in the area, many more were displaced and moved to nearby neighborhoods or nearby inner-ring suburbs, notably Brooklyn Center.

In November 2015, Minneapolis police fatally shot black North Minneapolitan Jamar Clark, an event that sparked a series of protests throughout the region and nation.

In 2018, the Minneapolis African American Heritage Museum and Gallery opened on the corner of Penn Avenue and Plymouth Avenue North. Its goal is to preserve the history of Minnesota African Americans, and to showcase the community’s achievements.

Credits: Eric Hankin-Redmon / MINNPOST

The post How Near North came to be one of Minneapolis’ largest black communities appeared first on National Association of Real Estate Brokers .

NAREB 2020 Mid-Winter Conf LV PressRel

Fri, 07 Feb 2020 02:50:00 GMT

REALTISTS OPEN MID-WINTER CONFERENCE BOUYED

BY BLACK HOMEOWNERSHIP RATE UPTICK

National Association of Real Estate Brokers (NAREB) meet in Las Vegas, NV to strategize on approaches that continue to increase Black homeownership across the nation.

Washington, DC – February 6, 2020 – The nation’s oldest professional, minority real estate trade association convenes its 73rd Mid-Winter Conference on the heels of a six-month increase in Black homeownership rates. According to the latest U.S. Census Bureau reports, Black homeownership trended upward for two consecutive quarters, from a low of 40.6% in the 2 ^nd quarter 2019 to ending the year at a rate of 44%.

Keeping up the momentum is the primary focus of NAREB’s Mid-Winter Conference , convened under the banner, “Educate, Empower and Motivate and scheduled for February 8-13, 2020 , at the Mirage Las Vegas Hotel , 3400 S. Las Vegas Blvd., Las Vegas, NV 89109 . Conferees from across the nation representing Black real estate practitioners; homeownership advocates; faith-based leaders; government officials; and financial services and mortgage lending executives are expected to be in attendance.

“The back-to-back Black homeownership increases indicates to us that Black Americans are purchasing homes at a higher, more consistent rate. NAREB’s approach of educating, empowering and motivating Black Americans through our targeted, boots-on-the-ground outreach strategies appear to be bearing fruit,” said Donnell Williams, NAREB president .

As Las Vegas-based NAREB Region XV Vice President Shanta Patton states, “We will not leave one family behind in this movement to increase Black homeownership. Whether Black Americans have a desire to buy their first home, want to explore the benefits of real estate investment, or build sub-divisions, NAREB will be right there guiding them.”

Conference speakers and special guests include: Reverend Jesse L. Jackson, Sr ., civil rights activist, founder and president of the Operation PUSH Coalition; U.S. Congressman Steven Horsford , (D-NV); Bakari Sellers , CNN political analyst; Aaron Ford, Nevada State Attorney General ; Assemblywoman Dina Neal , Nevada Legislature; Commissioner Lawrence Weekly , member, Clark County (NV) Commission; Marki Lemons-Ryhal , widely-followed social media guru, and Landi Spearman , multigenerational change expert, among other noted speakers. R&B song stylist, Vivian Green is slated to perform at the “Wine Down” Welcome Reception.

The Mid-Winter agenda builds upon NAREB’s course of action that targets specific age demographics, speaks to their lifestyles and informs them about relevant wealth building and wealth keeping strategies. “NAREB strategies, like our ‘House Then the Car’ initiative designed to reach the approximately 1.7 million Black millennials currently renting, speaks to the value of building wealth through homeownership or real estate investment early in their life journey,” Williams stated. NAREB offers a healthy dose of reality and how this group can limit their extravagancies in favor of a solid wealth building future.

Williams went on to say that, “NAREB offers a different message through our ‘Realtist Opportunities for Seasoned Individuals’ initiative, that speaks to Black American seniors. We’re not offering a one size fits all solution to Black Americans seeking wealth building solutions through real estate.”

For more information about the NAREB Mid-Winter Conference, visit: www.nareb.com .

# # # # #

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Note to media: Interview opportunities for speakers are available with prior notice.

—–

Contact:

Joanne Williams I 202-364-0024 I jlwilliams@barrington-associates.com

Jill Forte I 770-896-8723 I Jill.Forte@nareb.com

The post NAREB 2020 Mid-Winter Conf LV PressRel appeared first on National Association of Real Estate Brokers .

Statement by President Donnell Williams on Upward Trend of Black Homeownership Rate

Fri, 31 Jan 2020 18:25:00 GMT

Washington, DC – January 31, 2020 – The National Association of Real Estate Brokers (NAREB) is guardedly optimistic regarding the current upward trend of the Black homeownership rate of 44% as stated by the U.S. Census Bureau in its 4 th quarter 2019 report. The reported rate represents a second in a row increase up from the 3 rd quarter rate of 42.9% and an uncharacteristic jump from the 2 nd quarter 2019 Black homeownership rate of 40.6%. While we remain positive about the upward trend, NAREB is mindful that a nearly 30 percentage point gap separates the current non-Hispanic White homeownership of 73.7% from the Black homeownership rate of 44%.

As stated in a previous look at the 3 rd quarter rates, brisk seasonal sales could account for the increased Black homeownership rate. However, these back-to-back quarterly increases into the 4 th quarter indicate to us that Black Americans are purchasing homes at a higher, more consistent rate.

The nation’s economic vibrancy, lower unemployment levels, a restored confidence in purchasing real estate and low interest rates, coupled with an increasingly more informed Black consumer can all be factored into the six months of rate increases. NAREB’s belief in our boots- on-the-ground approach will continue to support and contribute to the upswing in Black homeownership. It is important to note that the last time the Black homeownership rate neared the 4 th quarter 2019 level was in 4 th quarter 2012 when the U.S. Census reported a 44.5% rate which ticked consistently downward until the 3 rd quarter of 2019.

NAREB remains mindful of the volatility of the real estate marketplace, but trusts that Black consumers, coupled with our concerted efforts to educate and inform Black home buyers about the wealth building benefits of owning a home will continue to boost Black homeownership and economic futures.

#####

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Media Contact:

The post Statement by President Donnell Williams on Upward Trend of Black Homeownership Rate appeared first on National Association of Real Estate Brokers .

How to finance solar panels for your home

Mon, 13 Jan 2020 15:45:00 GMT

By Holly D Johnson

You may be wondering why more people are going solar these days, but it’s not hard to see why once you consider the financial — and environmental — benefits.

Not only can adding solar panels to your home mean never having to pay an electric bill again, but the investment can pay off in terms of increased property value. And if you’re worried about your carbon footprint, adding solar panels to your house can reduce your energy usage and impact on the planet in one fell swoop.

Unfortunately, there’s one big “gotcha” that comes with this home upgrade: Going solar isn’t cheap. The cost can even be considered exorbitant. The good news is there are IRS tax credits you can qualify for that will lighten the financial load, but you still need to find a way to pay upfront.

How much do solar panels cost?

Finding out the average cost of solar panels is the first step in the process for most people considering this option. After all, assessing the cost of the solar panel equipment plus the installation cost is crucial for families deciding if they can truly afford this investment in their home.

According to a report from the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) , most people paying for a residential system should plan on forking over between $2.70 and $3.11 per watt, data through March 2018 shows. The NREL notes that most residential rooftop systems are between 3 and 10 kilowatts in size. This means most residential systems could cost between $8,100 and $9,330 for a 3 kilowatt system. A larger 10 kilowatt panel system would range from $27,000 to $31,000.

Of course, this all depends on the type of solar panels you end up buying. There are different types of solar panels for residential systems, including gridtie systems that require a connection to your utility company, off-grid systems and gridtie systems with a battery backup. The latter option is the most expensive, but it may offer the best of both worlds. There are also different brands of solar panels to choose from, and installation costs can vary depending on where you live.

How much money can you save by going solar?

Spending up to $30,000 and potentially more for a solar upgrade may seem insane. However, it’s not hard to see how this investment could pay off in the long run just in terms of eliminating electrical usage.

According to data released by the U.S. Energy Information Administration in October 2018, the average monthly electric bill varied nationwide from a low of $81.65 in Utah to $149.33 in Hawaii.

When tracking bills by region, average monthly electric bills worked out to:

The total average for the entire United States worked out to $111.67 per month at last count, so we’ll use that as a basis to see how much you could save.

That monthly amount — which you may never pay again — works out to $40,201 over 30 years. So, depending on where you live and the tax incentives you take advantage of, your total electricity savings could exceed the cost of your solar panel installation, as long as you stay in the home long enough.

To get a good idea of what solar panels might cost you (and save you) given your home’s specific location, try using the Project Sunroof tool from Google. Just enter your address, and you’ll see the projected solar paneling costs for your specific property, as well as your expected savings over time. It will also break down the environmental impact your installation could have.

Tax credits that can reduce solar installation costs

If you act fairly quickly, federal tax credits can also help reduce how much solar panels cost. Through the end of 2020, you can receive a 26 percent federal tax credit for the cost and installation of a qualifying solar system. The credit drops to 22 percent for the tax year 2021, but that’s still a big chunk of money considering the high costs involved in solar installation.

To qualify for the credit, your solar system must be installed in a home you own and use as a residence. Rental properties don’t qualify for this credit, but second homes and vacation homes do. The solar system you install must also provide electricity for the house, and it needs to meet all state and federal requirements in terms of fire and electrical codes.

There may also be statewide and city-based incentives you can take advantage of, including valuable rebates and more. To see what’s available in your area, check out the Database of State Incentives for Renewables & Efficiency .

Three ways to finance solar panels

You can absolutely finance your solar panel installation cost with cash up front, but there are ways to borrow the money if you want to pay it off over time. Taking out a home improvement loan can help you stretch the payments on your investment out over several months or years. It can also help you “front” the money while you wait for federal tax credit money to head your way.

Personal loans

By and large, the best way to finance a solar project is probably with a personal loan. Personal loans come with fixed interest rates and a fixed monthly payment that will never change through the entire life of the loan. They also typically mean faster access to cash (sometimes as little as a day or two), and many come with no origination fees.

The best part? Personal loans are unsecured, so you don’t have to put your home up as collateral or have a ton of home equity to qualify.

Home equity loans and HELOCs

If you have a lot of equity in your home and prefer to borrow against it, you can also consider a home equity loan or a home equity line of credit, or HELOC . Home equity loans work line personal loans, as they have fixed interest rates, a fixed repayment timeline, and the same monthly payments.

HELOCs, on the other hand, give you a line of credit you can borrow against similar to a credit card. With HELOCs, you’ll typically have a variable interest rate, which means your payment could go up or down as your account balance and rate fluctuates.

These two loan options let you use your home as collateral, but you can typically only borrow up to 85 percent of your home’s value across a first mortgage and second loan. The home equity requirement for these loans limits the number of people who can go this route.

In addition to needing a lot of home equity to qualify, home equity loans and HELOCs come with an application process that is more involved. You may, for example, have to get your home appraised to qualify. On the flip side, they can also come with low interest rates and fair terms for consumers with good or great credit.

FHA and Fannie Mae loans

There are also two types of mortgage loans — the FHA 203(k) loan and the Fannie Mae HomeStyle loan — that can help you finance both the purchase of a home and the installation of solar panels and other upgrades simultaneously. You can also use these loans to refinance your existing mortgage and pay for your solar upgrades that way.

The bottom line

Going solar can help you reduce your environmental impact as well as your household operating costs. And with valuable federal tax credits available (at least through 2021), you can lessen the up-front costs of installing them, too.

If you need more help financing your solar panel installation, a handful of loan options can help you do it. Just make sure to compare all your financing options — as well as the rates and terms they come with — before you decide.

Learn more:

Credits: Holly D Johnson / BankRate

The post How to finance solar panels for your home appeared first on National Association of Real Estate Brokers .

A.I. Could Be The New Play To Increase Minority Homeownership

Fri, 03 Jan 2020 15:59:00 GMT

By Kori Hale

Artificial Intelligence and its inherent bias may not be as judgmental as previously thought, at least in the case of home loans. It appears the use of algorithms for online mortgage lending can reduce discrimination against certain groups, including minorities, according to a recent study from the National Bureau of Economic Research . This could end up becoming the main tool in closing the racial wealth gap, especially as banks start using AI for lending decisions.

The Breakdown You Need to Know: The study found that in person mortgage lenders typically reject minority applicants at a rate 6% higher than those with comparable economic backgrounds. However, when the application was online and involved an algorithm to make the decision, the acceptance and rejection rates were the same. Even with AI helping minority borrowers get approval online, they’re still paying more under algorithmic lending. In 2017, $2.25 trillion of the $13 trillion of outstanding household debt in the U.S. was associated with minority households.

CultureBanx simply stated, what makes AI based lending much more altruistic when it comes to home loans is that they don’t want to leave any money behind. The study’s researchers noted that “if lenders were to discriminate in the accept/reject decision, it would imply that money is left on the table. …(s)uch unprofitable discrimination must reflect a human bias by loan officers.”

Banking on A.I: If we look at banks they have argued in the past that they’re in a bind when staring down potentially conflicting government mandates to reduce balance sheet risk, while not discriminating against any one demographic group. As financial institutions dive further into deep learning technology, Bank of America and Capital One have AI researchers working on how to make the opaque technology transparent enough for wider use like mortgage lending.

There are laws in place like the Equal Credit Opportunity Act, which state banks have to prove they’re not discriminating based on traits like gender or race. “We want to understand how the decision is made, so that we can stand behind it and say that we’re not disfavoring someone,” said Hari Gopalkrishnan, client-facing platforms technology executive at Bank of America during its tech summit last year.

Wealth Gap Algorithms: Disparities in homeownership rates are cited as the leading cause in the racial wealth gap. There are several studies which indicate the median white family holds more than ten times the wealth of the median African American family. McKinsey projected that closing the racial wealth gap could net the U.S. economy between $1.1 trillion and $1.5 trillion by 2028.

The U.S. Census bureau reported that Black homeownership dropped to its lowest level at 40% and has been steadily declining since its 2004 peak. It is possible that AI could help reverse this trend as researchers calculate that, from 2009 to 2015, 0.74 to 1.3 million minority applicants were rejected, who would have been accepted were it not for discrimination by loan officers.

There are online mortgage platforms like Better.com that cited a five-fold increase in Hispanic and African American borrowers between the ages of 30 and 40 on its platform over the last year.

On the opposite end of the spectrum, a Zillow report found that AI platforms taking over bank lending decisions could put black family wealth further behind, which is in direct contrast to the National Bureau of Economic Research findings. In 2016, 20.9% of black borrowers and 15.5% of Hispanic borrowers were rejected for a loan, along with 8.1% of white applicants and 10.4% of Asian applicants, according to Zillow’s report.

The growing use of algorithms in financial services can produce results that are positive, negative or simply unpredictable. It’s important to note that 45% of the country’s largest mortgage lenders now offer online or app-based loan origination, as FinTech looks to play a major role in reducing bias in the home lending market.

CREDITS: Kori Hale \ Forbes

The post A.I. Could Be The New Play To Increase Minority Homeownership appeared first on National Association of Real Estate Brokers .

The History, Principles, and Symbols of Kwanzaa

Wed, 01 Jan 2020 18:00:00 GMT

By Signe Knutson

Kwanzaa is a weeklong celebration held in the United States that honors African heritage in African-American culture. Kwanzaa is observed from December 26th to January 1st, and culminates in gift giving and a big feast.

The holiday is relatively new, compared to other holidays celebrated in the U.S. Dr. Maulana Karenga , professor and chairman of Africana Studies at California State University, first created Kwanzaa in 1966. He created this holiday in response to the Watts Riots in Los Angeles in 1965 as a way to bring African-Americans together as a community.

Dr. Karenga researched African harvest celebrations and combined aspects of several different celebrations, such as those of the Ashanti and those of the Zulu, to form the foundation of Kwanzaa. The name Kwanzaa is derived from the phrase matunda ya kwanza which means first fruits, or harvest, in Swahili. Celebrations often include singing and dancing, storytelling, poetry reading, African drumming, and feasting.

Dr. Karenga created seven guiding principles to be discussed during the week of Kwanzaa. The seven principles represent seven values of African culture that help build and reinforce community among African-Americans. Each day a different principle is discussed, and each day a candle is lit on the kinara (candleholder). On the first night, the center black candle is lit, and the principle of umoja , or unity is discussed. On the final day of Kwanzaa, families enjoy an African feast, called karamu .

Kwanzaa has seven core principles, or Nguzo Saba :

1. Umoja: Unity – To strive for and maintain unity in the family, community, nation, and race.

2. Kujichagulia: Self-Determination – To define ourselves, name ourselves, create for ourselves, and speak for ourselves.

3. Ujima: Collective Work and Responsibility – To build and maintain our community together and make our brothers’ and sisters’ problems our problems and solve them together.

4. Ujamaa: Cooperative Economics – To build and maintain our own stores, shops, and other businesses and to profit from them together.

5. Nia: Purpose – To make our collective vocation the building and developing of our community in order to restore our people to their traditional greatness.

6. Kuumba: Creativity – To do always as much as we can, in the way we can, in order to leave our community more beautiful and beneficial than we inherited it.

7. Imani: Faith – To believe with all our heart in our people, our parents, our teachers, our leaders, and the righteousness and victory of our struggle.

Kwanzaa has seven core symbols:

1. Mazao: Crops – Mazao symbolizes the fruits of collective planning and work, and the resulting joy, sharing, unity and thanksgiving part of African harvest festivals. To demonstrate mazao, people place nuts, fruits, and vegetables, representing work, on the mkeka.

2. Mkeka: Place Mat – Just as the crops stand on the mkeka, the present day stands on the past. The mkeka symbolizes the historical and traditional foundation for people to stand on and build their lives.

3. Muhindi: Ear of Corn – The stalk of corn represents fertility and the idea that through children, the future hopes of the family are brought to life. One vibunzi is placed on the mat for every child in the family.

4. Mishumaa Saba: The Seven Candles – Candles are ceremonial objects that serve to symbolically re-create the sun’s power, as well as to provide light. There are three red candles, three green candles, and one black candle that are placed on the kinara.

5. Kinara: The Candleholder – The kinara represents our ancestry, and the original stalk from which we came.

6. Kikombe Cha Umoja: The Unity Cup – On the sixth day of Kwanzaa, the libation ritual is performed to honor the ancestors. Every family member and guest will take a drink together as a sign of unity and remembrance.

7. Zawadi: Gifts – On the seventh day of Kwanzaa, gifts are given to encourage growth, achievement, and success. Handmade gifts are encouraged to promote self-determination, purpose, and creativity.

CREDITS: Signe Knutson \ InterExchange

The post The History, Principles, and Symbols of Kwanzaa appeared first on National Association of Real Estate Brokers .

Conference to address decline of black homeownership

Tue, 17 Dec 2019 18:00:00 GMT

By Buck Wargo

A national organization of real estate professionals is coming to Las Vegas in February to “declare war on the decline of black homeownership” and given the rates in Southern Nevada, it will be the perfect locale to spread that message.

The midwinter conference of the National Association of Real Estate Brokers, the oldest minority trade association in the nation, runs Feb. 8-13 at The Mirage. Some 800 to 1,000 people are expected from throughout the nation, nearly doubling what such conferences normally draw. About 100 local real estate professionals are expected to attend.

Las Vegas Realtor Shanta Patton, a regional vice president with NAREB and the national education chair in charge of setting up the agenda for the February conference, said the theme of the conference has been driven by new NAREB President Donnell Williams, who’s leading the charge to increase black homeownership.

“We’re doing our campaign of sounding the alarm on black homeownership, and we see more conversations happening because we’re putting that positive focus on it,” Patton said. “We’re seeing momentum that we haven’t seen in a while. We’re excited about the progress we’re making on the national level. It’s not near enough where we need it to be, but at least we can see an increase after declining year after year.”

A recent report on Las Vegas prepared by Apartment List showed that black homeownership is below the national average and has a wide gap between other ethnic groups.

The homeownership rate is 62 percent among whites, 54 percent among Hispanics but only 35 percent among blacks, according to the Census data for Las Vegas. Nationally, the homeownership rate is 70 percent for whites and 42 percent for blacks.

Having the conference in Las Vegas will focus local media attention on the issue, Patton said. The plan is to have members of Congress from Nevada participate in the discussion at a legislative luncheon to talk about homeownership among minorities and affordable housing in Las Vegas, she said.

“That will be our chance to bring light to this issue and our challenges,” Patton said. “We can also focus on what we are doing well and what we can do better.”

Patton said she has requested information from Federal Home Loan Mortgage Corp. for data dealing with homeownership rates and plans to talk about strategies going forward to help increase that rate.

“I recently sat on the panel with Henderson Mayor Debra March, and they had a roundtable on affordable housing and what it looks like for minorities,” Patton said. “I see more and more of our public officials being open to the conversation than they have ever been before. It’s a great opportunity for NAREB to get out there and educate our public officials on the need for affordable housing and the need to increase black homeownership and minority homeownership in general. We want to advocate for them and sound the alarm.”

Patton said a big part of the NAREB mission to help boost those numbers is pushing for an increase in homeownership rates among black millennials. A recent report by Apartment List said the black homeownership rate for millennials — 23 to 38 — is 28 percent in Las Vegas compared with 21 percent nationally.

NAREB produces an annual report called the State of Housing in Black America, which says there are 1.7 million mortgage-ready black millennials that are making more than $100,000 a year, but they’re still renting, Patton said.

“The president’s initiative is for millennials to purchase a home instead of a car first,” Patton said. “That’s typically the issue when it comes to qualification. Some of them have car payments upward of $800 or $900 a month.”

As for Las Vegas, Patton said more needs to be done here on educating millennials on financial literacy and the importance of homeownership. Many saw what their parents went through with the financial crisis, and that affected the whole family.

“Now, those children are adults and they stay away from the concept,” Patton said. “They want a simpler life and to them they can rent luxury apartments with all the amenities without any additional responsibilities. They don’t see the importance of homeownership, but only the bad of it with their parents. You have to focus on financial literacy and the importance of homeownership and why it makes more sense than renting and building generational wealth and equity.”

Patton said they’ve already made an impact by holding community wealth-building days dealing with literacy and credit reports and how to improve them.

“Locally, we’ve focused a lot on how to make that work,” Patton said. “We have done faith-based initiatives where we have gone into churches and teach the attendees on the importance of homeownership.”

The issue has come to greater focus, locally. The Review-Journal real estate section recently wrote about the gap in homeownership rates, and Patton said it’s not surprising the numbers are so low for Las Vegas.

“When you look at the gap between a non-minority homeowner and minority homeowners, it’s really sad,” Patton said. “But we have to remember it’s always been a big gap. Because of predatory lending, a lot of African-Americans lost their homeownership during the decline in the recession and have not been able to get that back.”

Mosi Gatling, president of the Las Vegas chapter of NAREB, said she has disseminated the article to partners and homebuilders and said many weren’t aware that there’s such a discrepancy over black homeownership.

“They’ve had no clue of the racial component,” Gatling said. “People have avoided the race breakdown and whether our local demographics have changed. People were enlightened to see those stats. It’s a big disparity, and now there’s something for us at NAREB to grab and develop a program at the state level to work on that.”

One option is giving people easier access to qualify for state down payment assistance programs, Gatling said.

Patton said that for African-Americans, purchasing a home is an emotional experience and a huge accomplishment as part of achieving the American dream. To have lost their home, it was more than a bad investment, she said.

“It was life-altering and because of that a lot of black homeowners don’t want to do that again,” Patton said. “One of the things we struggle with is trying to deal with the chance of it happening again. Until we deal with that, it will be difficult to show the importance to millennials and their children. It’s a process, and it starts with education.”

While Patton said it’s harder for lenders to put buyers in bad loans today given changes in practices, many lenders are unwilling to participate in down payment assistance programs. That’s vital because minority buyers have the opportunity to purchase, but they may not have the five, 10 or 20 percent down, she said.

“I think a lot of loan officers are not educating the buyers on the down payment assistance opportunities that we have here because they get paid less,” Patton said.

Early registration costs through Jan. 2 are $299 for NAREB members and $399 for non-members. The prices escalate as the conference approaches. For more information, visit events.eply.com/Mid-Winter-Conference-2020.

“The conference focuses on advocacy but training agents to function in today’s market and how to state competitive,” Patton said. “I hope Realtors will level up business and focus on customer experience and learning how to keep the customer relations but be powered by technology.”

CREDIT: Buck Wargo \ Las Vegas Review-Journal

The post Conference to address decline of black homeownership appeared first on National Association of Real Estate Brokers .

Op-Ed: Fair Housing Still Matters From Harlem To Hollywood

Tue, 17 Dec 2019 17:04:00 GMT

By Donnell Williams

Let me begin by stating that the National Association of Real Estate Brokers’ (NAREB) founding mission, written nearly 73 years ago, was based upon the principles of fairness and equal opportunity. Fair housing, fair lending, and fairness in our profession are the pillars of our association’s beginnings and the reason for our presence. More to the point, NAREB has always been vigilant utilizing the legislative, legal, and advocacy tools necessary to ensure that Black Americans receive equal treatment under the law, and equal opportunity in our profession.

Media coverage on fair housing ebbs and flows, but NAREB’s warrior spirit continuously battles the public and private forces inhibiting or flatly denying fair access to homeownership opportunities for Black Americans. Yes, victories have been celebrated, and less than perfect legislation or regulatory changes unfalteringly challenged. At every turn, NAREB returns to the fight making every effort to eliminate unbiased treatment of our constituency and our professionals.

Recently, the NEWSDAY newspaper released the results of a three-year investigation that exposed undeniable racially discriminatory experiences leveled against prospective Black American homebuyers by agents servicing clients in the Long Island, NY real estate market. Steering minority clients to select communities that agents believed were more acceptable was a commonplace practice the investigation found.

As the newspaper’s editorial board wrote, “It is no longer 1949; explicit racism in real estate is no longer legal. But the Newsday investigation makes clear that the changes in the rules are greater than the changes in reality. Real estate agents will shake the hands of black buyers, and show them around, but those buyers are still being treated as second-class citizens because of the color of their skin…Americans would find it unfathomable if schools or water fountains were labeled ‘White Only,’ as was commonplace across the South just several decades ago. They would be kidding themselves to think this kind of discrimination in housing, without the labels, is any less pernicious.”

Discriminatory practices, sadly, continue and bad actors are still with us. But, so is NAREB’s watchfulness. Advocacy efforts, legislative remedies, or legal challenges are employed where necessary to stomp down bias wherever it exists. We believe that mandatory annual training on fair housing practices should be included as a requirement of licensing and continued on an annual basis. We also agree, and will advocate for stiffer penalties for real estate agents found perpetrating illegal discriminatory practices.

We must never forget how far down the road we have come. Rampant discriminatory practices like those uncovered in Long Island, NY are not uncommon nor isolated to just those communities. We still have work to do and we intend to remain vigilant by calling out bias when we see it. At the same time, we stand ready to work with other champions for justice, fairness and equality to eradicate biased behaviors and practices.

CREDITS: Donnell Williams, NAREB President \ Harlem World Magazine

The post Op-Ed: Fair Housing Still Matters From Harlem To Hollywood appeared first on National Association of Real Estate Brokers .

Inspired by Nipsey Hussle, they’re trying to ‘buy back’ South LA

Mon, 16 Dec 2019 15:21:00 GMT

Residents are meeting up each month to learn about buying property as a way to build generational wealth

By Jessica Flores | @jesssmflores

For Daniel Carter, the strip mall where Nipsey Hussle was killed in March, is one of the most important places in South LA.

The late rapper was a South LA champion who invested in his community, in part by purchasing that shopping center at Crenshaw Boulevard and Slauson Avenue.

Hussle’s death “left a huge scar in the community,” says Carter, 35, a music business manager and real estate investor. “I felt like at one point his spirit kind of burst into a million pieces and everybody got a little piece… I feel like our piece of it was this real estate thing.”

After Hussle died, Carter launched Buy Back The Block L.A., a monthly meet up to educate South LA residents on how to fight gentrification by buying property in their neighborhoods.

Arlen Escarpeta, an actor and Inglewood native, is in the process of being pre-qualified to buy a home in Inglewood . He’s getting help from a broker he met from the group.

“I don’t know if I would be so much in the know of how and what’s going on [in real estate],” says Escarpeta, 38. “It would probably feel a lot more daunting if I didn’t have the education and the things that I’ve learned from the group.”

About 30 people gather each month in The Metaphor Club, a black-owned co-working space along Crenshaw Boulevard, across from Leimert Park Village. At each meet-up, Carter goes over real estate terms and definitions, offers advice on how to raise your credit score, and imparts the importance of buying homes in the neighborhood.

”We’re anti-gentrification, and we’re unapologetic about it,” he says. “We don’t want to see people who grew up in these neighborhoods get pushed out. This is our neighborhood. This is our culture. These are our streets.”

At a meeting in December, guest speaker Carlden Lainfiesta, a loan officer, highlighted a couple of programs that help qualifying homebuyers with down payments and closing costs.

In a county where the typical home costs $620,000 , and where the majority of households rent, not own, those programs can be invaluable—especially for people of color, who, for decades, were locked out of homeownership .

The national rate of black homeownership is the lowest of any minority group, says Ashley Thomas III, an executive with the National Association of Real Estate Brokers, which is working to increase the number of black Americans who buy homes.

Thomas says he has seen more grassroots groups like Buy Back the Block L.A. pop up throughout the country, usually led by religious groups and musicians and actors.

“More people are trying to influence their family, and then their community, so you’re gonna see a lot of groups [like Buy Back the Block L.A], which is great,” he says.

Last year marked the 50-year anniversary of the Fair Housing Act , and Thomas says it opened up a lot of people’s eyes, because “we’re still at the same ownership rate in the black community that we were 50 years ago.”

The homeownership rate in Los Angeles is one of the lowest in the nation, with more than 64 percent of households renting, according to a 2018 Zillow report.

Black homeownership, in particular, has significantly dropped over the years nationwide.

Recent census data shows the national black homeownership rate at 40.6 percent in the second quarter, hitting its lowest point on record.

Gary Painter, director of the USC Sol Price Center for Social Innovation, says black homeownership rates in South LA are particularly low because of old discriminatory lending practices and racist housing policies.

In the early 20th century, it was common for developers and homeowner associations to require white homeowners to sign deeds that contained covenants promising to never sell to African Americans .

The area around Central Avenue, a street cutting through South LA, was one of the few places in the city where black people were allowed to buy property. But the government-sponsored Home Owners’ Loan Corporation deemed non-white neighborhoods “risky,” and its redlining maps not only discouraged and prevented community investments but made it difficult, if not impossible, for people of color to obtain home loans.

South LA resident Danielle Jakes says she knew nothing about real estate before joining the group.

“I love that everything [Carter] has learned, he brings back to us,” Jakes, 35, says. “So when we go out and hear different terms, we’ll know what they’re talking about.”

Jakes is part of a smaller group from Buy Back The Block L.A. who pooled their money to buy properties in Indiana. It’ll be her first time buying property. Eventually, she says, she wants to own a home for herself in South LA, where she lives near the intersection of Slauson and Western Avenue, but she’s still learning the ropes.

Jakes knew Hussle from their high school days at Hamilton High School. She says Buy Back The Block L.A. is more than just a group; they’re continuing Hussle’s legacy.

”We’re coming together and helping each other out just as Ermias [Hussle] did,” she says.

Carter says he chose Indiana because he already owns property in the state. He bought his first home in Palmdale, where he spent most of his childhood, and currently rents in Jefferson Park .

He says he hasn’t bought a home in South LA yet, because of how expensive it is.

“Going out of state where you can buy five houses for the price of one in LA gives you a chance to get in the game and start stacking your paper,” says Carter.

Carter owns 11 rental units in Indiana that he says he rents to tenants with Section 8 vouchers.

“I buy my houses in the hood, because I don’t mind owning in the hood,” he says. “I’m not necessarily flipping them, I’m buying them, and I’m holding them.”

“The negative side of flipping is when somebody comes in to our neighborhoods, you know, like what’s happening here in Echo Park, where these people who don’t grow up around here coming in flipping houses and raising the prices,” Carter says.

Jerome Wiley, a sixth grade educator, owns property in Los Angeles and Tennessee. He heard about Carter’s group through a friend and says that the idea of “investing with like-minded people who look like me drew my attention.”

“ I’m glad to see that there’s a broad age group—some younger people and people like myself,” says Wiley, 56. “We’re working together to achieve a goal to increase family wealth.”

Escarpeta agrees. He wants to give back to his community and family by teaching them that real estate can be one way to build and sustain wealth, without having to leave their neighborhood.

“What I don’t want to do is get to a point where I can’t afford to live in a place that I call home,” he says.

CREDITS: Jessica Flores \ @jesssmflores \ Curbed LA

The post Inspired by Nipsey Hussle, they’re trying to ‘buy back’ South LA appeared first on National Association of Real Estate Brokers .

Although Jobs Report Shows Robust Job Market, African Americans Still Face Discrimination

Wed, 11 Dec 2019 17:00:00 GMT

By Derek T.Dingle

The prognosticators were wrong. Forecasts from ADP and Moody’s Analytics early last week revealed that the job market was slowing due to a private payrolls report showing a gain of just 67,000 jobs for the month of November. According to Friday’s report from the US Department of Labor, however, the job market continues to be robust, citing a boost in nonfarm payrolls by 266,000. As such, the overall unemployment rate has declined to 3.5% — the lowest point since 1969.

As for the African American unemployment rate , it currently stands at 5.5%, close to the all-time low for the decade. But when compared to the 3.2% unemployment rate for whites, African American unemployment is still is at a rate that is 72% greater than that of whites.

Overall, employment figures show the biggest gain since January and that far exceed the predictions of another survey estimate of an increase of 180,000 jobs, according to Bloomberg . One question was answered, though: The jobs numbers have been significantly impacted by the fact that November represented the first full month that GM workers had returned to work after a 40-day strike , making up for the previous month’s decline by some 41,000.

“Job growth for most of 2019, while volatile, tells a consistent message. Although census hiring and ending of the auto strike affected this month’s figure,” tweeted Harin Contractor, former Economic Policy Advisor to the US Secretary of Labor during the Obama administration and current Program Manager for Silver Spring, Maryland-based business consulting firm Nexight Group L.L.C.

Contractor, who has provided monthly analysis of the state of black employment when he served as director of Workforce Policy at the Joint Center for Political and Economic Studies , shared that the drivers of job growth continue to be education and health services, a trend that has marked much of 2019. “Depending on what happened next month, job growth in 2019 is fairly consistent with previous years. We hope this will lead to greater wage growth in the near future,” he tweeted.

Civil rights advocates and researchers alike cite that although the African American employment rate is at a historic low, that figure does not accurately reflect the full picture related to African Americans’ economic status. As reported by Black Enterprise on Thursday, the Center for American Progress revealed African Americans — especially black women —must face an ongoing, systemic pattern of “outright discrimination” and “occupational segregation” in the labor market.

In reviewing the black employment situation throughout much of 2019, National Urban League President Marc Morial has told CNBC earlier this year “Let’s look at this in context, not look at one number and say, ‘OK, good. Let’s celebrate,” especially since the racial wealth gap continues to persist. For example, the latest US Census Bureau figures on black homeownership were 42.1% compared with 72.7% among whites. Morial and others have cautioned against looking at the unemployment rate and concluding that it reflects the overall economic and financial health of African Americans.

Moreover, the Joint Center has conducted studies on racial equality and the future of work in recent years. The organization has found that African Americans — especially in blue-collar positions — tend to be at a huge disadvantage due to increased automation of service-based industries. Its 2017 report on this trend revealed that 27% of all African American workers are concentrated in just 30 occupations at high risk to automation . including positions in brick-and-mortar retail, eateries and transportation. For example, compared to white workers, African Americans are more than one-and-a-half times more likely to be cashiers and combined food preparation and serving workers as well as over three times more likely to be security guards, bus drivers, taxi drivers and chauffeurs Historycznie rzecz biorąc, hazard jest prawie tak stary jak sama ludzkość. Pierwsze dowody na istnienie hazardu sięgają 3000 r. p.n.e., w postaci gier w kości. Jeśli skierujemy swój wzrok nieco bardziej w stronę teraźniejszości, to oczywiście hazard i kasyna online na http://topkasynoonline.com/ bardzo się zmienił i rozwinął. Możliwości hazardu są wielorakie, ale są silnie zdeterminowane przez przepisy prawne danego kraju. Jak rozwinął się hazard w Polsce i jak wygląda obecna sytuacja prawna?

The Joint Center reports that unique challenges that make African Americans “particularly vulnerable in labor market transitions include unemployment rates that are twice as high as whites, Implicit bias in hiring and evaluation, residential and educational segregation, transportation problems, lower rates of digital readiness and limitations in social networks.”

—

Credits: Derek T. Dingle \ Black Enterprise

The post Although Jobs Report Shows Robust Job Market, African Americans Still Face Discrimination appeared first on National Association of Real Estate Brokers .

FHA’s strong financial showing points the way on policy

Wed, 04 Dec 2019 16:10:00 GMT

By Anthony Kellum

Last month HUD published its annual FHA Actuarial Report. The report shows extremely strong financial performance — with reserves against losses of $62 billion and an economic net worth-capital ratio of 4.84% for the overall portfolio. The FHA’s capital ratio is the highest since 2007 and almost two and a half times the FHA’s statutory capital requirement.

This reflects the solid job the FHA is doing in meeting its dual statutory requirements to facilitate access to mortgage credit for first-time homebuyers, underserved and minority borrowers, while protecting taxpayers through prudential financial management.

During the 2008 financial crisis, when private capital all but disappeared from the mortgage market, the FHA continued insuring loans to qualified homebuyers, stabilizing the housing market.

Doing so stressed FHA insurance reserves. However, prudent program management — including significant premium hikes to balance the increased risk of loss from market uncertainty — allowed the FHA to ensure a steady flow of mortgage financing at the same time Fannie and Freddie fell into conservatorship and the Federal Reserve Banks and Treasury advanced trillions to save banks, AIG and others.

The economic rebound and related home appreciation have pushed FHA reserves to record levels — culminating in last week’s strong actuarial report. The FHA’s financial metrics — measured by historically low default and foreclosure rates and relatively high average FICO scores — are also very strong.

So where do we go next? The Community Home Lenders Association, anticipating a strong actuarial report, recently wrote a letter to FHA suggesting the proper course and responding to the administration’s recent housing finance plan.

The CHLA’s letter cited its support of FHA managerial improvements outlined in the plan, including more flexible pay scales for the FHA, modernizing IT, and better aligning servicer penalties for errors with their financial impact. The CHLA also expressed concern about certain loan types such as down payment assistance programs and PACE loans.

However, the CHLA letter forcefully pushed back against proposals in the plan to: (1) limit FHA loans to borrowers not served by conventional underwriting, (2) eliminate FHA loans for repeat borrowers and for conventional to FHA refinances and (3) reduce availability of cash-out refis.

The second obvious conclusion from the Actuarial Report is the FHA needs to continue the process it started in 2015 to terminate temporary premium increases put in place to shore up the FHA fund during the Great Recession. Reversal of the 2013 policy change to require mortgage insurance for the life of the loan should be the next step in this process.

Current life of loan premiums significantly overcharge FHA borrowers — largely low- and moderate-, minority and first-time homebuyers — who, by the time they reach the 78% LTV threshold, have already paid around 10% of the loan amount in premiums. The life of loan policy also accelerates Ginnie Mae prepayment speeds — a source of concern to that agency, reducing the prices of Ginnie securities that ensure borrowers receive affordable interest rates.

Some argue we can’t afford to lose the revenue from eliminating life of loan insurance. We heard the same type of argument four years ago when many groups argued against a premium cut; yet the FHA insurance fund continues to get stronger.

Based on observations of the borrowers Kellum Mortgage and other CHLA members serve, we believe the life of loan policy could actually reduce FHA revenue, because borrowers refinance into conventional mortgages as soon as they can, knowing they pay 30 years of premiums under the FHA. This causes the FHA to lose premiums from these borrowers.

Influential organizations spanning the political spectrum — including the National Association of Realtors, the National Association of Real Estate Brokers, the National Association of Hispanic Real Estate Professionals, the National Community Reinvestment Coalition, the National Housing Conference and the National Consumer Law Center — support the effort to end life of loan premiums. Now, with the Actuarial Report in hand, it is time for the FHA to act to end this policy.

Given the critical access to credit role the FHA plays today, and in light of its strong financial performance, now is not the time to “reduce the FHA’s footprint.” My firm deals with working-class families all the time, and I can attest that FHA underwriting standards are still prudent when applied properly and the FHA is sorely needed in the marketplace.

The FHA’s core mission is to provide affordable mortgage credit to borrowers not served by traditional underwriting — not to deny families affordable mortgage credit to entice the private market to do so. As the FHA program has proven highly profitable, clearly something other than profits is keeping the private market from offering alternatives to the FHA program. We should figure that out before limiting hard-working families’ ability to own homes.

The FHA has played a critical role in providing access to credit without taxpayer risk. Let’s keep it strong and effective.

Credits: Anthony Kellum \ National Mortgage News

The post FHA’s strong financial showing points the way on policy appeared first on National Association of Real Estate Brokers .

8 Reasons to Buy a Home

Tue, 03 Dec 2019 12:00:00 GMT

By Elizabeth Weintraub

If you’re like most first-time home buyers, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home . However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.

#1. Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn your music up, attach permanent fixtures, and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

#2. Appreciation

The post 8 Reasons to Buy a Home appeared first on National Association of Real Estate Brokers .

What Happens When Black People Search for Suburban Homes

Wed, 27 Nov 2019 18:39:00 GMT

By Luis Ferré-Sadurní

An undercover investigation on Long Island found that real estate agents treated people of color unequally 40 percent of the time.

One Long Island real estate agent told a black man that houses in a predominantly white neighborhood were too expensive for his budget. But the same agent showed houses in the same neighborhood to a white man with the same amount of money to spend.

Another real estate agent warned a white home buyer about gang violence in a mostly minority neighborhood, but she appeared to steer a black buyer with a comparable budget toward homes in that neighborhood.

All told, real estate agents treated people of color unequally 40 percent of the time compared with white people when they searched for homes on Long Island, one of the most racially segregated suburbs in the United States.

Those were among the findings of a three-year undercover investigation published this past weekend by Newsday, a Long Island newspaper, which exposed widespread evidence that discriminatory, and potentially illegal, home-selling practices are helping to keep the area’s neighborhoods segregated.

Newsday did the sort of undercover testing that government agencies and nonprofit groups are supposed to do to enforce fair-housing regulations meant to prevent disparate treatment based on racial and other factors.

The newspaper recruited a diverse group of people, some of them actors, to pose as first-time home buyers, outfitting them with hidden cameras to capture their interactions with real estate agents. It is legal in New York to record a conversation or phone call if the person making the recording is a party to the conversation.

Over 16 months, the would-be home buyers conducted about 100 tests. They got help from housing experts and recorded 240 hours of video that the newspaper turned into a 13-article series and a 40-minute documentary. More than 50 reporters, producers, editors and other Newsday employees worked on the project.

The newspaper contacted 93 real estate agents at some of the area’s biggest firms. Two testers — of different races, but of the same gender and about the same age, with similar income and housing preferences — would independently approach the same agent to test whether they were treated differently based on their race.

The results were startling, even though Long Island is a part of New York where redlining, zoning regulations and other forces have long perpetuated racial divides.

“Black testers experienced disparate treatment 49 percent of the time — compared with 39 percent for Hispanic and 19 percent for Asian testers,” Newsday reported.

In some cases, agents did not show listings to black testers if they had not been preapproved for a mortgage. The same agents would accommodate white testers who did not meet that condition.

The federal fair-housing law, passed in 1968 as part of the Civil Rights Act, prohibits discrimination in housing based on race, religion and other factors.

The Department of Housing and Urban Development is responsible for enforcing the law, mostly through its regional offices and through grants to nonprofits to investigate complaints, conduct tests and educate buyers and renters.

In New York, state agencies also enforce the law, with the state’s 133,000 licensed real estate brokers and agents responsible for abiding by fair-housing standards.

Credits: Luis Ferré-Sadurní / The New York Times

The post What Happens When Black People Search for Suburban Homes appeared first on National Association of Real Estate Brokers .

Why Owning a Home Is Important

Wed, 27 Nov 2019 16:52:00 GMT

By Mike Grundon

Owning a home is more than just hype; it’s the gateway to long-term and short-term financial success. Long-term, you’ll build an equity nest egg and short-term, you’ll be able to enjoy potential tax breaks and pay yourself instead of a landlord. A home purchase is an investment you’ll be glad you made!

Owning a home can make a huge difference for your financial future, especially for a first-time homebuyer. While buying a home can be a transformative experience for you personally, homeownership can help you financially as well. Homeownership can lead to building your personal wealth due to home equity, or fair market value, which will likely increase over time based on both the market and any renovations you make to your home.

San Diego is one of the top ten cities in the country that millennials are moving to. It is a particularly great place to buy a home because of its warm weather climate, proximity to the ocean and large, thriving industries, including a strong biotech presence and several large universities. Couple that with a bevy of fun and eclectic neighborhoods with wonderful restaurant and activity options, and it’s easy to see why you would choose to purchase a home in San Diego.

Renting in San Diego, on the other hand, can be expensive, and there are few options available. There is a lower vacancy rate in San Diego apartments than the national average and rents are rising faster than wages. This combination creates a difficult market for renters because the high demand and limited supply of rentals available drive up costs. If you can afford to buy a home, turning the cash that you would be spending on rent into payments on a mortgage can make a major difference in your long-term financial stability.

There are many reasons owning a home is important, and most of them stem from the fact that a home is an asset and paying a mortgage increases your equity in that asset, which is better than paying rent. A potential increase in your credit score, tax benefits and anticipated growth in the housing market are additional benefits to having a mortgage.

Having a mortgage can help improve your credit score because a home loan adds diversity to your credit profile. Even though a mortgage is a debt, it is “good” debt, because it is tied to an asset (the house). The largest portion of your credit score is determined by your payment history, and making payments on a long-term loan like a mortgage positively contributes to your payment history. As long as you make your payments on time, your mortgage can improve your credit score by increasing your reputation as a responsible borrower.

Owning a home that you can afford carries tax benefits, too. The IRS allows you to deduct the interest on your mortgage from your income taxes, as well as some closing costs and annual property taxes. Tax incentives like these help homeowners build wealth.

The house that you buy is an asset that can go up in value over time. San Diego has long been an attractive real estate market because of geographical advantages like good weather, scenic beaches and its status as a port city. Because it features the second largest millennial population per capita in the United States’ major cities, San Diego is poised to continue to grow. San Diego’s strong business presence, young population and desirable location have strongly factored into San Diego’s home values, which continue to be on the rise.

Buying a house requires planning, including finding out how much house you can afford, what type of loans are available and what the fees are. Mission Fed’s first-time homebuyer infographic can shed some light on what you need to do to purchase a home. Our handy Home Loan Calculator can help you figure out what you can afford by calculating monthly payments based on loan amounts, interest rates and points. You can use our Down Payment Calculator to estimate how much you should put down on your loan upfront or to calculate the amount of interest you can expect to pay over the life of your loan based on your down payment.

Homeownership is a journey that requires a lot of information and support, and Mission Fed is happy to provide both. Once you feel ready to apply for a mortgage, you can use our fast and easy online application to start the process of getting a Mortgage Loan . And once you click “send,” you’ll be minutes away from beginning the exciting transition from home renter to homeowner!

—

Credits: Mike Grundon | Mission Federal Credit Union

The post Why Owning a Home Is Important appeared first on National Association of Real Estate Brokers .

Against Black Homeownership

Mon, 25 Nov 2019 15:54:00 GMT

By Keeanga-Yamahtta Taylor

The real estate market is so structured by race that black families will never come out ahead.

In January 1973, George Romney, Nixon’s enigmatic Secretary of Housing and Urban Development, administered an open-ended moratorium on its 1968 initiatives to open up single-family homeownership to low-income borrowers by providing government-backed mortgages. The experiment to make homeownership accessible to everyone ended abruptly with massive foreclosures and abandoned houses, but the questions ignited by these policies persisted. Some analysts insisted that the failure of HUD’s homeownership programs was proof positive that poor people were ill equipped for the responsibilities of homeownership. And they insisted that it more specifically implicated low-income African Americans as “incapable” homeowners. Others pointed to HUD’s obvious mismanagement of these programs as the real culprit in their demise, and, importantly, how the programs gave an industry already known for its racial bias new opportunities to exploit low-income African-Americans. But the lessons from HUD’s experiment were muddled by other economic sensibilities, including the commitment to private property and the centrality of homeownership to the American economy.

Today, homeownership, even for low-income and poor people, is reflexively advised as a way to emerge from poverty, develop assets, and build wealth more generally. The historic levels of wealth inequality that continue to distinguish African Americans from whites are powerful reminders of how the exclusion of Blacks from this asset has generationally impaired Black families in comparison with their white peers. Owning a home as a way to build wealth is touted as an advantage over public or government-sponsored housing. It grounds the assumption that it is better to own than rent. And the greatest assumption of all is that homeownership is the superior way to live in the United States. This, of course, is tied to another indelible truth that homeownership is a central cog in the U.S. economy. Its pivotal role as an economic barometer and motor means that there are endless attempts to make it more accessible to ever-wider groups of people. While these are certainly statements of fact, they should not be confused as statements on the advisability of suturing economic well-being to a privately owned asset in a society where the value of that asset will be weighed by the race or ethnicity of whoever possesses it.

The assumption that a mere reversal of exclusion to inclusion would upend decades of institutional discrimination underestimated the investments in the economy organized around race and property. The concept of race and especially racial inferiority helped to establish the “economic floor” in the housing market. One’s proximity to African Americans individually, as well as to their communities, helped to determine the value of one’s property. This revealed another reality. Markets, as in the means by which the exchange of commodities is facilitated, do not exist in vacuums, nor do abstract notions of “supply and demand” dictate their function. Markets are conceived and constituted by desire, imagination, and social aspirations, among other malleable factors. This does not mean that markets are not real, but that they are not shaped by need alone. They are shaped by political, social, economic, and in the case of housing, racial concerns. And in the United States, these market conditions were shaped and stoked by economic actors that stood to gain by curtailing access to one portion of the market while then flooding another with credit, capital, and indiscriminate access to distressed and substandard homes.

HUD’s crisis in its homeownership programs in the 1970s reveal deeper and more systemic problems with the pursuit of homeownership as a way to improve the quality of one’s life. It is undeniable that homeownership in the United States has been “one of the important ways in which Americans have traditionally acquired financial capital” and that the “tax advantages, the accumulation of equity, and the increased value of real estate property enable homeowners to build economic assets. . . . These assets can be used to educate one’s children, to take advantage of business opportunities, to meet financial emergencies, and to provide for retirement.” Investment in homeownership, and its role in the process of the personal accumulation of capital, has been fundamental to the good life in the United States.

The benefits of owning a home, however, have been experienced unevenly. The diminished access of African Americans to homeownership has been identified as a significant “consequence” of Black inequality. A national report on housing said as much: “The majority of nonwhite families are deprived of [these] advantage[s].” The disparity is clear when 70 percent of whites own a home, compared with 43 percent of African Americans. Lucky Jet – This online game is rapidly gaining popularity. You can read the review by clicking here . Lucky Jet has become a hit in several major casinos. Every day more and more players are discovering this game all over the world. Why are more and more players choosing Lucky Jet? Because the game is exciting, playable and the probability of winning is high. But the source of inequality is not just in the difference between the numbers of African Americans and whites who own homes. Even when African Americans do own their own homes, they experience the supposed benefits differently in comparison with white homeowners.

The conflation of race and risk to property value has been fully absorbed into the popular culture and real estate acumen of the United States. Enduring racist assumptions about Black hygiene and moral fitness overlapped with the obsession of white property owners in protecting their investments. Their defense of private property, including the cultural cues that came along with it, inspired the maniacal reaction to the possibility of Black neighbors. When NAREB established career-ending penalties for violating the organization’s commitment to racial segregation as early as 1924, the symbiosis of racial prerogative and value and its diffusion through the real estate market was legitimized and then replicated. The implications of this practice were hardly abstract; the property of Blacks and the communities their property was clustered in assumed a permanently subordinate position. As a result, to this present moment, homes owned by African Americans are worth less than homes owned by white people. Black-majority neighborhoods are still viewed less favorably than white-majority neighborhoods. Indeed, the distance from Black communities continues to factor into the superior value of the white neighborhood. This market fact segregates African Americans into deteriorating urban neighborhoods while simultaneously denying those communities access to resources that could be used toward development created an economic disadvantage for Black people that has been impossible to overcome.

The assumed threat of property damage and devaluation turned into reality on account of the distressed conditions of Black neighborhoods caused by decades of policy neglect, real estate exploitation, job erosion, and the outflux of industry and tax dollars. Residential segregation and lower incomes have meant that African Americans rely disproportionately on older used housing. As a consequence, their homes are not always appreciating assets. Even when values rise, their properties do not appreciate at the same pace as those of white families in exclusive white neighborhoods. Higher rates of unemployment, underemployment, and poverty among African Americans curtailed access to the housing market while simultaneously increasing their vulnerability to losing their homes through either eviction or foreclosure. Thus, African Americans experience homeownership in ways that rarely produce the financial benefits typically enjoyed by middle-class white Americans.

Discriminatory differentials were embedded in the U.S. housing market based on a combination of historical and continuing practices within the real estate, housing, and banking industries—abetted by the failure of the federal government, in any historical period, to enact rigorous regulatory compliance with civil rights laws. The dictates of the market have been impossible to surmount when housing is a commodity and thus malleable to the social desires and expectations of a public molded by racial consciousness. This reality is even more pronounced when the industries connected to housing have consistently made race a factor in market imperatives. Racial difference and antipathy are not unintended consequences of the market; they helped to constitute it.

Under these conditions, how could saddling poor and working-class African Americans with thousands of dollars of debt in the form of mortgages while they are still confined to the old and used portion of the housing market realistically be seen as a means of getting out of poverty? Not only did these houses not accrue in value, but they eventually, and in some cases very quickly, became a burden of debt that extracted rather than increased value from their owners. Even when the terms were created to make homeownership possible for poor and working-class Black people, this did not change the fact that those homes and the neighborhoods Black people resided in were valued differently. These differentials in value are inherent in a housing market fully actualized by racial discrimination.

The quality of life in U.S. society depends on the personal accumulation of wealth, and homeownership is the single largest investment that most families make to accrue this wealth. But when the housing market is fully formed by racial discrimination, there is deep, abiding inequality. There has not been an instance in the last 100 years when the housing market has operated fairly, without racial discrimination. From racial zoning to restricted covenants to LICs to FHA-backed mortgages to the subprime mortgage loan, the U.S. housing industry has sought to exploit and financially benefit from the public perceptions of racial difference. This has meant that even when no discernable discrimination is detected, the fact that Black communities and neighborhoods are perceived as inferior means that African Americans must rely on an inherently devalued “asset” for maintenance of their quality of life. This has created a permanent disadvantage. And when homeownership is promoted as a key to economic freedom and advancement, this economic inequality is reinforced, legitimized, and ultimately accepted.

The regular promotion of homeownership as a means to overcome poverty or as a method of building wealth in our society has been built on a mistaken assumption that all people enter the housing market on an equal basis or that the housing market itself is a neutral arbiter of value. The promotion of homeownership by the state is not only an acceptance of these market dynamics; it is also an abdication of responsibility for the equitable provision of resources that attend to the racial deficit created by the inequality embedded in homeownership. This may seem like a political impossibility in an ongoing atmosphere where public services and institutions are undermined, but it is no more impossible than the magical belief that homeownership will ever be a cornerstone of political, social, and economic freedom for African Americans.

After all, even if there had been no nefarious acts, such as preying upon those desperate for shelter, the racial infrastructure of the housing market still placed African Americans at a disadvantage. These disadvantages continue to play themselves out in the contemporary moment, as Black and white wealth disparities remain entrenched because of their deep roots in a systemically racist and unequal housing market. Even if there is no scandal or controversy, white homes are consistently valued more than Black homes. White neighborhoods are seen as desirable destinations in ways that African American communities are almost never viewed. The historic disinvestment in and physical scarring of Black communities as a result continue to provide the pretexts necessary to finance Black homes differently, including charging higher rates of interest and more fees for lending in those communities. The involvement of public institutions in these private practices that are contingent on racial practices is a recipe for continued inequality, compromised inclusion, and unfair outcomes.

For more than fifty years now, the private sector has been viewed as most capable of ending the persisting urban housing crises. And yet those crises have become even starker over time, creating even greater degrees of housing precariousness. This is especially true in the realm of homeownership. The acceleration of subprime lending in the atmosphere of deregulation in the late 1990s and the early 2000s resulted in unprecedented home losses for African Americans. The practice of subprime lending was contingent on racial practices and assumptions across the housing industry and among the general public. The cascade of foreclosures and mortgage defaults further eroded the value of properties in Black communities, once again, hollowing out the notion of homes as assets for African Americans. The net loss of more than 240,000 homes for African Americans has created the pretext for mortgage lenders to, once again, engage in exclusionary practices that marginalize potential Black homeowners. But this is only one aspect of the crisis. The recurring perception of “risky” Black buyers has opened pathways for the reemergence of naked, predatory practices in the real estate market. From rent-to-own schemes to the reappearance of LICs in lieu of conventional mortgages, real estate continues to pilfer African Americans in search of their American dream in the housing market. It is not history repeating itself. It is the predictable outcome when the home is a commodity and it continues to be promoted as the fulfilment and meaning of citizenship.

Credits: Keeanga-Yamahtta Taylor \ Boston Review

The post Against Black Homeownership appeared first on National Association of Real Estate Brokers .

Long Island Divided: An Investigation by Newsday

Tue, 19 Nov 2019 14:53:00 GMT

After a 3-year investigation with over 90 real estate agents tested, over 200 hours of meetings recorded, and over 5700 house listings analyzed, the Newsday investigation uncovered widespread evidence of unequal treatment by real estate agents on long island: 19% of the time against Asians, 39% against Hispanics and 49% against Blacks.

In one of the most concentrated investigations of discrimination by real estate agents in the half century since enactment of America’s landmark fair housing law, Newsday found evidence of widespread separate and unequal treatment of minority potential homebuyers and minority communities on Long Island.

The three-year probe strongly indicates that house hunting in one of the nation’s most segregated suburbs poses substantial risks of discrimination, with black buyers chancing disadvantages almost half the time they enlist brokers.

Additionally, the investigation reveals that Long Island’s dominant residential brokering firms help solidify racial separations. They frequently directed white customers toward areas with the highest white representations and minority buyers to more integrated neighborhoods.

They also avoided business in communities with overwhelmingly minority populations.

The findings are the product of a paired-testing effort comparable on a local scale to once-a-decade testing performed by the federal government in measuring the extent of racial discrimination in housing nationwide.

Read Full Report

The post Long Island Divided: An Investigation by Newsday appeared first on National Association of Real Estate Brokers .

FHA capital level is the highest since 2007

Fri, 15 Nov 2019 00:09:00 GMT

By Kathleen Howley

Montgomery on cutting life-of-loan policy: “We’re not there yet”

The Federal Housing Administration’s flagship Mutual Mortgage Insurance Fund is in the best condition since before the financial crisis, with capital levels at the highest level since 2007.

The FHA’s annual report to Congress showed a capital ratio of 4.84%, up from 2.76% last year. That’s from a fund that seven years ago, in the wake of the mortgage meltdown, was essentially bankrupt.

But the fund’s improved health doesn’t mean it’s ready to cut the much-hated “life of loan” policy, instituted in 2013, that requires homeowners to pay premiums long after someone with private mortgage insurance would be able to cancel a policy because of rising equity. It also doesn’t mean premiums are going down.

“Where is that correct number?” FHA Commissioner Brian Montgomery said on a call with reporters, referring to capital ratios that would be high enough to cut premiums. “When do we think we’re at a sufficient level to make any adjustments to premiums? I don’t think we’re there yet, but it’s something we’re looking at overall.”

The fund is required by Congress to maintain at least a 2% ratio in reserves, which it has done now for the fifth consecutive year.

FHA’s market share for home-purchase mortgages dropped to 11.4% in fiscal 2019 from 12.3% in the prior year. In 2009, the market share was 18%.

FHA endorsed 990,429 home mortgages in fiscal 2019 through its forward mortgage program, including 743,280 purchase loans. In 2018, FHA endorsed 1.06 million forward loans, including 776,284 purchase loans.

For both years, about 83% of borrowers were first-time homebuyers, according to the report .

The share of loans with borrower credit scores below 620 increased to 12.7% in 2019 from 11.2% in the prior year.

The average loan amount for FHA-insured forward mortgages was $216,695, an increase of about 5% from the FY 2018 average of $206,041.

CREDITS: Kathleen Howley \ Housing Wire

The post FHA capital level is the highest since 2007 appeared first on National Association of Real Estate Brokers .

Despite a Strong Economy, Black Homeownership Continues to Struggle

Tue, 05 Nov 2019 19:00:00 GMT

By: Marie Cyprien

A new report called State of Housing in Black America released by the National Association of Real Estate Brokers shows that not only is the rate of black homeownership decreasing, but the gap between black and white households today is much wider than in 1968.

In fact, recent U.S. Census data reported that black homeownership was at a rate of 40.6% while the rate of white homeownership was 73.1%.

The NAREB report was featured at an event hosted by Rep. Gregory K. Meeks, “The State of Housing in Black America: Educate, Empower, Motivate,” which seeks to advance NAREB’s vision of rebuilding black wealth by encouraging homeownership and real estate investments.

“What NAREB has anecdotally known and can now pinpoint are the systemic blockages and traps that for decades thwarted the right of black Americans to become homeowners,” Donnell Williams, president of NAREB, said in a statement .

According to the report, the main culprit is federal housing policies that stifle black homeownership growth. The reality of these low homeownership rates during a period of high economic growth indicates that there are other factors negatively affecting black Americans’ pursuit of homeownership.

For example, racial discrimination is an issue often believed to be the reason for the low homeownership rate. Black homeownership “has historically been built on a foundation largely consisting of various forms of predatory, high-cost, and unsustainable home purchase loan products and other deceptive and discriminatory housing market practices.”

However, NAREB seeks to close this gap once and for all through advocacy.

Williams said, “NAREB intends to work on numerous fronts to close the wealth gap. I have served notice by issuing a cease and desist order along with reaching out to organizational and faith-based leaders to join our fight. Homeownership is our right as citizens and not a privilege.”

Source: Marie Cyprien / Black Enterprise

The post Despite a Strong Economy, Black Homeownership Continues to Struggle appeared first on National Association of Real Estate Brokers .

Kansas residents are looking back to move community forward

Tue, 05 Nov 2019 18:24:00 GMT

KANSAS CITY, Mo. (AP) — Bernard Crawford grew up on Quindaro during the 1970s. He remembers thriving businesses: bakeries, grocery stores and theaters. He left for school but has come back to be what he calls a “light” on Quindaro, to help it be a safe and welcoming place. A sign on the wall says, “No swearing allowed.”

He’s got fruit snacks and lollipops for the kids, the KCUR reported.

“I want to have a godly atmosphere where families can bring their children,” Crawford says. “I want to see more people coming in and remodeling buildings like I did this one, so resources will come back to the community.”

Mr. B’s Barber Shop at 18th and Quindaro is adjacent to a vacant lot and across from boarded-up buildings. This strip, like other long stretches of Quindaro Boulevard, reflect decades of failed or misguided investment and racist policies that have created pockets of poverty and decay.

Crawford is among an ambitious group of returnees who want to see Quindaro Boulevard become more what it once was. But he and other residents and business owners say they have to battle perceptions of their community in Northeast Kansas City, Kansas, that play out in many news reports.

“A few blocks north of Quindaro Boulevard.”

“Just off Quindaro.”

When headlines link Quindaro Boulevard to every bad thing that happens in the neighborhood, Crawford says, it reinforces a stereotype.

“The stigma from the violence and negativity we have seen portrayed on our news channels (hurts us)” Crawford says as his razor buzzes a customer’s head.

Just a block or so west on Quindaro from Mr. B’s is Wilson’s Pizza. Gary Wilson also grew up on Quindaro. His dad was a firefighter with one of the two segregated black firehouses, and started Wilson’s Pizza in 1989. Gary took it over the next year.

Rolling out his homemade pizza dough and populating the crust with freshly cut vegetables and meats, Wilson says associating Quindaro with every crime in the vicinity drives people away.

“You know when you say something happened on Quindaro Boulevard (when it didn’t), it hurts businesses,” he says.

“If something happened on Metcalf, it happened on Metcalf,” he says, referring to the Johnson County thoroughfare.

As he hands a piping hot pie to a waiting customer, Wilson explains he also sees himself as an anchor in the community.

“Kids come in looking for work, I hand them a broom and give them some work,” he says. “These kids don’t have opportunities so their needs are greater. I’m a counselor, a preacher, I’m more than a business here.”

In her dissertation about the history of the black community in Kansas City, Kansas, anthropologist Susan Greenbaum described a community that was unusually stable and self-sustaining in the latter part of the 19th and early 20th centuries.

She argues this stability was due, in part, to the impact of the Civil War-era Quindaro Township. The river town became a stop on the Underground Railroad for blacks escaping slavery in Missouri as well as a thriving commercial port in territorial Kansas. So-called “free-staters” had come to join the fight in opposing slavery. Quindaro township became a multi-cultural community of white abolitionists and progressives, blacks who had freed themselves from slavery, and Wyandot Indians.

The community survived for less than a decade, but African Americans settled on much of the abandoned farmland.

Later, the Great Migration brought thousands of southern blacks to Kansas, fleeing racial terrorism in the wake of the Civil War. Many settled in the Kansas City area.

By the time Kansas City, Kansas, incorporated in 1886, almost a quarter of the population was black, according to Greenbaum. Black residents were attracted to employment opportunities with expanding railroads and meat-packing houses.

It was a much higher proportion than black populations in other growing urban areas like Chicago or Detroit.

The history and sheer numbers enabled the community to establish a strong infrastructure of social, educational and religious institutions.

“The extent to which the people in the first generation from slavery were able to get the kinds of things done that were done here in that period was just quite impressive,” she says.

While black people benefitted from being on the free side of the state line, communities of Northeast Kansas City, Kansas, including those surrounding Quindaro Boulevard, suffered in the decades to come.

“This remarkable history wasn’t enough to overcome all the institutionally racist forces we would see in the following years,” Greenbaum says.

Robert Hughes, Sr., opened a real estate office in the late 1950s on Quindaro Boulevard. It was a hub for black realtors who’d been excluded from professional associations and from doing business with their white counterparts.

Four years later, Hughes founded the first black mortgage lending company west of the Mississippi River. His son, Robert L. Hughes, Jr., says it was a response to real estate industry and federal housing policies that inhibited access to loans and insurance for black people.

“It was called Mid Central Mortgage Company,” Hughes, Jr. says. “They were able to make Fannie Mae approved loans (to be) sold off into the secondary market and bring funds into the mortgage company so it could make some more loans.”

Hughes says Mid Central spurred growth of single family homes and apartments in the community in the 1960s and ’70s. But it didn’t have the financial capacity of bigger banks and companies. Policies like redlining (refusing loans or insurance to people who live in low-income neighborhoods) deprived black communities of credit and insurance. Blockbusting caused white flight by spreading fear about neighborhood integration. Businesses, black and white, left and drained communities of their tax bases and jobs. Crime increased, exacerbated by the crack cocaine epidemic that afflicted black neighborhoods disproportionately in the 1980s.

Hughes says Quindaro Boulevard entered into a period of decline for decades, putting not only him but other black business owners at a disadvantage.

“I don’t have an asset base. I don’t have the same opportunity from the start and now I’m trying to catch up,” Hughes explains. “I’ll never catch up (because I’m) running a race (in which) you start 100 yards ahead of me. Every time I get to where you were, you’re not there anymore.”

Edith Turnipseed and Veda Monday grew up at 8th Street and Quindaro Boulevard in the 1950s and 1960s. Standing on the grassy lot where their childhood home once was, the sisters, now both in their 70s, remember they weren’t allowed to go farther west along Quindaro than their home.

The black community began at the Missouri River and didn’t extend much farther than 7th or 8th, they recall.

But the sisters remember it as a time of change. Gradual change.

Edith says she was allowed to play in the backyard with the white girl next door.

“Jerry Lou and (I) played all the time,” she says. “I don’t think I ever went in that house and I don’t think Jerry Lou ever went inside our house.”

During this period, black businesses began to open up in the community, like the one that moved into the grocery store when its white owners left.

“It ultimately became the Seafood Grotto, which was owned and operated by an African American man,” Turnipseed says. “That was a big thing, that an African American man got this prime spot, right there on the corner.”

In their memories more than a half century later, it was a happy time.

But Veda says she understands now there was more to the story of their growing up than they knew at the time.

“Our parents did not feel the need to share grown-folk foolishness with children or to visit it upon them,” Veda said. “Much of what we know now we didn’t (learn) until adulthood.”

Some residents believe it was the very process of integration, with the unfair housing and financial practices that accompanied it, which contributed to the loss of a robust black business and cultural community. Some say integration, a measure designed to reverse injustices of the past, had a hand in creating some of the troubles that the neighborhoods surrounding Quindaro Boulevard face today.

More than half a century later, residents and business owners are moving forward by looking back and tapping into the collective energy on which their communities once thrived.

Source: THE HOUR

Information from: KCUR-FM, http://www.kcur.org

An AP Member Exchange by KCUR FM

The post Kansas residents are looking back to move community forward appeared first on National Association of Real Estate Brokers .

For many black millennials, student debt is biggest hurdle in homeownership

Thu, 31 Oct 2019 16:00:00 GMT

By Troy McMullen

Not long after they were married in 2017, Rick and Astardii Hopkins started shopping for a home.

But when the Birmingham, Ala., couple began exploring home loans, they quickly realized their college loan debt limited their options. Both attended local colleges, and like many African American millennials across the country who took on debt in higher proportion than their white counterparts, they were left with tens of thousands of dollars in student loans to repay.

“The loans hit us pretty hard,” said Rick, 28, a chief engineer at Courtyard by Marriott. “It basically limited what we could save for a down payment and how much we could borrow from the bank.”

The couple began working with real estate agent Laurane Simon, who guided them through the financing process and eventually helped them secure a mortgage. A member of the National Association of Real Estate Brokers (NAREB), the oldest black real estate trade association in the country, Simon primarily focuses on African American first-time buyers, better educating them on everything from securing a home loan to budgeting for a down payment.

“This is exactly the kind of first-time home buyer the industry needs,” Simon says. “We need younger buyers of color to be able to embrace real estate.”

But for black Americans — whose overall homeownership rates remain near record lows — attracting a younger generation of home buyers is even more critical.

For a minority group that spent generations largely shut out of a fundamental pillar of the American Dream, black millennials offer the best hope for closing the persistent racial homeownership gap in the United States, housing experts and advocacy groups say.

Homeownership levels for blacks reached 42.7 percent in the third quarter of 2019 (compared with 64.8 percent for the overall population), a near-record low that has virtually erased all of the gains made since the passage of the Fair Housing Act in 1968, landmark legislation outlawing housing discrimination, census data show.

“African Americans are already being left out of the housing market and that’s exacerbating levels of inequality in this country,” says Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR). “There’s a kind of urgency now within the housing community to bring younger African American buyers into real estate.”

Despite a decade of economic growth in the United States, including record low unemployment and higher wages for black workers, millennials of color make up only a small portion of the overall market for real estate, data show.

Millennials made up 37 percent of all home buyers in 2015, lagging behind homeownership rates of Gen X and the baby boomers — the two previous generations, according to research from the Urban Institute. But millennials of color have homeownership rates nearly 15 percentage points lower than their white counterparts.

Between 2005 and 2015, the homeownership rate among white young adults was 38.5 percent, compared with 28.8 percent for Hispanics and 14.5 percent for African Americans, Urban Institute research found. The black millennial homeownership rate fell nearly 10 percentage points during that time, and was the only group to not experience an increase during the housing boom.

Several factors account for the lower numbers, housing experts say.

They include a lack of affordable housing in some areas and chronically low inventory in others. Some surveys also show millennials’ shifting attitudes on homeownership in the wake of the financial crisis.

But like their white counterparts, rising student debt is increasingly the biggest hurdle for many black millennials as more financially strapped younger buyers struggle to save for a down payment.

Nearly 85 percent of blacks who graduated with bachelor’s degrees in 2016 carry student debt, compared with 69 percent of whites with bachelor’s degrees, according to the Center for Responsible Lending, a consumer-advocacy group. The nonprofit organization estimates that the average black student loan borrower owes about $34,000 compared with about $30,000 for white student borrowers.

Nearly 38 percent of all black students who entered college in 2004 had defaulted on their student loans within 12 years, a rate more than three times higher than their white counterparts, according to the Brookings Institution.

A lack of what’s known as intergenerational wealth — or being able to get financial help from a parent — is also hurting younger buyers of color, says Alanna McCargo, vice president for housing finance policy at the Urban Institute.

She says parental wealth has long increased the likelihood of homeownership among young adults, but because minorities are less likely to be homeowners and have less wealth, they are less likely to be able to help their children with things such as money for a down payment or closing costs — often the biggest obstacles for would-be home buyers.

“This explains part of the reason for the persistent gap in homeownership across racial and ethnic groups,” McCargo says. “And it’s another reason to sound the alarm for boosting the minority homeownership rate as the best way to build long-term wealth for black households.”

Despite the bleak housing numbers for black millennials, Donnell Williams, president of NAREB, says he’s optimistic the trend can be reversed.

He points to Urban Institute research using Freddie Mac data showing that black millennials represent 11.4 percent of the pool of mortgage-ready applicants in 31 of the country’s largest metropolitan areas.

This group represents people below age 40 who don’t have a mortgage, but have strong enough credit to qualify for one; a debt-to-income ratio of 25 percent or less; and no recent foreclosures, bankruptcies or serious delinquencies.

While the percentage of mortgage-ready white and Hispanic millennials outpace that of blacks — 19.9 percent and 18.5 percent, respectively — the figure still represents 1.7 million African Americans with a potential for homeownership.

“Wealth building through homeownership is indeed possible and we need to make that happen,” Williams says. “And homeownership represents the tools black Americans in general, and millennials in particular can use to build or rebuild their wealth.”

NAREB recently launched a campaign aimed at getting younger people of color to embrace homeownership.

The effort is called House Then The Car and focuses on communities that have large numbers of millennials and Gen Xers who do not own homes. Car loans are still preventing African Americans in this demographic from buying homes, data from Freddie Mac show.

The campaign includes enhancing financial education, improving homeowner awareness through online educational campaigns and streamlining the mortgage process. The goal is to reach mortgage-ready black millennials who make more than $100,000 annually, but have delayed or not considered homeownership, adds Antoine Thompson, NAREB’s executive director.

Rodney Hampton started home shopping when he returned to Dallas in 2017 after getting his MBA and working in Kansas City, Mo. The 37-year-old Dallas native works in financial services and says he watched home prices rise sharply over the past few years but still decided to jump in.

Like many millennials, he lives in a market where rising home prices and strong demand are sidelining many first-time buyers.

According to a NAR study that examined top millennial housing markets, younger buyers can afford just 10 percent of the homes listed for sale in Dallas.

“When you look at listings, you worry about being priced out of the market,” says Hampton, who worked with J. RaShad Thomas of Star Five Realtors in Dallas to find a two-bedroom home listed at $298,000 in Arlington, a city just west of Dallas that has seen steady price increases over the past five years. “You have to factor in affordability, but ultimately I knew that waiting on the sidelines too long wasn’t really a smart financial option for me.”

In Chicago, real estate agent Sanina Ellison is encouraging younger buyers to consider multifamily housing rather than a traditional single-family home as their first investment. Ellison, a principal owner at Chicago Homes Realty Group, says owning a multifamily property generates income and builds wealth for younger buyers.

“They also offer slow but steady appreciation which is important for a first investment,” she says.

Frantz Jacques is working with Ellison to find a multifamily property in emerging areas of Chicago such as Bronzeville and South Shore, two South Side neighborhoods experiencing increased development. He’s financing the investment through a Federal Housing Administration loan, government-backed financing that can be used for properties with up to four units. He says he has already looked at several properties and hopes to make an offer on one soon.

“This is about building generational wealth,” says the 25-year-old account executive at e-commerce firm Groupon. A native of Evanston just north of Chicago, he graduated college in 2016 and says homeownership was at the top of his list after settling in Chicago.

“I grew up in a family of homeowners,” he says. “So I always understood the long-term financial benefits of owning your own home.”

Sources: Troy McCullen \ The Washington Post

The post For many black millennials, student debt is biggest hurdle in homeownership appeared first on National Association of Real Estate Brokers .

Statement by President Donnell Williams on Increase of 3rd Quarter 2019 Black Homeownership Rate

Tue, 29 Oct 2019 23:31:00 GMT

Washington, DC – October 29, 2019 – The National Association of Real Estate Brokers (NAREB) is cautiously encouraged about the U.S. Census Bureau’s third quarter 2019 Black homeownership rate of 42.7% up from 40.6% in the previous quarter. While all of the homeownership rates increased during this latest reporting period, the Black homeownership increase of 2.1% represented the largest uptick. In the bigger picture, NAREB is mindful that Black homeownership currently and continues to lag more than 30 percentage points behind the non-Hispanic White homeownership rate of 73.4%, higher than the recorded gap at the time of the passage of the 1968 Fair Housing Act.

Robust seasonal home purchase activity during the summer months generally accounts for the overall increases in all ethnic and general market categories. I am hopeful, however, that NAREB’s boots-on-the-ground approach and other homeownership advocates will continue to support an upward trend of Black homeownership rates into the fourth quarter 2019 and beyond.

We know and take into consideration the volatility of the real estate marketplace and the prevailing purchasing distrust that runs alongside economic vagaries particularly in the Black community. Nevertheless, I remain confident that concerted efforts to educate and inform Black homebuyers about the wealth building aspects of homeownership versus uncertain and rising rental rates, will prevail.

# # # # #
The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. At the same time, NAREB advocates for and promotes access to business opportunity for Black real estate professionals in all of the real estate disciplines. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

—

Download Press Release

The post Statement by President Donnell Williams on Increase of 3rd Quarter 2019 Black Homeownership Rate appeared first on National Association of Real Estate Brokers .

Commercial real estate firm JLL pulls out of summit over lack of diversity

Wed, 25 Sep 2019 15:51:00 GMT

The New York Multifamily Summit is billed as a chance to discuss investment in, among other places, areas that have large historic black communities

By: Jim Dalrymple II

International commercial real estate firm Jones Lang LaSalle (JLL) revealed Friday that it is pulling its support of an upcoming industry conference due to a lack of diversity among the event’s speakers.

The New York Multifamily Summit is scheduled to take place on Oct. 31 in Manhattan. Up until Friday, Bob Knakal, chairman of New York investment at JLL, had been scheduled to give the keynote speech and to moderate a panel at the event. The branding for the summit also announced that it was “powered by” events company GreenPearl but presented by JLL, which manages 4.6 billion square feet of property around the world.

However, Friday evening a spokesperson for JLL told Inman in an emailed statement that the company was no longer supporting the gathering.

“JLL is pulling its sponsorship of GreenPearl’s upcoming New York Multifamily Summit because of the absence of a diverse group of speakers at the event,” the statement explained.

By Friday evening, the summit’s website also no longer mentioned Knakal, or any keynote speaker for that matter, and references to JLL had been removed.

Concerns about diversity at the multifamily event arose earlier this week. On Thursday, Thomas Lopez-Pierre, a former New York City council candidate who runs a real estate investment firm (and who has himself courted controversy in the past) tweeted that the event lineup included “no black speakers.” Lopez-Pierre told Inman that he also messaged everyone on his email list about the event. He added that his email management system indicated the message was forwarded thousands of times.

The controversy over diversity at the summit was further complicated by the fact that it bills itself as, among other things, an opportunity to discuss multifamily real estate investment in “less densely populated areas in New York City such as the Bronx, Yonkers, Newark and Westchester.”

But some of those areas have large historic black communities. According to the U.S. Census Bureau, for example, Newark, New Jersey, is more than 50 percent black and only a quarter white.

The Bronx is more than 43 percent black and just under 45 percent white, according to the U.S. Census. Yonkers and Westchester are both predominately white, but at more than 17 percent and 16 percent black, respectively, still have sizable African American communities.

The list of speakers appearing at the multifamily summit does include several individuals whose ancestry lies outside of Europe. For example, Niraj Shah, founder of online retailer Wayfair and the son of Indian immigrants, is currently scheduled to appear at the event.

However, the apparent lack of any black speakers meant that a mostly white group of development experts would be converging to discuss how to profit from investment in black communities.

Donnell Williams, president of African American trade group the National Association of Real Estate Brokers (NAREB), said Friday that it is not uncommon for black real estate professionals to be excluded from industry events like the upcoming summit.

“We don’t get looked at,” he told Inman. “We have Realtors sitting in New York City that were not invited.”

Williams also said that many neighborhoods in the New York area are facing issues related to gentrification, which is exacerbated by a racial wealth gap and developers who have zeroed in on minority communities.

“That happens all the time,” he added.

GreenPearl, the company organizing the multifamily summit, did not immediately respond to Inman’s request for additional information Friday, and it was not clear if any other changes to the lineup were in the works after JLL dropped out.

However, speaking to Inman, Lopez-Pierre argued that inclusion in industry events matters.

“This is about economics,” he said, “but we’re not being invited to participate.”

CREDITS: Jim Dalrymple II \ INMAN

The post Commercial real estate firm JLL pulls out of summit over lack of diversity appeared first on National Association of Real Estate Brokers .

Robust U.S economy not a boost for black homeownership

Tue, 24 Sep 2019 20:19:00 GMT

New State of Housing in Black America report issued by NAREB points to years of flawed and disparate lending practices, and discriminatory federal government housing policies

Washington, DC – September 13, 2019 – In spite of a robust U.S. economy, a strong employment rate, and steadily increasing 401(k) plan earnings, Black homeownership rates continue to drop. Drawing from the 2019 release of the National Association of Real Estate Brokers State of Housing in Black America (SHIBA) report , not only is the rate of Black homeownership falling, the gap between Black and Non-Hispanic White households today is larger than it was in 1968.

SHIBA report findings were released September 12, 2019 at NAREB’s Issues Forum held during the Congressional Black Caucus Foundation – Annual Legislative Conference. The event, hosted by Congressman Gregory K. Meeks (D-NY) and entitled, “The State of Housing in Black America: Educate…Empower… Motivate” served as the launching pad for NAREB’s aggressive, multi-pronged approach to rebuilding Black wealth through homeownership and real estate investment.

“What NAREB has anecdotally known and now can pinpoint are the systemic blockages and traps that for decades thwarted the right of Black Americans to become homeowners,” said Donnell Williams, president of the National Association of Real Estate Brokers, the country’s oldest professional minority real estate trade association. Latest U.S. Census Bureau data reported the Black homeownership rate at 40.6%. During the same time period (2nd qtr. 2019), the non-Hispanic White rate of 73.1% was charted, a 32.5% gap.

Made clear in the report is the role federal housing policies have played that are largely responsible for stifling the growth of Black homeownership. The reality of staggeringly low homeownership rates during a period of overall economic growth indicates that there are other powerful forces adversely affecting Black Americans’ pursuit of homeownership. The unsettling result is an apparent decline that translates into a widening gap in net worth between Blacks and non-Hispanic Whites. The report further warns that a recession will likely push the rate of Black homeownership below 40%, approaching levels not experienced since the 1950s.

Kicking off the two-panel forum were remarks from Congressman Meeks announcing to the more than 500 people packed into the standing-room only gathering that he would be introducing the American Dream Down Payment Savings Plan. The legislative initiative is designed to help homebuyers with the purchase of a home in a way similar to the 529 college savings plan. He applauded NAREB’s advocacy efforts and urged the audience to keep being vigilant.

Each of the expert panelists that followed spoke to NAREB’s legislative agenda in support of the three areas of public policy change which included: rethinking credit scoring and restrictive underwriting; eliminating loan level price adjustments (LLPAs) and risk-based pricing; and expanding down payment assistance programs. Panelists included: James H. Carr , Coleman A. Young Endowed Chair and co-author of NAREB’s 2019 edition of the State of Housing in Black America report; Maurice Jourdain-Earl, Managing Director, ComplianceTech; Nikitra Bailey , Executive Vice President, Center for Responsible Lending (CRL), and Mark Alston , owner, Alston and Associates Mortgage Co. and past chair, NAREB Public Affairs Committee.

While the first panel addressed the on-going barriers to homeownership, the second panel focused on solutions to attract the 1.7 million non-homeowning Black millennials with incomes of $100,000 or more to consider the wealth building aspects of purchasing a home or investing in real estate.

The audience heard from progressive public officials, entertainers, a sports figure and a NAREB Realtist, including: LaTisha Grant, Broker/Owner of Houston-based TAS Realty Group and convener of NAREB’s new “House Then the Car” initiative; Stephen K. Benjamin , Mayor of Columbia, SC; Ronald “Ronnie” DeVoe , entertainer, entrepreneur and founder of DeVoe Real Estate Group in Atlanta, GA; Will Jawando , At-Large Councilman, Montgomery County, MD; Bobby Simmons , former NBA star, entrepreneur and founder of the Bobby Simmons Rising Stars Foundation, and Waka Flocka Flame , popular rapper, entrepreneur and investor.

As the SHIBA report indicates, racial discrimination is often asserted to the principal “unexplained” factor for the low homeownership rate and there is good reason. Black homeownership has historically been built on a foundation largely consisting of various forms of predatory, high-cost, and unsustainable home purchase loan products and other deceptive and discriminatory housing market practices.

Yet, as the report details, while discrimination has played a major role in denying affordable and sustainable homeownership access to Black households, discrimination by individual private market actors is insufficient to fully explain the gap between Black and non-Hispanic homeownership rates. Federal policies are, at least, if not more, responsible for limiting Black homeownership.

“NAREB intends to work on numerous, yet appropriate fronts to close the wealth gap. I have served notice by issuing a cease and desist order along with reaching out to numerous organization and faith-based leaders to join our fight to make homeownership an equal opportunity for Black Americans. It is our right as citizens of these United States and not a privilege,” Williams added.

The 2019 edition of the State of Housing in Black America (SHIBA) report can be viewed and downloaded on the NAREB website: http://www.nareb.com/shiba-report/

* * * * *

The National Association of Real Estate Brokers (NAREB) was formed in 1947 to secure the right to equal housing opportunities regardless of race, creed or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans along with promoting access to business opportunity for Black real estate professionals. NAREB annually publishes The State of Housing in Black America report. www.nareb.com

Download Press Release

The post Robust U.S economy not a boost for black homeownership appeared first on National Association of Real Estate Brokers .

Every 2020 Democrat’s Plan to Fix the Housing Crisis

Sat, 21 Sep 2019 00:32:00 GMT

By Josh Ocampo

Over the weekend, Bernie Sanders teased a $2.5 trillion housing plan, which, among other things, promises to establish a national rent control standard and make significant investments in affordable housing. Like Sanders, several other Democratic candidates have released proposals to tackle housing inequality in America. Former Secretary of Housing and Urban Development Julián Castro, unsurprisingly, has one of the most detailed plans, with policies he says would tackle the homelessness crisis. Meanwhile, former Texas rep. Beto O’Rourke has yet to release any kind of housing plan (or respond to criticism of his controversial record on the issue).

Below you’ll find the key points in the housing plans of every Democratic who has qualified for October’s debate so far. (We’ll also note if a candidate has yet to provide a housing plan.) A couple of recurring themes you’ll see: incentives to eliminate strict zoning rules that prohibit affordable housing development, and plans to tackle racial inequality in housing opportunities.

Joe Biden

Cory Booker

Pete Buttigieg

MANCHESTER, NH – SEPTEMBER 07: Democratic presidential candidate, former HUD Secretary Julin Castro speaks during the New Hampshire Democratic Party Convention at the SNHU Arena on September 7, 2019 in Manchester, New Hampshire. Nineteen presidential candidates will be attending the New Hampshire Democratic Party convention for the state’s first cattle call before the 2020 primaries. (Photo by Scott Eisen/Getty Images)

Julián Castro

Kamala Harris

Amy Klobuchar

Beto O’Rourke

No plan provided and when asked about affordable housing during a recent campaign stop in New Hampshire , O’Rourke was mostly vague; he supports the creation of “millions” of housing units. (In 2006, he also faced criticism over redevelopment in El Paso that would have impacted low-income neighborhoods and homeowners.)

Bernie Sanders

Tom Steyer

No plan provided.

Elizabeth Warren

Andrew Yang

CREDITS: Josh Ocampo \ LifeHacker

The post Every 2020 Democrat’s Plan to Fix the Housing Crisis appeared first on National Association of Real Estate Brokers .

‘The Color of Wealth in Miami’ Is Black and White

Fri, 06 Sep 2019 20:46:00 GMT

By Aracely Panameño

From our nation’s founding, state and federal laws have either stacked the deck for or against Americans of diverse racial and ethnic origin. In their new report, “The Color of Wealth in Miami,” Alan A. Aja, Gretchen Beesing, Daniel Bustillo, Danielle Clealand, William Darity, Jr., Darrick Hamilton, Mark Paul, Anne E. Price, and Khaing Zaw demonstrate how these policies, written in black and white, have concentrated wealth in the hands of white Americans to the detriment of people of color.

[scribd id=422520045 key=key-hHpepFW2FkPr4eqmtVf2 mode=slideshow]

“The Color of Wealth in Miami,” the fourth in a series, sheds light onto how policy makers create winners and losers among the people in the great American experiment from its earliest days. The authors document the wealth and asset position disparities of communities of color in relation to their white counterparts. The data begs the question as to how these disparities have come to be and raise difficult questions about the intersection of debt with questions of race, ethnicity and legal status. By attempting to answer these questions, the authors help us arrive at the consequences of structural and systemic racial discrimination, and wealth extraction of people of color, especially the nation’s black population.

A Brief History of Race, Ethnicity, Immigration and Wealth

Our earliest history shows that Native Americans were forcefully dispossessed of their lands. People of African descent were originally enslaved and sold as chattel property to white landowners prior to gaining citizenship status. These atrocities in our early history set the stage for the advantage and disadvantage reflected in today’s racial wealth gap.

At the founding of the republic, only white male property owners were able to vote and serve in elected office. Everyone else was excluded from participating (U.S. Constitution, Article I, Sec. 2 ). Enfranchisement was ultimately extended to black men, non-property owner white males, Native Americans, women (although Jim Crow laws prevented women and men of color from voting), and 18-year-olds through various amendments to the U.S. Constitution. This system established the almost perpetual advantages that yield great financial returns for the rule makers and keeps others on a treadmill to nowhere.

Similarly, successive immigrant waves have been discriminated and dispossessed such as Asian communities with the Chinese Exclusion Act of 1882 , the internment of Japanese-Americans during World War II, and others.

Then there is the history of the U.S. border crossing Mexicans . Mexican Americans, Mexicans, and other immigrants of Latin American descent continue to face vilification and discrimination today. Meanwhile, descendants of white conquerors designed and continue to put in place laws and policies that cement their power over all other Americans.

While there should be no debate over the history, too often the discussion about the remedy to the racial wealth gap is centered on the ethos that people must “pull themselves by their bootstraps,” should go to school, work hard, play by the rules, and be “responsible” with credit. In the financial services space, the discussion is reduced to financial innovation and financial products. However, the rules are a moving target, always changing. Education, while quite beneficial to those who attain it, is not an equalizer. And financial innovation and debt, even if well underwritten, can never undo historical racial discrimination that results in financial marginalization. Moving forward this situation can only be addressed through bold federal and state laws and policies that create equity of opportunity for all.

Wealth in Miami: How Do Diverse Communities Fare?

The revelations of the Miami report show that laws and policies impact the success of newer immigrants to America in a racialized manner that is parallel to the racial binary the country set from its beginning. The authors look at the asset and wealth positions of the diverse populations in Miami, white residents, black residents, Caribbean blacks residents, Cubans, Puerto Ricans (U.S. citizens by birth), other Latinos, and South Americans. They further disaggregate these ethnic groups into white, black, and other racial categories, common in the U.S. context.

The data disaggregated by race within each ethnic category or national group reveal that “blatinos” (black Latinos and Caribbeans) tend to fare worse than their “whitino” (white Latinos and Caribbeans) counterparts. The findings bring to bear the racial dichotomy so prevalent in the historical context of the United States. Each subgroup shows racialization in the aspects of their financial life covered in the study. Racial assignation further undermines the opportunities that could help newer Americans get a footing in their financial and wealth position. Indeed, the data tell the story of how different policies shape people’s ability to succeed in the U.S. economy.

Concerning median wealth, the U.S. white population remains squarely on top above everyone else by a large margin. They hold total wealth, liquid wealth, have the highest proportion of people with liquid assets, are banked (with savings and checking accounts), have stock ownership, and IRA or private annuity ownership at a higher level than all other groups. They have almost five times as much total wealth as Cubans, who are the most successful of all Americans of immigrant descent and immigrant subgroups in Miami. When compared to the black population, whites have 29 times as much total wealth and 89 times as much total wealth as South Americans. Puerto Ricans are last in a wealth grave of negative equity.

Wealth is the reserves families and individuals can draw upon to acquire more wealth, use during times of financial stress, pay for a child to go to college, start a business, and achieve financial independence. The report tells us that Puerto Ricans in Miami are in a perpetual state of financial stress and close to destitution as any one group can get. South Americans are one paycheck away from homelessness. Black Miamians may be able to pay for a month of average housing cost without the ability to pay for anything else. Other Latinos and Caribbean blacks are almost similarly situated and may be able to pay for four to five months of living expenses with their wealth reserves. Among people of immigrant descent, Cubans are the best positioned to weather financial storms with about 20% of wealth resources as those held by whites, approximately seven to 10 months’ worth of housing expenses.

Liquid wealth is the working capital that families and individuals use to pay for day-to-day expenditures. Looking at the population subgroups through the lens of working capital alone reveals a grim daily reality for black residents of Miami—they only hold $11 on hand. Puerto Ricans are not that better off with $200 on hand. Everyone else keeps an amount of working capital equivalent to a proportion of median wealth. For example, whites keep the equivalent of 10 percent of their median wealth as working capital. Other Latinos hold on to the equivalent of 50 percent. South Americans keep the equivalent of 160 percent while Cubans and Caribbean blacks are the subgroups more closely resembling whites by keeping the equivalent of 14 and 16 percent of their respective median wealth as working capital.

Based on a capitalistic model, households should keep wealth assets other than working capital invested in activities that yield greater returns—wealth assets should be invested and not sit idle. The data show that whites, Cubans, and Caribbean blacks adhere to this financial behavior more than the other population groups.

Do People Choose to Be Poor or Do Circumstances Matter?

While the report does not go into more detail about the circumstances of ethnic subgroups, it raises multiple questions. What is the reasoning behind keeping such a significant proportion of total assets as working capital for those identified as other Latinos and South Americans? Could it be that these households have such low incomes compared to their financial needs that their total wealth is a proportion of their working capital needs? Is it possible that immigrant subgroups’ sense of financial vulnerability and poverty is such that they keep their money under the proverbial mattress? Could this be an intersection of household finances and the lack of legal status for householders? Or, are these households subsidizing families in their countries of origin and therefore using liquid wealth to send remittances to other countries?

These are questions worth exploring to have a better understanding of behavior and wealth balances. Ultimately, people cannot save or invest what they do not have or if they do not feel secure.

The Role of Debt on Wealth Position

The debt position of all subgroups is very similar across multiple debt categories from homeownership to credit card debt. But not all debt is created equal. It takes wealth in the form of a down payment to acquire a home, an excellent credit score, and whiteness to obtain mortgage credit with the best available terms. Once acquired, mortgage debt has a preferential position in the U.S. tax system, and mortgage holders can deduct interest payments from their tax liability. Further, paying down a mortgage ultimately results in building equity and owning a major asset. Other debts may smooth out income and expense fluctuations but do not lead to asset ownership. Student loan interest has a limited level of deductibility. It cannot be addressed in bankruptcy, but still offers some tax benefit. The auto loan interest deduction and other consumer loan interest deductions were eliminated with the passage of the Tax Reform Act of 1986 .

Most recently, the Tax Cut and Jobs Act of 2017 made the most sweeping changes to the tax code since 1986. The most substantial change to the mortgage interest deduction is the amount that can be deducted. Given this change, the jury is still out on whether the limitations on it and other tax changes will discourage potential home buyers from buying a home.

Overall, debt is a double-edged sword. The American system of credit is based on performance across credit products. Credit can generate more credit, which can be good and bad depending on many factors. It can be good because credit under good terms decreases risk and increases investment capacity. However, credit under bad terms increases the risk of default by consumers and losses to creditors. In general, credit can push consumers to become overleveraged and increase risk of default irrespective of terms. Predatory, unfair, and deceptive credit practices set consumers to fail and hurt individuals, families, and communities. Additionally, products like open credit cards can change unilaterally (increasing and decreasing credit limits and changing interest rates) and have an impact on credit profiles, scores, subsequent credit availability, and pricing.

Predatory Lending

Small dollar credit products like payday, car-title loans, and some installment loans offer no benefit at all. These products are marketed as a solution to emergency situations or to smooth out income and expense fluctuations. The reality is far from this portrayal. With triple-digit interest rates, short-term maturations, and no ability-to-repay evaluation, these products set consumers up to fail and drive consumers to refinance the original loan multiple times and incur charges that increase the cost of the original credit by multiple hundreds percent. Consumers availing themselves of these predatory products end up with marred credit, and other financial consequences that lead to more expensive credit offers in the foreseeable future. Consumers must be savvy, avoid predatory products and deceptive practices, and remain vigilant in credit markets. The Center for Responsible Lending (CRL) is a leader on these issues and is fighting to keep predatory lenders at bay.

Once Confidence in Financial Systems Is Lost: Can It Be Regained?

Immigrant populations can be averse to credit depending on their experience with banking services and credit markets in their countries of origin. Mexico’s 1994 economic crash and Argentina’s recession in the early 2000s are good examples of why immigrants may not trust financial systems and institutions. Both examples resulted in a run on the banking system and the respective governments adopting policies to protect the system at the expense of the consumers.

In the U.S., white Americans have benefited from access to federally insured mortgage loans, government grants for education, and business capital while other groups were limited or excluded altogether from these supports. For example, historic federal policies rated communities with high concentrations of people of color in residential neighborhoods lower, resulting in lowered property values in those communities. Redlining , the practice of denying credit to people of color, and reverse redlining , the practice of offering credit at a higher cost and under unfair or deceptive terms for borrowers of color, have disadvantaged and devastated communities of color that have yet to benefit from the so called booming economy and recovery.

In financial investment portfolios, lack of diversification can lead to wealth wipe out when market crashes occur. Black and Latino wealth was decimated in the housing crash that began in 2006 because most of their wealth was tied to home equity. The Pew Research Center estimates that Latinos and blacks lost 65% and 53% of median net worth respectively as a result of the housing and stock market collapse. Two thirds of the net worth losses for Latinos and nearly 60% of losses for black homeowners derived from home equity.

Predatory lending in the refinance market was responsible for the wipeout of black wealth and predation in the first-time home buying market wiped out any wealth or equity gains made by Latinos who entered homeownership during the housing bubble of the early 2000s. Some conservative researchers and pundits say that people of color should not put all their eggs in the homeownership basket. This statement assumes that people have many eggs to invest in different baskets and ignores the advantages enjoyed by whites that have resulted in a windfall in assets that can be invested in a diverse portfolio and disadvantages everyone else. Despite the inequities and not disaggregating by race and ethnicity, 2014 data released by the U.S. Census show that home-owning households have 90 times higher median net worth than renter households. Furthermore, given the tax treatment of the mortgage interest and the universal need for shelter, it is rational for people of all backgrounds with limited resources to want to invest in homeownership.

Similarly, with educational debt, people of color have increased their high school graduation and college enrollment numbers over the last few decades. However, the amount of national investment in education has decreased while the cost of education has increased. Earnings after college, especially for people of color, have not seen the same increase compared to higher education costs and college education is not an equalizer when it comes to wealth accumulation. Today, students (those of color in particular) are compelled to obtain higher education through student debt. In “ The State of For-Profit Colleges ,” CRL adds to the body of evidence of the pitfalls students face in trying to obtain higher education.

CRL states that many for-profit colleges deliver low quality education at a high cost. Often, even when students graduate, they are unable to obtain jobs with incomes that would allow them to service the debt and improve their lot in life. These debt levels diminish the returns of education in the labor market, even without accounting for racial discrimination in employment and wages. So, while higher education is quite beneficial and necessary in today’s job market, Darity, et. al. previously showed that it does not lead to reduce the racial wealth gap. They show that African Americans with a college degree only have thirteen percent the wealth similarly situated whites have (Darity, Hamilton, Price, Sridharan, and Tippett, “ Umbrellas Don’t Make it Rain: Why Studying and Working Hard Isn’t Enough for Black Americans “). In addition, they show that white students without a high school diploma have 33% more wealth than black students with a college degree. Overall, debt load undermines people’s capacity to benefit from higher education and entrepreneurship if the yields of the debt are not enough to service and pay off that debt.

Legal Status and Citizenship Are Assets

Among newer Americans, Cubans are the best positioned in Miami. Their earlier success was the result of Cold War policies that provide immediate access to legal immigration status, an expedited path to citizenship, provided access to higher education, and access to mainstream financial markets and business start-up capital. The U.S. made significant investments into restoring early Cuban immigrants to their motherland social status, an investment that has not been done for any other group. In fact, the Afro-Cubans included in the early waves came to have a similar experience as that of white Cubans—some of them were racially identified as white and enjoyed the same social benefits as their white counterparts. Later Afro-Cuban arrivals have come to experience the same level of racial discrimination as the U.S. black population.

Immigrants from other parts of the Caribbean and Latin America who sought legal status had to comply with immigration prerequisites, having assets and wealth in the country of origin to be eligible and access to higher education. Undocumented immigrants had to face different levels of barriers based on the time of arrival to the U.S. For example, undocumented immigrant minors who entered the U.S. prior to 1982 could not necessarily attend public schools K-12 until the U.S. Supreme Court handed down its decision on the Plyler v. Doe case . In 1986, undocumented immigrants who had arrived prior to 1982 and resided continuously in the U.S. since then were granted amnesty , given legal status, authorized to work, study, serve in the military, and given a path to citizenship. The court’s decision and the federal legislation granting amnesty were two policy changes that provided opportunities for immigrant communities meeting the criteria but not for all.

Later, the Temporary Protected Status (TPS) program gave relief to hundreds of thousands of immigrants and refugees from Nicaragua, El Salvador, Honduras, Haiti, and other countries. The Obama Administration through executive memorandum created the Deferred Action for Childhood Arrivals (DACA) program to offer relief from deportation to young immigrants who did not have legal status, had entered the country as minors, and met other criteria. Today, both the TPS and DACA programs are under threat of cancellation by the Trump Administration and court challenges of those decisions are moving through the judicial system. The potential cancellation of these programs creates anxiety and uncertainty in the lives of nearly 1.5 million people and their families; it would up-end their lives and negatively impact the communities where they reside.

All the policy changes and laws mentioned above allowed immigrants to come out from under the shadows and participate fully in American life and economy. These changes in federal policy allowed immigrants to become integral members of communities and fully vested economic actors in markets. They bought homes, created businesses, contributed fully to federal, state, and local tax coffers, and community life. The cancellation of these programs would have far-reaching consequences greater than those measured through economic losses.

What Is the “Other” Category?

Education is supposed to enable people to find better employment opportunities with better wages and benefits than they otherwise would have. In typical fashion, the disparity in higher education between the U.S. white population and the U.S. black population is quite substantial—more than twice as many white heads of household have a bachelor’s degree or higher than black heads of household. The disparity is less pronounced among whitinos and blatinos of all other ethnic backgrounds. (Colombian blacks are the exception having a slightly higher level of education than Colombian whites.)

The latest Miami report also shows that a significant proportion of Caribbean and Latin American Miamians identify as “other” than white or black. In this regard, the authors omit discussion of the proportion of these communities’ Native American heritage. So, mestizaje might be an explanation for the “other” category. It is also rational that when people of Caribbean and Latin American descent understand the risks associated with the black racial assignation, they would rather identify as “other” even when the naked eye reveals an African racial heritage.

Even accounting for mestizaje, it is clear from the data that the overall U.S. black population and blatinos (who also form part of the U.S. black population) share similarities in homeownership and wealth accumulation experience. The racial disparities among whitinos and blatinos of different national origin is consistent with the disparities between the U.S. white population and the U.S. black population, thereby leading to the conclusion that race assignment plays a greater role in economic success and ability to accumulate wealth in America.

Conclusion

It is abundantly clear that historical racial discrimination, immigration policy, access to capital markets, business start-up capital, mortgage credit, and other wrap-around services set communities up for success or failure. Slavery and Jim Crow laws, state and local laws that legalized racial segregation in the South since the end of the Reconstruction until the late 1960s, have had a lasting impact on the U.S. black population hat continues to this day. “The Color of Wealth in Miami” shows that this impact is transferred over to blatinos from Latin America and the Caribbean on the basis of racial assignation.

More studies are necessary to supplement our understanding of the racial identification of newer Americans and immigrant communities.

“The Color of Wealth in Miami” also proves that federal and state laws and policies matter. To the extent that these are designed to advantage the U.S. white and whitino population, it will always be at the expense of the U.S. black and blatino population.

Bold federal and state laws and policies need to be implemented to mitigate and reverse the harms of historical and structural racial discrimination. To counter the effects of historical inequities, policymakers at all levels must consider race-conscious policies, including but not limited to reparations to the descendants of slaves, baby bonds (trust accounts at birth), mortgage down payment grants, business start-up capital, and other investments for communities of color harmed by redlining, reverse redlining, and predatory mortgage lending. Policymakers must address the flaws in the financial system that allows for unfair and deceptive income extraction through predatory lending and practices like payday, car-title, overdraft fees, and debt collection.

Congress must regularize the status of DACA and TPS holders. They are Americans in every way. Congress must also pass a comprehensive immigration reform proposal that addresses our labor market needs and deals with undocumented immigrants in a humane way. Our nation was built by immigrant dreamers.

Finally, our government and financial institutions must stop profiteering from American millennials and students in higher education. Young people are the present and future of our nation and we must advance their success. If we do not act in these areas, we will contribute to the racial wealth chasm that if left unaddressed may lead to civil unrest. We should take note that all around the globe growing wealth inequality is already contributing to civil unrest.

CREDITS: Aracely Panameño \ Latino Rebels

The post ‘The Color of Wealth in Miami’ Is Black and White appeared first on National Association of Real Estate Brokers .

Homeownership is the Top Contributor to Household Wealth

Fri, 30 Aug 2019 00:58:00 GMT

BY: JANN SWANSON

Two US Census Bureau researchers have determined that the biggest determinants of household wealth are owning a home and having a retirement account . While that may not be surprising, the degrees of magnitude are.

Using data from the 2015 Survey of Income and Program Participation, Jonathan Eggleston, an economist, and Donald Hays, a survey statistician in the Bureau’s Social, Economic and Housing Statistics Division found that the wealth inequality between homeowners and renters is striking, with the former having median net worth 80 times that of the latter . Further, they found wide variations in wealth across demographic and socioeconomic groups. Given that the two are using 2015 data and with the rapid increase in home values since then, the degree of inequality today is probably greater.

The authors say net worth is an important indicator of economic well-being that provides insights into a household’s economic health. For example, during financial hardships such as illness or unemployment wealth is a buffer. It is measured by the value of assets owned minus the debts owned. Therefore, net worth can be negative. Households in the top 1 percent of net worth were excluded from the study.

About half of households had outstanding unsecured debt with a median of $7,500. Credit card and store bills were the most common unsecured liability and about one in five households had outstanding student loan debt, with a median for those that did of $20,000.

In 2015, 37 percent of households did not own a home and 47.1 percent did not have a retirement account. For those who had both, the home equity and savings accounted for 62.9 percent of the household’s net worth. Equity provided 34.1 percent and retirement accounts made up 28.8 percent

From there, the percentage of assets contributing to wealth drops off sharply. The third and fourth categories, stocks/mutual funds and bank accounts made up about 8.5 percent each. Some of the most commonly held assets made up only a small portion of wealth, for example, 91 percent of households hold those fourth-ranked bank accounts while the largest contributor to wealth, home ownership was the third most commonly held asset. While the median amount of home equity was $95,800, the median value of assets at financial institutions was $4,600.

There were significant differences in worth within categories of age, gender, race, education, and employment . Having health insurance also appears to be a factor although it would be a result rather than a cause.

Unmarried female householders between the ages of 35 and 54 had a median wealth of $14,860. That was 39.5 percent of the median wealth held by unmarried males of the same age. That difference, however, disappeared in the 55- to 64-year old group; both unmarried women and their male counterparts had grown their net worth to about $60,000.

Non-Hispanic white and Asian householders had more household wealth by far than black and Hispanic householders. Non-Hispanic whites had a median household wealth of $139,300 and Asians $156,300 compared with $12,780 for black and $19,990 for Hispanic householders.

Households in which the most educated member held a bachelor’s degree had a median wealth of $163,700, compared with $38,900 for households where the most educated member had a high school diploma.

Not surprisingly, those households in which at least one person had a full-time job for the entire year had a higher net worth ($101,000) than those where all members had a part-time job ($61,690) or were unemployed ($22,100). Households in which people were without health insurance all or part of the year had dramatically lower median wealth: $16,860, compared with $114,000 for households in which all members had health insurance for the entire year.

Credits: Jann Swanson | MORTGAGE News Daily

The post Homeownership is the Top Contributor to Household Wealth appeared first on National Association of Real Estate Brokers .

Coldwell Banker and Realogy Support NAREB

Wed, 28 Aug 2019 16:32:00 GMT

By Kevin Guhl, Neighbor

Coldwell Banker And Realogy Support National Association Of Real Estate Broker’s Commitment To Diversity And Inclusion

MONTCLAIR, N.J. (Aug. 23, 2019) – Coldwell Banker Residential Brokerage and its parent company Realogy had the honor of being a corporate sponsor of the 72nd Annual National Convention of The National Association of Real Estate Brokers (NAREB) at Harrah’s Resort in Atlantic City. This year’s theme was “Building Black Wealth Through Home Ownership,” aligning with NAREB’s mission statement of “Democracy in Housing.”

Coldwell Banker was represented by branch office managers from across the country including Roderick Logan of Montclair, Natalie Carpenter of Hyde Park and Lakeview, Ill., and Sandra Stewart of Arlington, Va. The Coldwell Banker managers ran a photo booth vendor exhibit, attended educational workshops, networked and celebrated the induction of NAREB President Donnell Williams during the weeklong event.

“This was an incredible opportunity for Coldwell Banker and Realogy to show support for both NAREB and our company’s overall commitment to diversity and inclusion,” said Logan.

Coldwell Banker real estate agents in attendance included Ilene Horowitz and Rudy Riveron of the Mountain Lakes, N.J. office; Horowitz is also president of New Jersey Realtors. Realogy leaders in attendance included National Sales Recruiter Toni George, National Director of Growth Markets Jason Riveiro and Senior Vice President of Human Resources Tanya Reu-Narvaez.

Industry speakers included R. Donahue Peebles, chairman and CEO of the Peebles Corporation and honoree on the Forbes list of the Wealthiest African-Americans, and Ryan Gorman, president and CEO of NRT,LLC, a Realogy company that operates Coldwell Banker Residential Brokerage. Both Peebles and Gorman spoke during the conference on topics addressing the ever-changing real estate environment.

Credits: Kevin Guhl | Patch

The post Coldwell Banker and Realogy Support NAREB appeared first on National Association of Real Estate Brokers .

Why So Many Black Property Owners in Central Brooklyn Are Losing Their Homes, Explained

Wed, 21 Aug 2019 16:05:00 GMT

Part 1 in a series: The difference between deed theft and the city’s controversial Third Party Transfer Program

By Charlie Innis

Black homeowners in Central Brooklyn are losing their homes at an alarming rate, and the main culprits are deed theft and the city’s controversial Third Party Transfer Program.

As of March 2019, there were at least 6,000 foreclosures pending in Kings County with more are on the way, according to Catherine Isobe, senior staff attorney at Brooklyn Legal Services . Bedford-Stuyvesant, Crown Heights and East New York have some of the highest rates of real estate fraud, along with Canarsie and Flatlands, according to legal advocates

Residents may feel like the two offenders are one in the same. But while both result in similar outcomes, Third Party Transfer and deed theft are two separate concerns.

What Is Third Party Transfer?

Third Party Transfer is a city program in which “distressed” vacant or occupied properties are foreclosed by the city and given to a qualified sponsor, a non-profit or for-profit building developer, to rehabilitate it for affordable housing.

NYC Housing Preservation and Development launched TPT in 1996, when abandoned buildings were a common sight in New York. The central motivation was to collect unpaid taxes and bills from negligent landlords and foreclose derelict housing units, fix them up, and rent them out to tenants at low- to mid-incomes.

In recent years, the program has led to black home-owners and other small property owners in Central Brooklyn neighborhoods losing their homes over unpaid bills at a mere fraction of their properties’ value, sparking calls of outrage about the “overly broad and improper” use of the TPT program.

Many of the Crown Heights and Bed-Stuy homeowners who lost or nearly lost their homes are senior citizens who had made clerical errors. Others have lost millions of dollars worth of equity to the city for issues as minimal as late payments for water bills.

“This program, which was supposed to be used to help preserve affordable housing, has been a subterfuge to remove properties from homeowners who had their properties, in some cases, for more than thirty years,” said Brooklyn Borough President Adams who has helped lead the charge to investigate and curb the program.

Other elected officials calling for an investigation and reevaluation of the program include Councilmember Robert Cornegy of Bed-Stuy and Crown Heights, who argues the difference between the properties’ values and the charges owed to the city are grossly disproportionate; and State Senator Velmanette Montgomery , whose “ Deed Theft Bill ” aims to grant greater protections to home-owners either in default or foreclosure. Montgomery’s bill currently is pending Gov, Cuomo’s signature.

A $66 million ongoing lawsuit against HPD claims the TPT program is illegal. Pending this lawsuit, the program may be halted or reversed and the question of reparations would likely follow.

HPD, on the other hand, maintains that the program is a success:

“In addition to being an effective tax enforcement program, TPT has become a critical tool for protecting tenants, and is one that we can’t afford to lose in the midst of a dire affordability crisis,” said HPD commissioner Louise Carroll, as reported in the Brooklyn Daily Eagle.

What Is Deed Theft?

Instances of mortgage fraud or deed theft have swept through Brooklyn in recent years. Unlike TPT, deed theft is an outright illegal activity and punishable by law. Several activities may fall under the umbrella terms “ mortgage fraud ,” “ deed theft ” and “deed fraud” but an easy way to understand them is they occur primarily through deception.

Identity theft, scams, someone posing as a borrower, someone misrepresenting financial information — these are a few of the most common ways mortgage fraud and deed theft can manifest.

Scammers often target the elderly or homeowners who speak English as a second language, because they may be easier to manipulate. Scammers also target homeowners in financial distress, in debt or falling badly behind on taxes and bills, because they may be desperate for a quick fix to their monetary troubles.

Targeted homeowners may be aware of the threat of TPT and will take offers from schemers in order to avoid home foreclosure.

It is possible that scam artists are exploiting the confusion and tension surrounding the city’s TPT program, invoking it as an imminent threat while making offers, in order to steer homeowners into bad deals.

A recent example of deed fraud involves a man who had been tricked into selling the deed to his $1.5 million dollar home for $650,000 to a man claiming to help him with his debts.

In another instance , someone hired to care for an 85-year-old diabetic man convinced the senior to sign away the deed to his East New York home. The caretaker was indicted for grand larceny and identity theft in January, according to Gothamist.

If you are a homeowner in default or foreclosure, familiarize yourself with the rights granted to you under the Home Equity Theft Prevention Act (HETPA). The act means to protect you from illegitimate buyers.

And as always, maintain a healthy degree of skepticism if anyone shows up suddenly, offering to help you with financial problems.

The post Why So Many Black Property Owners in Central Brooklyn Are Losing Their Homes, Explained appeared first on National Association of Real Estate Brokers .

Study: African Americans underserved, overcharged by US banks

Sat, 17 Aug 2019 14:31:00 GMT

By Zack Budryk

The relative rarity of banks in nonwhite neighborhoods is exacerbating the racial wealth gap by leaving African Americans more reliant on expensive financial services such as payday lending institutions, according to Reuters, citing research by McKinsey & Co.

The study found that majority-white counties have an average of 41 financial institutions per 100,000 people, compared to 27 in non-white majority neighborhoods.

It also found banks in majority-black neighborhoods tend to require a higher minimum account balance, with an average minimum of $871 in black neighborhoods compared to $626 in white neighborhoods.

“Black families are being underserved and overcharged by institutions that can provide the best channels for saving,” McKinsey partners Shelley Stewart and Jason Wright wrote in the report.

Racial wealth disparities have widened in recent decades, according to Reuters. In 2016, the average white family had a net worth of $171,000, more than 10 times the median net worth of $17,600 among black families.

Closing the gap would bring a spike in investments and consumption that could increase gross domestic product as much as 6 percent by 2028, according to McKinsey.

The wealth gap has become an issue in the presidential race as well, with Sen. Elizabeth Warren (D-Mass.) publishing a plan to give $7 billion to minority entrepreneurs and expand the Community Reinvestment Act.

Sen. Kamala Harris (D-Calif.), meanwhile, issued a plan in July to invest $100 billion in black homeownership.

“We must right the wrong and, after generations of discrimination, give black families a real shot at homeownership, historically one of the most powerful drivers of wealth,” Harris said at the Essence Festival in New Orleans.

The post Study: African Americans underserved, overcharged by US banks appeared first on National Association of Real Estate Brokers .

Groundbreaking Initiative Shows Pathway to Propel Black Homeownership

Fri, 16 Aug 2019 22:01:00 GMT

By Mike Community Journal

Potential homebuyers turned out in droves to receive know-how, financial assistance through landmark program

While statistics may paint a grim picture of Black homeownership, a recent event in Baltimore laid out a clear path for turning those numbers around across the country.

Anyone questioning whether the Black community is primed to join the ranks of homeowners need only look to an innovative event in Baltimore that took place June 22. Nearly 700 people came away with the inspiration, education and motivation to make the goal of homeownership a reality when HomeFree-USA launched its Step Into Your Power: Prepare for Success Through Homeownership initiative to an enthusiastic audience of African American homebuyers in Baltimore City.

More than 500 homebuyers participated in a live event at the Reginald Lewis Museum, while an additional 166 participated via live stream and a second event that was held to accommodate the overflow crowd.

Homeownership is the number one wealth indicator and accounts for 92 percent of Black wealth. Yet, the Great Recession of 2008 wiped out 48 percent of that homeownership wealth and African-Americans are continuing to fall
even further behind in homeownership compared to other segments. In fact, the Black homeownership rate has fallen to the lowest level ever as of the first quarter of 2019, according to Census data.

With Black Americans making up 63.3 percent of Baltimore’s population, the decline in Black homeownership poses a particular threat to Charm City. Step Into Your Power is a groundbreaking way to turn those homeownership numbers around and the kickoff event showed that many Baltimore residents agree.

HomeFree-USA Founder Marcia Griffin welcomed attendees and talked candidly about the crisis in the Black community around the wealth gap, sharing how homeownership can help Black Americans improve their financial standing. HomeFree-USA also shared that homebuyers may be able to take advantage of up to $42,000 in financial assistance.

Some attendees pointed to the gentrification that has taken place in Washington, DC in the last few years and expressed their belief that Baltimore may realize the same fate. As a result, several attendees saw buying in Baltimore as an opportunity to both stop gentrification from pushing people from the city they love and a chance to be a homeowner in the city where they were born and raised.

Other attendees expressed their desire to buy a home so they can pass it down to their children and grandchildren.

Attendees also learned that organizations like HomeFree-USA can provide them with the financial education and the know-how to make their dream of homeownership a reality.

HomeFree-USA will host a series of Step Into Your Power events in Baltimore over the next 5 months designed to guide, educate, and coach first-time Baltimore City homebuyers to mortgage-readiness, default resistance and homeownership. Upon success in Baltimore, the initiative will be launched in other cities with a significant number of African American residents. One goal of the Step Into Your Power program is to get 10,000 African American families mortgage-ready around the country by the end of 2020.

Entrepreneur and educator Stedman Graham, author of the recently released book, Identity Leadership, delivered the keynote address in Baltimore and spoke about how one must learn to lead oneself before one can lead others. Graham has been teaching self-actualization principles that help people discover who they can be, and he brought those insights to energize Baltimore residents as they prepare for success.

Strong partnerships underscore the strength of the initiative and were highlighted at the event.

“Step into Your Power: prepare for success through homeownership is a terrific example of working together to make a positive impact toward boosting Baltimore City homeownership,” said Lisa Thomlinson, program manager with Wells Fargo Housing Philanthropy.

Wells Fargo showed its commitment to Baltimore by offering qualified homebuyers up to $15,000 for down payment and closing costs through a program called NeighborhoodLIFT. “Just as in many communities across the country, far too many families struggle with housing affordability in Baltimore,” Thomlinson says. “That’s why Wells Fargo teamed-up with HomeFree-USA and Stedman Graham to make a concerted effort to bring our business expertise forward and combine it with available resources including NeighborhoodLIFT Homeownership Counseling grants for interested homebuyers.”

Freddie Mac is also providing financial support to ensure that Step Into Your Power reaches as many potential homebuyers as possible. Step Into Your Power is a means for increasing the homeownership rate among African Americans and reducing the wealth gap in America. It also is designed to help Black Americans break the cycle of renting and begin to make homeownership an achievement that is passed down from generation to generation.

“This event marks the revival of the spirit to buy in Baltimore,” says Milan Griffin, Vice President of Marketing and Outreach for HomeFree-USA. “Thanks to Step Into Your Power, Baltimore residents see the opportunity homeownership presents and have a pathway to get there.”

Credits: Mike Community Journal

The post Groundbreaking Initiative Shows Pathway to Propel Black Homeownership appeared first on National Association of Real Estate Brokers .

Library exhibit explores Southwest’s history of racial displacement

Tue, 13 Aug 2019 19:33:00 GMT

By Zach Farber

Upstairs at the Linden Hills Library, a flat-screen television has been set up to serve as an interactive history exhibit. The screen displays an old hand-lettered, green-and-black map of Southwest Minneapolis . Scattered across the map are about a dozen big red dots, mostly clustered in the neighborhoods of Linden Hills and Lyndale.

Each dot represents the home of an African American family that lived in the area in the 1910s. A red dot for Willard M. Bugbee, a red dot for Harry and Clementine Robinson and a red dot for the family of Thomas West, an elevator operator who bought a house on Aldrich Avenue in 1908 and who the Twin City Star called “one of our most respected citizens.”

As visitors scroll down the TV screen and as the year turns from 1915 to 1920 to 1935, the red dots vanish from the map.

By 1940, black families had been entirely driven out of Linden Hills, the victims of white violence, racially restrictive housing covenants and discriminatory lending in government-backed mortgages. By 1960, Clyde and Daisy Edwards were the only black homeowners left in all of Southwest Minneapolis.

The interactive map is part of an exhibit called “Displaced,” on view at the library through July 11, which aims to illustrate “how racism reshaped settlement in Minneapolis.” Today, 75% of white Minneapolitans own homes compared with only 25% of black residents — the widest homeownership gap in any of the 100 American cities with the largest black populations.

The library exhibit expands on a show called “Owning Up: Racism and Housing in Minneapolis,” which opened last fall at the Hennepin History Museum . Co-curators Denise Pike and Maggie Mills, veterans of the University of Minnesota’s Mapping Prejudice project, said they hoped to tell the story with the new exhibit of how racist laws and practices have displaced not just African Americans but also Native Americans.

“There is a pattern of settler-colonialism and displacement of non-white people from areas to make land more valuable and appealing for white residents,” Pike said. “We wanted to show this was an on-going, long-term pattern.”

Pike and Mills compiled newspaper clippings, photographs, paintings and atlas pages to spell out the similarities between anti-black racism and the Minnesota Legislature’s decision to exile the region’s indigenous communities following the U.S.-Dakota War of 1862.

“Owning Up” told the story of the racist housing covenants that explicitly banned the sale of at least 20,000 Hennepin County homes to African Americans and members of other minority groups between 1910 and 1960. Mills said that some viewers wondered why the covenants did not include language banning indigenous people.

“What you’re seeing put into covenant language is the racial fears of that moment, and there wasn’t a racial fear of Native Americans because they had already been expelled,” she said. “This is the lineage of white supremacy.”

Four hanging panels in the exhibit give facts about the Dakota concentration camp that once stood near Fort Snelling, and about Minneapolis’ racial disparities and history of redlining and white violence, before prompting viewers to consider questions like “How has your life been shaped by race?” and “Why did you choose to live in your neighborhood?”

The exhibit suggests visitors learn more by reading books like Claudia Rankine’s Citizen or watching videos like the TPT documentary “Jim Crow of the North,” which will be shown at the library on July 11. When the exhibit ends, three of the hanging panels will travel to Washburn Library; a panel focused on Linden Hills will stay on permanently.

Pike, who graduated from the University of Minnesota this May with a master’s degree in heritage studies and public history, said her work detailing the Twin Cities’ history of racial displacement has been personally meaningful.

In 1993, when she was 4 years old, she lived in a St. Louis Park duplex with her white mother and her Nigerian father. Another African American family lived in the adjoining unit.

Pike was too young to remember the day when someone attempted to burn a cross on their garage but she still recalls “the tension and fear my parents had.” (The culprit was never caught.)

“This speaks to some of these incidents we see historically with racial housing discrimination,” she said. “Sometimes when there’s one African American family, it’s okay, but the moment another black family tries to move in, there’s this tide shifting and people get really motivated to try to expel these black families.”

Teresa Mercier, the supervisor of the Linden Hills Library, said she hopes the exhibit will get people thinking about how opportunities can be created for people of color to move into Linden Hills, which is currently about 88% white.

“People aren’t bad for living in Linden Hills,” she said, “but they need to understand that things have happened in the past to create the community we have today.”

Credits: Zac Farber | Southwest Journal

The post Library exhibit explores Southwest’s history of racial displacement appeared first on National Association of Real Estate Brokers .

Bank of America Launches $5 Billion Home Loan Assistance Program

Mon, 12 Aug 2019 20:00:00 GMT

By Stacy M. Brown, NNPA Newswire Correspondent

Bank of America officials have spent the past few months asking their customers and clients a simple question – what would you like to have the power to do?

“For many, the goal is to own a home and saving up for a down payment is the biggest barrier for anyone to buy a home,” said Richard Winter, the vice president and Area Lending Manager for Bank of America’s Baltimore region.

The banking giant has committed to removing that barrier with the announcement of a new $5 billion affordable homeownership initiative for low-to-moderate-income and multicultural homebuyers across the country.

“Our commitment to affordable and responsible homeownership is greater than ever, with half of our loans going to low- to moderate-income or multicultural families and communities,” D. Steve Boland, head of consumer lending at Bank of America, said in a statement.

“One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach,” Boland said.

Over the next five years the bank has committed $5 billion to its Bank of America Neighborhood Solutions program which they said will help more than 20,000 individuals and families thrive through the power of homeownership.

The Neighborhood Solutions program focuses on helping put people on the path to affordable homeownership and sustainable homeownership through a combination of specially-designed products, resources and expertise.

The bank is also offering a new Affordable Loan Solution mortgage – a competitive fixed-rate loan for low- and moderate-income borrowers.

Primarily targeting first-time buyers, the down payment on the Affordable Loan Solution mortgage would be as little as 3 percent, with no mortgage insurance required.

“Through our new Down Payment Grant program, Bank of America will give – no repayment necessary – eligible homebuyers 3 percent of the home purchase price (up to $10,000) to be used for a down payment,” Winter said.

Homeownership for Black households is near a 50-year low

The program arrives at a time when various studies and reports, including one from the National Association of Real Estate Brokers (NAREB), show that all the gains made by Black homeowners since the Civil Rights era have been erased.

The homeownership rate for Black households ended 2016 at 41.7 percent, near a 50-year low, according to the U.S. Census Bureau – a figure NAREB said hadn’t been this low since the time when housing discrimination was legal.

The current Black homeownership rate is now 30.5 percentage points lower than non-Hispanic whites (72.2 percent) and 22 percentage points lower than the national homeownership rate of 63.7 percent.
It’s also 4.6 percentage points lower than the Hispanic homeownership rate.

“We have long been committed to providing a path to sustainable homeownership for all, but especially for low- to moderate-income (LMI) and multicultural clients,” Winter said.

“Homeownership is one of the most powerful ways to shrink the wealth gap,” he said, noting that the median net worth of a homeowner is 44 times that of a renter, according to a 2017 Federal Reserve report.

“Today, more than half our loans go to LMI and multicultural clients, but we know we can do more,” Winter said.

The new Bank of America program includes down payment and closing cost assistance; innovative low down payment mortgages; grants that can be applied to non-recurring closing costs; a national network of lending professionals; easy-to-understand financial education tools; strategic partnerships with real estate professionals; and a national network of knowledgeable affordable housing nonprofit partners who provide in-depth homebuyer education and counseling.

“We know that many people today can afford a monthly mortgage payment, but that securing the upfront costs of homeownership can be a significant challenge,” Winter said.

“We also know that low down payment loans on their own aren’t going to solve the biggest barrier to homeownership, so our new Down Payment Grant program, along with our existing closing cost grants we believe will make an even greater difference, particularly since eligible clients can combine programs to reduce upfront costs,” he said. priligy 60 mg recensioni

The most important thing for Baltimore residents to know about the program is that there are many options available, Winter said.

“Anyone who is thinking about buying a home should go to bankofamerica.com and make an appointment with one of our mortgage specialists at a nearby financial center and they can walk them through all the options that are available,” he said.

Credits: Stacy M. Brown | The Skanner

The post Bank of America Launches $5 Billion Home Loan Assistance Program appeared first on National Association of Real Estate Brokers .

Five Key Facts That Underscore The Alarming Crisis In Black Homeownership

Mon, 12 Aug 2019 15:12:00 GMT

By Brenda Richardson

For many black households, the housing crisis never ended. While 73.1% of white Americans owned homes as of the second quarter of 2019, a record low of 40.6% of black Americans had achieved homeownership and 46.6% of Hispanic Americans.

The resulting 32.5 percentage-point gap in homeownership between black and white Americans is 3.6 points wider than it was at the beginning of 2010, according to a new report by real estate brokerage Redfin.

“With higher unemployment rates and less wealth to begin with, black Americans were less able to buy homes even when prices were at their lowest point, meaning many missed out on opportunities to build wealth and put down roots in their communities through homeownership,” said Redfin chief economist Daryl Fairweather.

The hard-won gains that black homeowners made after the Fair Housing Act was passed in 1968 have been virtually erased. This trend will affect the retirement outlook for black Americans and their ability to pass wealth to the next generation of black home buyers, according to a housing report by the Urban Institute .

“Unless this setback to black homeownership is addressed, black families will rent for more years before homeownership than they did a few years ago,” the report stated. “This will shrink the landscape of housing choices available to black families, increase their exposure to displacement, and delay or close off a key wealth-building mechanism. All three of these outcomes will widen the inequality that underlies so many current struggles.”

Here are five facts that underscore the current crisis in black homeownership.

Student loan debt weighs heavily on black graduates. Many families see education as a ladder to success, but student debt can contribute to the homeownership gap. Many black Millennials find themselves drowning in student debt despite making regular payments, according to a July report by the Center for Responsible Lending, which noted that because of the racial wealth and income gaps, black students face challenges paying for higher education, whether or not they complete their degree.

The report states that for black borrowers who entered higher education in 2003–2004 as undergraduates, almost 49% had defaulted by 2016. Up to 70% of this cohort is projected to default by 2024.

Renting the American dream. The foreclosure crisis caused a historic number of owners to lose their homes, becoming renters involuntarily, according to the Brookings Institution, a non-profit public policy organization.

“Homeownership offers some financial advantages over renting,” a February Brookings report states, adding that “making regular payments on an amortizing mortgage is a forced savings mechanism, meaning that homeowners are paying down debt and accumulating equity with each payment. By contrast, rent payments only cover the consumption value of housing and do not accumulate savings.”

Black borrowers are also less likely to meet the traditional credit standards necessary to qualify for a mortgage. However, rental payments can now be reported to the three credit reporting agencies, Experian, Equifax and TransUnion. The newest credit scoring models use rental payment data when calculating credit scores, according to an Experian report , which explains how to get the reporting process started.

If recent housing trends continue, an Urban Institute report states that black Americans born between 1965 and 1975 will likely become “part of the first generation since those born before 1900 to reach retirement age with more renters than homeowners among their community.”

The report adds that “reforms are needed that provide more affordable rental housing and more plentiful and secure access to homeownership.”

Ralph McLaughlin, deputy chief economist at CoreLogic, a real estate and data analytics provider, said the fact that blacks typically have higher rental rates than whites also has dire implications for black homeownership.

“African American households tend to be overwhelmingly renters,” he said. “When you couple a shortage of homes on the owner-occupancy side with a rental market that up until now has been pretty robust, it makes it very difficult to save for a down payment if your rents are going up faster than your incomes.”

Starter homes are scarce. Prices for the most affordable homes around the country are rising faster than they are for the most expensive homes.

“People who have been boxed out of homeownership, and who are finally starting to feel that the economy has reached them, it’s reaching them all at the same time,” said Fairweather. “There’s a lot of competition for starter homes. That’s why prices have gone up so much for those homes.”

Home equity gap widens. In part as a result of the inequality in homeownership and home equity gains, black Americans have seen their median net worth decline in the past decade while for white Americans it rose by double digits, according to Redfin. The median net worth for blacks dropped 2.8% to $17,100 in 2016 from $17,600 in 2010. That leaves the typical black American more than $10,000 short of the 20% down payment ($27,980) likely needed to purchase a median-priced home in Detroit, for example, one of the most affordable major housing markets in the nation.

According to a report by the Urban Institute , “Black homebuyers bought homes at the peak of the bubble at higher rates than whites and Asians, having often been offered subprime loans even when they qualified for prime loans.”

As a consequence, Fairweather said, “The growing racial homeownership gap has widened the wealth gap, as home equity remains one of the most significant wealth-building tools. And now, with higher home prices and tighter lending standards than before the housing crash of 2008, it’s more difficult than ever for minorities to break into the housing market. That’s likely to contribute to growing economic inequality in the U.S.”

Blacks are under-represented in high-paying job sectors. The unemployment rate for black Americans is nearly double the rate for white Americans. McLaughlin believes weak income growth in the black community must be addressed.

“Many of the challenges African American households face in the housing market don’t necessarily have to do with current redlining activity,” he said. “It’s really going to be more broader challenges in not benefiting from an expanding U.S. economy, not benefiting from wage growth, not benefiting from job growth, not benefiting from getting into industries that are growing and that are high paid. African Americans are far less represented in the high-tech sector, which tends to be higher paid than other industries.”

Outreach and counseling. Housing counseling is an effective way to eliminate barriers for black households and prepare them for sustainable homeownership. A new survey by NeighborWorks America finds that while many people are interested in homeownership, minority families, particularly blacks and Hispanics, find that they are missing the financial planning skills and knowledge to become homeowners. NeighborWorks recommends potential home buyers work with a housing counselor who can provide information about down payment assistance programs and get them on the right path.

At the end of 2018, the Urban Institute convened a group of diverse stakeholders to discuss persistent issues that affect black homeownership and how to move from evidence toward action. Five strategic priorities emerged on how to begin to reduce the gap and build bridges toward change: advance policy solutions at the local level; tackle housing supply constraints and affordability; promote an equitable and accessible housing finance system; further outreach and counseling for renters and mortgage-ready Millennials; focus on sustainable homeownership and preservation.

Credits: Brenda Richardson | Forbes

The post Five Key Facts That Underscore The Alarming Crisis In Black Homeownership appeared first on National Association of Real Estate Brokers .

Systemic Inequality: Displacement, Exclusion, and Segregation

Fri, 09 Aug 2019 17:51:00 GMT

How America’s Housing System Undermines Wealth Building in Communities of Color

By Danyelle Solomon , Connor Maxwell , and Abril Castro

This report is part of a series on structural racism in the United States.

Authors’ note: CAP uses “Black” and “African American” interchangeably throughout many of our products. We chose to capitalize “Black” in order to reflect that we are discussing a group of people and to be consistent with the capitalization of “African American.”

Introduction and summary

Homeownership and high-quality affordable rental housing are critical tools for wealth building and financial well-being in the United States. Knowing this, American lawmakers have long sought to secure land for, reduce barriers to, and expand the wealth-building capacity of property ownership and affordable rental housing. But these efforts have almost exclusively benefited white households; often, they have removed people of color from their homes, denied them access to wealth-building opportunities, and relocated them to isolated communities. Across the country, historic and ongoing displacement, exclusion, and segregation continue to prevent people of color from obtaining and retaining their own homes and accessing safe, affordable housing.

For centuries, structural racism in the U.S. housing system has contributed to stark and persistent racial disparities in wealth and financial well-being, especially between Black and white households. In fact, these differences are so entrenched that if current trends continue, it could take more than 200 years for the average Black family to accumulate the same amount of wealth as its white counterparts. While homeownership and affordable housing are not a panacea for eliminating entrenched racial inequality, lawmakers must make amends for past and present harms by enacting new laws designed to expand access to prosperity for all Americans.

This report examines how government-sponsored displacement, exclusion, and segregation have exacerbated racial inequality in the United States. It first looks at how public policies have systematically removed people of color from their homes. It then considers how federal, state, and local policies have fortified housing discrimination. The final section of the report proposes targeted solutions that would help make the U.S. housing system more equitable.

American public policy systematically removes people of color from their homes and communities

In 1845, the term “manifest destiny” emerged to describe the commonly held belief that white settlement and expansion across North America was inevitable and even divinely ordained. But long before then, this ideology provided the justification for ethnic cleansing and systematic displacement. In many ways, it continues to inform policymaking to this day. This section considers examples within Native American and Black communities.

Displaced centuries ago, Native American communities continue to face disparities

Although American public policies had intentionally displaced people of color for centuries prior, two of the most well-known examples are the Indian Removal Act and the Dawes Act. President Andrew Jackson signed the Indian Removal Act into law in 1830, authorizing the federal government to forcibly relocate Native Americans in the southeast in order to make room for white settlement. For the next two decades, thousands of Native Americans died of hunger, disease, and exhaustion on a forced march west of the Mississippi River—a march now known as the “Trail of Tears.” Decades later, in 1887, President Grover Cleveland signed into law the General Allotment Act—better known as the Dawes Act. The Dawes Act forcibly converted communally held tribal lands into small, individually owned lots. The federal government then seized two-thirds of reservation lands and redistributed the land to white Americans. Native American families who were allotted land were encouraged to take up agriculture despite the fact that much of the land was unsuitable for farming and many could not afford the equipment, livestock, and other supplies necessary for a successful enterprise. The result was the erosion of tribal traditions, the displacement of thousands of families, and the loss of 90 million acres of valuable land.

But the systematic removal of Native Americans did not end in the 1800s: Between 1945 and 1968, federal laws terminated more than 100 tribal nations’ recognition and placed them under state jurisdiction, contributing to the loss of millions of additional acres of tribal land. During this period, lawmakers again encouraged Native Americans to relocate—this time from reservations to urban centers, resulting in economic hardships and housing instability.

While tribal nations have experienced a resurgence in self-governance and self-determination in recent decades, the legacy of displacement, oppression, and neglect in American public policy affects Native communities to this day. (see Figure 1) Native people endure some of the highest levels of financial insecurity in the country. In 2017, more than 1 in 5 American Indian and Alaska Native (AI/AN) people—22 percent—lived in poverty, compared with just 8 percent of white Americans. AI/AN people are also less likely than their white counterparts to own their own homes and are more likely to be burdened by the cost of housing. (see Figure A1) Even when AI/AN people do own homes, they are often worth less than those of their white counterparts; the median home value for AI/AN people is $135,200, while the median home value for white people is $219,600. These blatant disparities in housing and economic well-being are due, in part, to past public policies informed by manifest destiny that stripped Native communities of land, wealth, and opportunity.

Centuries of displacement have destabilized Black communities and undermined their access to opportunity

While Native Americans have long been the primary target of government-sponsored land redistribution, other communities of color—especially Black communities—have experienced and continue to experience displacement as well. For Black communities in urban areas, public policies have often been enacted under the guise of creating new public spaces, combating urban blight, or bolstering economic development. But over time, these policies have stripped Black communities of the wealth and financial stability found in property ownership and affordable rental housing. For example, in the early 1850s, New York City lawmakers used eminent domain to destroy a thriving predominantly Black community in Manhattan, displacing thousands of residents in order to create the public space known today as Central Park. And just 30 years ago, Atlanta lawmakers demolished the United States’ oldest federally subsidized affordable housing project, displacing more than 30,000 predominantly Black families to create Centennial Olympic Park. These are just two examples of the countless policies that have displaced Black communities for the so-called benefit of the greater population. But there is scant evidence that Black Americans see long-term benefits from these revitalization efforts.

For much of the 20th century, federal, state, and local policies subsidized the development of prosperous white suburbs in metropolitan areas across the country. They also constructed new highway systems—often through communities of color—to ensure access to job opportunities in urban centers for primarily white commuters. Over time, however, changing tastes and growing displeasure with congested roadways have resulted in middle-class and wealthy white households’ relocation to cities. As lawmakers rush to redevelop previously neglected urban neighborhoods, many of the same communities of color that were denied access to suburban homeownership and displaced by highway projects are again being forced from their homes to make room. Indeed, although lawmakers could construct more affordable housing units and create programs to insulate longtime city residents from the disruptive effects of gentrification, many appear to draw heavily from the ideology of manifest destiny—that white settlement and expansion are inevitable—in their responses to such rapid redevelopment.

Merriam-Webster defines gentrification as “the process of repairing and rebuilding homes and businesses in a deteriorating area … accompanied by an influx of middle-class or affluent people and that often results in the displacement of earlier, usually poorer residents.” Over the past 50 years, this process, which sometimes involves government investment, has taken root in dozens of cities across the country. Increasing demand for housing, along with reduced levels of housing production, has contributed to staggering increases in rental and purchase prices in urban areas across the United States. While some experts cite the economic benefits of gentrification, many recognize its role in exacerbating racial inequality, as well as in the suburbanization of poverty as low-income people are forced to relocate from cities to the areas outside them.

Nowhere are the effects of gentrification more noticeable than the nation’s capital, Washington, D.C. Between 1970 and 2015, Black residents declined from 71 percent of the city’s population to just 48 percent. The city’s white population increased by 25 percent during the same period. From 2000 to 2013, the city endured the nation’s highest rate of gentrification, resulting in more than 20,000 African American residents’ displacement. Today, almost 1 in 4 Black Washington residents—23 percent—live in poverty. By contrast, just 3 percent of white Washington residents live in poverty—a lower white poverty rate than in any of the 50 states. Without intervention, present trends will likely persist, further diminishing homeownership and affordable rental opportunities for long-time Washington residents.

American lawmakers have long touted the importance of property ownership, affordable housing, and economic development. However, policymaking has too often coincided with the systematic removal of people of color from their homes and communities. Historic and ongoing displacement has destabilized communities and exacerbated racial disparities in economic indicators of well-being. These government policies, combined with the exclusion and segregation discussed in the following section of this report, are causes and consequences of entrenched structural racism in the U.S. housing system.

Federal, state, and local policies have fortified housing discrimination

For decades, governments and private citizens have employed exclusionary tactics to prevent African Americans and other people of color from building wealth through homeownership and affordable housing. Whether through formal policy decisions or a persistent failure to enact and enforce civil rights laws, government action and inaction continues to undermine prosperity in communities of color.

Exclusion from federal homeownership programs undermined Black families’ wealth accumulation in the 20th century

As noted in a recent Center for American Progress report, “Racial Disparities in Home Appreciation,” the federal government established several programs in the 20th century that were designed to promote homeownership and provide a pathway to the middle class. However, these programs largely benefited white households while excluding Black families.

In 1933 and 1934, in the midst of the Great Depression, President Franklin Delano Roosevelt signed the Home Owners’ Loan Act and the National Housing Act into law to prevent foreclosures and make rental housing and homeownership more affordable. To carry out these missions, the newly minted Home Owners Loan Corporation (HOLC) created maps to assess the risk of mortgage refinancing and set new standards for federal underwriting. The Federal Housing Administration (FHA) used these maps to determine the areas in which it would guarantee mortgages. But HOLC maps assessed risk in part based on a neighborhood’s racial composition, designating predominantly nonwhite neighborhoods as hazardous, and coloring these areas red. This process, known as redlining, denied people of color—especially Black people—access to mortgage refinancing and federal underwriting opportunities while perpetuating the notion that residents of color were financially risky and a threat to local property values. As a result, just 2 percent of the $120 billion in FHA loans distributed between 1934 and 1962 were given to nonwhite families. Today, approximately 3 in 4 neighborhoods—74 percent—that the HOLC deemed “hazardous” in the 1930s remain low to moderate income, and more than 60 percent are predominantly nonwhite. In short, while federal intervention and investment has helped expand homeownership and affordable housing for countless white families, it has undermined wealth building in black communities.

In 1944, President Roosevelt signed into law the Servicemen’s Readjustment Act—commonly referred to as the GI Bill—which provided a range of benefits, such as guaranteed mortgages, to veterans of World War II. However, according to historian Ira Katznelson, “the law was deliberately designed to accommodate Jim Crow.” For instance, the GI Bill allowed local banks to discriminate against Black veterans and deny them home loans even though the federal government would guarantee their mortgages. In Mississippi, just two of the 3,000 mortgages that the Veteran’s Administration guaranteed in 1947 went to African Americans, despite the fact that African Americans constituted half of the state’s population. While the GI Bill paved the way for millions of predominantly white veterans to enter the middle class, it also further entrenched the United States’ racial hierarchy.

Federal home loan programs allowed households—the majority of them white—to build and transfer assets across generations, contributing to glaring racial disparities in homeownership and wealth. (see Figure 2) Today, households of color remain less likely to own their own homes when compared with white households, even after controlling for protective factors such as education, income, age, geographical region, state, and marital status. The disparity between Black and white households is particularly pronounced. (see Figure 3) Just 41 percent of Black households own their own home, compared with more than 73 percent of white households. In fact, college educated Black people are less likely to own their own homes than white people who never finished high school. Intentional exclusion from federal programs has produced structural barriers to homeownership that continue to undermine wealth accumulation in communities of color. Today, the typical white household has 10 times more wealth than the typical Black household.

Lawmakers have abdicated their responsibility to enact and fully enforce civil rights protections

For much of the 20th century households of color were systematically excluded from federal homeownership programs, and government officials largely stood by as predatory lenders stripped them of wealth and stability.

In the decades preceding the Fair Housing Act, government policies led many white Americans to believe that residents of color were a threat to local property values. For example, real estate professionals across the country who sought to maximize profits by leveraging this fear convinced white homeowners that Black families were moving in nearby and offered to buy their homes at a discount. These “blockbusters” would then sell the properties to Black families—who had limited access to FHA loans or GI Bill benefits—at marked-up prices and interest rates. Moreover, these homes were often purchased on contracts, rather than traditional mortgages, allowing real estate professionals to evict Black families if they missed even one payment and then repeat the process with other Black families. During this period, in Chicago alone, more than 8 in 10 Black homes were purchased on contract rather than a standard mortgage, resulting in cumulative losses of up to $4 billion. Blockbusting and contract buying were just two of several discriminatory wealth-stripping practices that lawmakers permitted in the U.S. housing system.

A recent CAP report, “Racial Disparities in Home Appreciation,” highlighted that although the Fair Housing Act banned discriminatory housing practices, many lenders continue to unfairly target people of color with limited federal, state, and local oversight or accountability. At the turn of the century, banks disproportionately issued speculative loans to Black and Latinx homebuyers, even when they qualified for less risky options. These “subprime loans” had higher-than-average interest rates that could cost homeowners up to hundreds of thousands of dollars in additional interest payments. During the financial crisis, Black and Latinx households lost 48 percent and 44 percent of their wealth, respectively, due in part to these practices.

People of color continue to endure rampant discrimination in the housing market: 17 percent of Native Americans, 25 percent of Asian Americans, 31 percent of Latinos, and 45 percent of African Americans report experiencing discrimination when trying to rent or buy housing. (see Figure 4) By contrast, just 5 percent of white Americans report experiencing housing discrimination. Racial bias not only undermines access to housing but can also affect property values. One study found that homes in Black neighborhoods were undervalued by an average of $48,000 due to racial bias, resulting in $156 billion in cumulative losses nationwide. Clearly, federal, state, and local lawmakers could do more to ensure that all Americans—regardless of background—have access to homeownership and affordable housing.

Racial segregation is the direct result of intentional government policy, not individual choice

More than 50 years after the Fair Housing Act’s passage, most American communities remain segregated by race. Existing residential patterns are largely not the result of personal preference among people of color to live in ethnic enclaves, but rather centuries of policies enacted by lawmakers on every level. Racial segregation has contributed to persistent disparities in access to public goods—such as parks, hospitals, streetlights, and well-maintained roads—and has undermined wealth building in communities of color nationwide.

Perhaps the clearest—but least recognized—example of government-backed segregation was the creation of Chinatowns across the continental United States. More than 150 years ago, thousands of Chinese immigrants arrived in the American West to construct the first transcontinental railroad and participate in the California gold rush. But as they moved into urban areas in search of work, they were met by violent and xenophobic resistance. Lawmakers largely stood by as mobs terrorized Chinese communities and even enacted legislation that restricted Chinese immigrants’ employment opportunities, limited their mobility, and prohibited them from voting or purchasing property. With few safe housing options available, Chinese residents concentrated in ethnic ghettos that demanded almost complete self-sufficiency to survive. Chinatowns were generally not created as the result of a natural tendency to self-segregate, but rather due to various federal, state, and local policies prohibiting Chinese Americans from fully participating in the United States’ housing and employment markets.

During this period, lawmakers also enacted policies to separate African Americans from white Americans. Long before redlining offered an economic incentive to segregate communities, local governments relied on, among other policies, zoning ordinances to keep races apart. Explicit race-based zoning emerged in 1910 with formal prohibitions on African Americans purchasing property on majority-white blocks, and vice versa. While the U.S. Supreme Court outlawed race-based zoning in 1917, its rationale—that the practice limited white homeowners’ ability to sell their property—encouraged localities to develop innovative new segregation strategies.

The harmful effects of government-backed segregation also produced racial inequities in access to public spaces, public goods, and increased exposure to environmental hazards. Communities of color often have less access to grocery stores, child care facilities, and other important neighborhood resources. They are also more likely to have hazardous waste facilities in close proximity. These disparities—along with the chronic devaluation of Black-owned property—contribute to differences in home values and appreciation. While the median white homeowner’s property is worth $219,600, the median Black homeowner’s property is worth just $152,700. As noted in CAP’s recent report, white homeowners also have more than double the mean net housing wealth—home value minus debt—of Black homeowners: $215,800 compared with just $94,400. Overall, segregation fueled the wealth-building capacity of white communities while simultaneously undermining wealth accumulation and economic well-being in communities of color.

Conclusion

Across the country, historic and ongoing displacement, exclusion, and segregation prevent people of color from obtaining and retaining homeownership, as well as accessing safe, affordable housing. Even when they succeed in purchasing their own homes, people of color—especially Black people—often experience lower returns on their investment. They are also more likely to experience foreclosure, often due to predatory lending practices. favicongenerator.org In addition, the cost of rental housing has outpaced wages and destabilized longtime residents’ ability to afford their homes.

While homeownership and affordable rental housing are not panaceas for addressing entrenched structural inequality, it is clear that lawmakers must make amends for past and present harms inflicted on communities of color in the U.S. housing system. CAP has previously called on lawmakers to significantly expand the supply of affordable units and dismantle existing exclusionary zoning practices. These efforts must also coincide with policies that promote access to resources and opportunity among residents of color. Moreover, lawmakers should support robust civil rights enforcement in the housing market by fully implementing the Affirmatively Furthering Fair Housing rule, applying disparate impact assessments to housing discrimination cases, and modifying the mortgage appraisal process. Lawmakers should also reexamine current Federal Emergency Management Agency and disaster relief regulations to promote environmental justice and equitable recovery policies.

These policies will not make amends for centuries of injustice in the housing market; however, they would represent affirmative steps toward racial equity in the U.S. housing system.

Credits: Center For American Progress

The post Systemic Inequality: Displacement, Exclusion, and Segregation appeared first on National Association of Real Estate Brokers .

NAREB President Sets Agenda Urging Millennials to Build Wealth Through Homeownership

Mon, 05 Aug 2019 18:09:00 GMT

Washington, DC – August 5, 2019 – During his speech on August 1st at the conclusion of the 72nd Annual NAREB Convention held in Atlantic City, NJ, Donnell T. Williams, newly installed as the 31st president of the National Association of Real Estate Brokers (NAREB) set a bold, yet targeted agenda to increase Black wealth through homeownership with a special focus on reaching the country’s millennials. NAREB’s national meeting convened just days after the U.S. Census Bureau released its second quarter 2019 homeownership rates which listed the Black homeownership rate at 40.6% the lowest it has been in more than 50 years. In comparison, the non-Hispanic White homeowner rate was 73.1%, representing more than a 30% gap.

“Bold, energetic and effective action must be taken to stop this unthinkable slippage in Black wealth. Homeownership and investment in real estate represent the tools Black Americans in general, and millennials in particular can use to build or rebuild their wealth,” said Donnell Williams, taking the helm of NAREB, the nation’s oldest minority professional real estate organization. “My plan to reverse the downward slide is to reach the 1.7 million mortgage-ready Black millennials who make over $100,000 annually, but have delayed or not considered homeownership as part of their wealth building strategy,” Williams stated.

Several initiatives were outlined in Mr. Williams’ speech that speak to the millennial demographic. One program in particular drew much applause from the audience when he said, “Our people need to know that you’re in violation if you drive a Land Rover and you pay rent to a landlord.” The initiative, www.housethenthecar.com launches shortly and concentrates its financial focus on attracting millennials and Gen-X-ers to homebuying or real estate investment opportunities to build sustainable wealth.

Mr. Williams emphasized that NAREB’s member Realtists must embolden themselves as well as their potential customers. He said, “We must Educate, Empower, and Mobilize ourselves as well as the Black American public. Wealth building through homeownership is indeed possible and we need to make that happen.” Mr. Williams is not new to the real estate profession.

First licensed as an agent in 1992 serving the Northern New Jersey area, he established his brokerage Destiny Realty in 2001 in Morristown, NJ with a satellite office in Newark, NJ, now one of the largest Black American, independently owned real estate brokerages in the state.

# # # # #

Download Press Release

The post NAREB President Sets Agenda Urging Millennials to Build Wealth Through Homeownership appeared first on National Association of Real Estate Brokers .

HUD to propose more hurdles to prove housing discrimination

Mon, 05 Aug 2019 15:48:00 GMT

By KATY O’DONNELL

The Department of Housing and Urban Development is circulating a proposal to make it more difficult to bring discrimination claims under the Fair Housing Act.

The update to HUD’s 2013 disparate impact rule would require plaintiffs to meet a five-step threshold to prove unintentional discrimination, replacing the current three-step “burden-shifting” approach. It would also give defendants more leeway to rebut the claims, according to a copy of the proposal obtained by POLITICO

It’s the latest effort by the Trump administration to roll back the Obama administration’s use of disparate impact — the legal theory that holds business and governments accountable for practices that disproportionately affect minorities even if no discrimination was intended — to root out discrimination.

Under the proposed rewrite, plaintiffs would have to establish that the challenged practice or policy is “arbitrary, artificial and unnecessary” and allege a “robust causal link” between the practice and the disparate impact.

“Claims relying on statistical disparities must articulate how the statistical analysis used supports a claim of disparate impact by providing an appropriate comparison which shows that the policy is the actual cause of the disparity,” the proposal states.

Plaintiffs would also have to show that the practice adversely affects members of a protected class as a group, not just an individual who happens to be a member of a protected class.

The fourth step would require the plaintiffs to show the disparity is “significant,” and the fifth would call on them to show that the “complaining party’s alleged injury is directly caused” by the challenged practice.

In cases where an algorithm is alleged to be the cause of the discriminatory effect, a defendant can rebut the claim by providing the inputs to the model and showing that “these factors do not rely in any material part on factors which are substitutes or close proxies for protected classes … and that the model is predictive of credit risk or other similar valid objective.” https://ebiteua.com/prostitutka-odessa

HUD says its proposal brings its interpretation of the disparate impact standard in line with a 2015 Supreme Court ruling.

The high court held that disparate impact claims can be brought under the Fair Housing Act but said “disparate impact liability must be limited so employers and other regulated entities are able to make the practical business choices and profit-related decisions that sustain a vibrant and dynamic free-enterprise system.”

HUD submitted the proposal to Congress on Monday for a 15-day review period. The public will have 60 days to comment once it is published in the Federal Register.

The post HUD to propose more hurdles to prove housing discrimination appeared first on National Association of Real Estate Brokers .

Black Entrepreneur Who Opened Three Real Estate Firms in 5 Years Speaks at NAREB National Convention

Mon, 05 Aug 2019 15:06:00 GMT

Tamairo Moutry, a successful entrepreneur and real estate mastermind, has opened three real estate companies in less than 5 years, and is opening her next one in Illinois before the end of this year. She was a guest speaker on the Independent Real Estate Broker panel at this year’s NAREB national convention.

Atlanta, GA — Tamairo Moutry is a very successful African-American real estate broker from Milwaukee, Wisconsin. She made headlines earlier this year because she was able to open her 3rd real estate company in less than 5 years, and will be adding another one in the state of Illinois before the year ends. She is the CEO of Milwaukee’s Best Real Estate Services, Georgia’s Best Real Estate Services, and Florida’s Best Real Estate Services. She also recently became the NAREB President for the Milwaukee Chapter that had been defunct for the last ten years.

Tamairo recently attended the NAREB national convention , held in Atlantic City, New Jersey, where she was a featured guest speaker on the Independent Real Estate Broker panel. She literally blew the audience away with the valuable knowledge that she shared. As a humble entrepreneur, she also took advantage of the event’s powerful networking opportunities, and attended many educational meetings and training workshops. One specific and very important training that Tamairo attended was the Faith Based Certification Training: Engaging the Black Church workshop .

Since being featured on BlackNews.com earlier this year , Tamairo has received several business opportunities. She has also received more clients, and agents joining her real estate firms in the 3 states that she’s currently licensed in. Most recently, Tamairo was a guest speaker on July 13th in Atlanta for a non-profit organization called All Women S.H.I.N.E. She even started a real estate radio show in Atlanta called “Let’s Talk Real Estate” earlier this year.

Unfortunately, Tamairo was unable to continue the show due to her busy work schedule. Tamairo is now working on a new real estate magazine. She was the Keynote Speaker for a 1st Annual Real Estate Women’s Retreat on April 29, 2019 in Port St. Lucie, Florida. The group owner, Ella Blaine of the popular Facebook Group called, Real Estate Ladies Rock reached out to Tamairo, after she saw the press release. Ella asked Tamairo to come and speak to many women Real Estate Agents who came from several states to learn, and to share ideas. The event was held to help Agents with marketing ideas, and to create their own opportunities. Tamairo met an Agent, Wyevetra Jordan at the retreat. Wyevetra Jordan was so moved by Tamairo’s speech, that within just this past week, Wyevetra has asked Tamairo to come and speak to her team in Washington DC.

Tamairo’s next keynote speaking event will be held with Wyevetra in Washington DC. between October and November of 2019. People from several different states have been offering Tamairo even more speaking engagements. Tamairo will be featured on an upcoming TV show called Who’s Got Curves? which will be filmed in Atlanta at the beginning of September 2019. This show will put the focus on plus sized women. On one of the episodes, the women will be competing to be the brand ambassador for one of Tamairo’s real estate firms, Georgia’s Best Real Estate Services. Rachatvotrevoiture.com – Rachat de véhicule sans contrôle technique Let’s watch for that! She has been in talks to be filmed on HGTV, for House Hunters. However, again, Tamairo has said that she will reach back out to them when she can make the time to film and appear on the show.

Connect with Tamairo and her company on Facebook:

Florida – www.facebook.com/floridasbestrealestate

Milwaukee – www.facebook.com/milwaukeesbestrealestate

Georgia – www.facebook.com/georgiasbestrealestate

PRESS CONTACT:

Tamairo Moutry | tamairo.moutry@gmail.com | 678-861-8885

Credits: BlackNews.com

The post Black Entrepreneur Who Opened Three Real Estate Firms in 5 Years Speaks at NAREB National Convention appeared first on National Association of Real Estate Brokers .

Survey finds race still a factor in mortgage approval

Mon, 08 Jul 2019 15:42:00 GMT

A new analysis of US mortgage applications claims African Americans are twice as likely to be denied a mortgage as white applicants.
The study, carried out by real estate blog Clever Real Estate, also found that the disparity between white and black mortgage approval rates is most pronounced in the South.

In Montana, Idaho, Hawaii and Vermont more blacks get approved than whites, while New York has a nine percent disparity skewed towards white mortgage approval.

Congress enacted The Home Mortgage Disclosure Act (HMDA) in 1975 to combat credit shortages in urban neighborhoods throughout the United States. The government believed that financial institutions contributed to the decline in cities across the Rust Belt, from Detroit to St. Louis, due to discriminatory lending practices.

The Federal Financial Institution’s Examination Council (FFIEC) collects and discloses data about applicant and borrower characteristics to help identify possible discriminatory lending patterns and enforce anti-discrimination statutes.
Its primary purpose is to provide data — it’s up to a discerning public to scrutinize the data and determine whether discriminatory malfeasance has occurred.

After an initial scan of the database, Clever Real Estate said saw a disturbing trend: 26 percent of African-American applicants were denied mortgages compared to 10 percent of white-American applicants.

After collecting and analyzing over 1.7 million applicants from 2016, two things became clear:

Even when controlling for income, African Americans are twice as likely to be denied a mortgage than white applicants

The applicant data points are limiting, and HMDA’s data set is missing important variables like why applicants were denied

The analysis found that racial disparity is least in the West, but the difference between approval rates is still statistically significant, indicating racial discrimination in the mortgage industry is a nationwide issue

Mortgage applicants are overwhelmingly white: Of Clever’s 1.7 million applicants sampled, 1,482,248 mortgage applicants were white, compared to 80,442 African Americans, 93,762 Asian Americans, 29,293 American Indians, and 15,645 Native Hawaiian or Pacific Islanders

The Home Mortgage Disclosure Act (HMDA) grew out of public concern over credit shortages in urban neighborhoods, but the data is sparse: 52 percent of black applicants had no reason listed for their mortgage being denied.

African-American and Hispanic home buyers are respectively 105 and 78 percent more likely to use high-cost mortgages for home purchases, putting them at greater risk of foreclosure

The states where black applicants are least likely to get approved include Kansas, South Carolina, Mississippi, Louisiana, Arkansas, Delaware, and Alabama. In states like South Carolina, 49 percent of black applicants were denied applications compared to eight percent of white applicants, not controlling for income. Kaynak: Zovovo Bilgi Sitesi ve En iyiler listesi.

A separate survey by Reveal and The Center for Investigative Reporting didn’t find clear evidence of discrimination in the New York tri-state area.

“That doesn’t mean it doesn’t exist, but it didn’t show up through our statistical tests,” said the survey creators. “For Asian, Latino, black and Native American applicants, there were enough applications, but other statistical factors made it difficult to draw a conclusion.”

Credit: Real Estate Weekly

The post Survey finds race still a factor in mortgage approval appeared first on National Association of Real Estate Brokers .

Will White House act to end the affordable housing crisis?

Mon, 08 Jul 2019 14:54:00 GMT

By Charlene Crowell

Nearly 90 years ago, Kelly Miller, a black sociologist and mathematician, said, “The Negro is up against the white man’s standard, without the white man’s opportunity.” As the first black man to enroll as a graduate student at Johns Hopkins University in 1908, Miller also authored a book entitled Race Adjustment, published in 1908.

Ironically, despite the passage of time, Miller’s words express the same sentiment held today by many black Americans. As a people and across succeeding generations, we have held fast to our hopes for a better life. Yet it is painfully true that many opportunities enjoyed by other Americans have been elusive for people of color.

While economists, public policy think tanks and other entities may sing a chorus of how well the American economy is performing and expanding, people of color — especially blacks and Latinos — have yet to see or feel economic vibrancy in our own lives — particularly when it comes to housing and homeownership.

On June 25, Harvard University’s Joint Center for Housing Studies released its annual report, The State of the Nation’s Housing. One of the housing industry’s most broadly anticipated and cited reports, it once again chronicles recent trends and issues.

Among this year’s key findings:

For families who already own their own homes, these findings signal that their investments are appreciating, growing in equity and wealth.

But for those trying to make that important transition from renting to owning, it’s a very different outlook. As rental prices continue to soar and moderately priced apartments disappear from the marketplace, both prospective homeowners and current renters face a shrinking supply of affordable housing.

When homeownership is possible, housing costs can be better contained with fixed-interest rate mortgages, tax credits, and eventual equity. Even so, the Harvard report finds that only 36 percent of all consumers could afford to buy their own home in 2018. With higher priced homes in 2019, the affordability challenge worsens.

“It is equally noteworthy that once again this key report shares how consumers of color continue to face challenges in becoming homeowners, noted Nikitra Bailey, an EVP with the Center for Responsible Lending. “According to the report, only 43 percent of blacks and 47 percent of Latinx own their own home, while white homeownership remains at 73 percent.

On the same day as the Harvard report’s release, President Donald Trump signed an executive order that establishes a new advisory body that will be led by HUD Secretary Ben Carson. A total of eight federal agencies will work with state and local government officials to remove “burdensome governmental regulations” affecting affordable housing.

“Increasing the supply of housing by removing overly burdensome rules and regulations will reduce housing costs, boost economic growth, and provide more Americans with opportunities for economic mobility,” Carson said.

If Carson means that local zoning rules favor single family homes over multi-family developments is a fundamental public policy flaw, he may be on to something. However this focus misses the crux of the affordable housing crisis: Wages are not rising in line with increasing housing costs. And now, after the housing industry continues to cater to more affluent consumers, while many older adults choose to age in place, the market has very little to offer those who want their own American Dream, including some who are anxiously awaiting the chance to form their own households.

What is missing from this new initiative is a solution to the financial challenges that average people face.

It was scant regulation and regulatory voids that enabled risky mortgage products with questionable terms that took our national economy to the brink of financial collapse with worldwide effects. Taxpayer dollars to rescue financiers while many unnecessary foreclosures stripped away home equity and wealth from working families.

Time will tell whether new advisors and proposals remember the lessons from the Great Recession.

Credits: Charlene Crowell | THE BAY STATE BANNER

The post Will White House act to end the affordable housing crisis? appeared first on National Association of Real Estate Brokers .

Blacks, income property and wealth

Wed, 19 Jun 2019 22:36:00 GMT

By Pride Newsdesk

It is quite disturbing to learn there has been virtually no substantial increase in Black wealth in the last 50 years.

Based on data from the Federal Reserve’s survey of Consumer Finance, the typical black family has just 10 cents for every dollar held by the typical white family. History reveals to us there were very intentional decisions that helped to create this disparity.

The U.S. government has a long history of assuring there would not be a level playing field when it comes to building wealth. The facts reveal it was never the case that a white asset-based middle class simply emerged. It was primarily government policy including literal giveaways that provide whites the finance, education, land, and infrastructure to accumulate and pass down wealth. Today it would take over 200 years for Blacks to financially catch up.

The FDA permitted the use of restrictive covenants, not allowing home sales to Blacks. Redlining, which defined Black communities as hazardous areas, directly reducing property values, increased rates and general housing and lending discrimination against Blacks through the 20th and 21st century.

The GI Bill is one example of several postwar policies in which the federal government invested heavily in the greatest growth of a white asset-based American middle class, to the exclusion of Blacks. Historian Kathleen Frydl found that the beneficiaries of the GI Bill mortgage guarantee “secured significant forms of general wealth, assets that could be inherited, or leveraged to create wealth for descendants.”

Additional consequences exacerbating the racial wealth gap due to national mortgage lending bias have been examined. Sociologist Thomas Shapiro argued that for middle-class Americans, home equity accounts for an estimated 66 percent of their total wealth portfolios. That means for most Americans, homeownership has historically been the centerpiece of financial security.

What does this have to do with Nashville in 2019 and especially black homeowners? Many blacks who were able to purchase a home decades ago were only allowed to purchase in certain communities. These homes were in those communities that were considered hazardous which depressed the property value. Most of these homes were in the urban core while whites were all moving to the suburbs. Living in the urban core has become a practical and trendy place to be. All the amenities are now in the city along with many of the higher paying careers. Massive reinvestment continues to take place as young whites move in the city. The cost of housing has skyrocketed and Blacks are being displaced.

There is a population of Blacks who stand to benefit from what we so commonly call gentrification. Those who have held onto their property and not sold it for far less than its value, can now possibly benefit financially. Once again rules are being put in place that may be a barrier to some level of real financial gain.

Millions of dollars are being made from the Airbnb business or short term rentals. I understand that there needs to be balanced with this new enterprise. I strongly believe considering the significant financial loss Black people have incurred for over a century, literally at the hands of government institutions accommodations must be made. Allowances that do not create barriers under the guise of new regulations or ordinances that prevent these families from securing their piece of the financial pie. For a visit to an online casino in Australia, this means in practical terms: If a pokie machine pays out winnings frequently, these are usually relatively modest. Pokies with a high payout rate rarely show the coveted jackpot symbols. Nevertheless, those who would like to try their luck on the colorful reels should do so. Pokies are an interesting diversion and can certainly provide an extra dollar or two, as long as the game is not taken too seriously and does not devour a financial budget needed elsewhere.

For those who are not aware of the many egregious and oppressive housing policies that Blacks have been subject to, now is a good time to do the research. Fortunately, you will not have to dig deep to understand how complicit our government has been. As Nashville grows and people are prospering, my hope is all its residents will be able to take advantage of financial opportunities as they present themselves.

Credits: Pride Newsdesk \ PRIDE Publishing Group

The post Blacks, income property and wealth appeared first on National Association of Real Estate Brokers .

Making opportunity zones work for black communities

Mon, 17 Jun 2019 14:34:00 GMT

By Venroy July

The IRS and the Treasury Department recently released a second set of proposed regulations on the federal Opportunity Zone program, which was created by the 2017 tax law to spur investment in economically distressed census tracts.

Most Opportunity Zones are in majority black and brown neighborhoods, giving rise to concerns about risks of gentrification and displacement of low-income families from their neighborhoods if the program does not adequately protect the interests of existing residents. Some worry that struggling communities will continue to be left behind, while outside investors enjoy the rewards of Opportunity Zone tax preferences.

As this debate plays out, those concerned about ensuring the democratization of the benefits to be provided by the law should be strategic about making the most of the potential benefits, rather than simply throwing up our hands in despair. Through creativity and collective action, black and brown investors and social entrepreneurs can make use of the most favorable aspects of the Opportunity Zone legislation to launch innovative investing initiatives aimed at building wealth in our communities.

LONG TIMELINES FOR ACQUIRING CAPITAL GAINS

At face value, possessing capital gains is the minimum requirement to take advantage of the tax incentives in the Opportunity Zones program. This ultimately creates an effective barrier to entry for many black and brown people. Capital gains are generated by sales of stock, other equity interests or assets, or real estate (generally investment properties, since the first $250,000 of proceeds from sale of a primary residence is not recognized as capital gains).

However, the long timelines built into the legislation provide an opening for participation down the road, even for those not currently sitting on unrealized capital gains. Investments made within a 10-year period of the Opportunity Zone’s designation can potentially reap tax benefits until 2047, provided the regulatory requirements are met. This offers a substantial time period for generating capital gains over the short or long term for later Opportunity Zone investment.

So much of the black experience in America has been about the organizations that connect our community, such as churches, black fraternities and sororities , and service clubs. These groups have played crucial roles in various social movements throughout our history.

The Opportunity Zone legislation offers a unique opportunity for these organizations to make strategic investments aimed at both financial return and social impact. The law in its design incentivizes pooling of resources: for an Opportunity Zone investment to receive tax benefits, it must be made through an Opportunity Fund, which is defined as a corporation or a partnership. (Limited liability corporations taxed as partnerships also qualify.)

Collective action to address systemic barriers to advancement is often discussed within these communities. With Opportunity Zones, incentives for collective action are actually built into and align with the legislation.

CYCLING THE DOLLAR

Along with collective investing, the Opportunity Zone program allows for cycling of investment dollars — the second set of regulations served to confirm this.

Imagine a scenario where an organization pools resources, in compliance with required securities laws, acquires properties and renovates them for sale to members of the community. Each home sale would help the homebuyer begin to accumulate assets that might even be passed on to the next generation.

At the same time, assuming a profitable transaction, the group selling the home could generate capital gains that could then be reinvested in an Opportunity Fund, which would then be utilized for additional investments not only in additional housing but also potentially into businesses of the neighborhood residents or other businesses interested in the reaping the benefits of being located in an Opportunity Zone. We have already done all the work for you and collected all the free spins on registration in a convenient form on our website. In keeping with the regulation, investments would need to be held for the required time periods to reap the full tax benefits of the law, but this strategy could be utilized to truly be transformative for these communities and the people who live there.

Cycling investment funds in this way has the potential to increase returns on various fronts: making money for the investment collective, expanding homeownership in low-income communities, strengthening neighborhood stability, and promoting intergenerational wealth transfer that can help to close the wealth gap.

Although the Opportunity Zones program will almost certainly lead to gentrification as property values increase in areas targeted for investment, it can also offer new paths to black economic empowerment. With innovative approaches, a solid understanding of the risks and rewards of Opportunity Zone investing, and careful attention to regulatory requirements for maximizing tax benefits, we can leverage the Opportunity Zone program to build wealth for black families and revitalize our communities.

Credits: Venroy July \ Black Enterprise

The post Making opportunity zones work for black communities appeared first on National Association of Real Estate Brokers .

Black Americans Face Challenges in Achieving Homeownership, but Help is Available

Wed, 12 Jun 2019 12:48:00 GMT

By: Crissinda Ponder

Economic disparities are still a pain point in many communities across the United States, especially in terms of homeownership.

The homeownership rate among white Americans is 73.2%, according to the latest Residential Vacancies and Homeownership quarterly report from the U.S. Census Bureau — significantly higher than the homeownership rates for all other racial groups. The lowest among these is the black homeownership rate, at 41.1%.

To better illustrate what some of those disparities might be, LendingTree, the nation’s leading online loan marketplace , has taken a look at how race impacts homeownership rates in the nation’s 50 largest metros.

This study focuses on homeownership trends among black Americans. While it varies from metro to metro, our analysis found that black Americans tend to own a disproportionately low number of homes relative to their overall population.

Key findings

In each of the nation’s 50 largest metros, black Americans own a disproportionately small percentage of homes.
Americans who identify as black make up an average 15% of the population in each of the metropolitan areas featured in our study, but they only own an average of about 10% of owner-occupied homes.

Black Americans own the smallest percentage of homes relative to their overall population in Memphis, Tenn.
Although they make up nearly half (47%) of the total population and are the largest racial group in Memphis, black Americans only own about 35% of the owner-occupied homes in the metro area.

Homeowners who identify as black own the largest percentage of homes relative to their total population in San Jose, Calif.
Black Americans account for only 2.33% of San Jose’s overall population. The percentage of homes owned by black homeowners is nearly 1.5%, which is still a disproportionately small percentage.

Black Americans have the lowest incomes of any racial group in the nation’s 50 largest metro areas.
Across the metropolitan areas featured in our study, the average median household income for black Americans is $41,571. This is more than $30,000 below the average median household income for white Americans. It’s also nearly $6,000 less than the incomes of Americans who identify as Native American or Alaskan Native. Because lenders evaluate a potential borrower’s income, this can pose challenges when it comes time to qualify for a mortgage.

5 metros where black homeownership is lowest relative to overall population

Below we shed light on the five metropolitan areas of the 50 we studied that have the lowest percentage of homes owned by black Americans relative to their total population.

Memphis, Tenn.

New Orleans

Milwaukee

Baltimore

Virginia Beach, Va.

Metros with the largest difference between % of owner-occupied homes and % of the population for Black Americans

Taking advantage of homebuying programs

Our analysis shows that overall, there’s a disparity in percentages between the population of black Americans and the share of black owner-occupied homes in the 50 largest metros. There may be several ways to increase homeownership among underserved communities; one of them is by raising awareness about the available homebuying programs on both a national and local level.

The U.S. Department of Housing and Urban Development offers an online resource for consumers who are interested in learning more about homeownership options in their state. See HUD’s local homebuying programs directory for more information.

There are also government-backed and private entities with homebuying programs that cater to low-income buyers.

Fannie Mae and Freddie Mac loans

Certain types of conventional loans — mortgages that are eligible for purchase by government-sponsored enterprises Fannie Mae or Freddie Mac — are reserved for low- to moderate-income borrowers who are either first-time or repeat homebuyers.

Fannie Mae’s HomeReady mortgage program requires a 3% down payment and a minimum 620 credit score. Private mortgage insurance is required, but it is cancellable once you reach 20% equity in your home.

Freddie Mac’s Home Possible program also requires 3% down and private mortgage insurance that can be canceled once you reach 20% equity. But unlike Fannie Mae’s HomeReady program, you might be able to qualify for the program without a usable credit score, but you’d need to contribute at least a 5% down payment.

FHA loans

The Federal Housing Administration, which is overseen by HUD, insures FHA loans provided by approved mortgage lenders. FHA loans give consumers the opportunity to buy a home at a lower barrier of entry, including homebuyers with bad credit .

In most cases, you’ll need a minimum 580 credit score and 3.5% down payment. You may qualify with a credit score as low as 500, but your required down payment jumps would jump to a 10% minimum. There’s also a mortgage insurance premium requirement that sticks around for the life of the loan unless you put down at least 10%.

Other programs

Additional homebuying programs include USDA loans , which are backed by the U.S. Department of Agriculture’s Rural Housing Service. USDA loans are meant to assist borrowers looking to buy a home in a designated rural area. Depending on the loan type, there may be no required down payment.

Read our guide on homebuying programs for a rundown of other available options.

Methodology

This study ranks the nation’s 50 largest metropolitan statistical areas (MSAs) by the difference between the percentage of owner-occupied homes that are owned by residents who identify as black (and no other racial group), and the percentage of the population that identifies as black (and no other racial group) in that metro area. This is possible in all segments, in the products and services offered, in the distribution of news, in politics and even in the development of online games. The latter, for example, use not always legal methods of implementation, unblocked slope has become one of the scandalous and most famous examples far beyond the online gaming segment.

The further the difference is from zero, the more disproportionate the number of black owner-occupied homes is in that metro area.

We based our analysis on homeownership, income and population data from the U.S. Census Bureau’s 2017 American Community Survey.

Please note that the data in the study are estimated, so the margin of error is +/-5%.

Credits: Crissinda Ponder | Lending Tree

The post Black Americans Face Challenges in Achieving Homeownership, but Help is Available appeared first on National Association of Real Estate Brokers .

REPORT: Cities with the highest percentage of black homeowners

Mon, 10 Jun 2019 20:36:00 GMT

By Selena Hill

Even though housing discrimination has been outlawed for 50 years, studies show that the U.S. black homeownership rate isn’t any higher than when the Fair Housing Act initially passed in 1968. In fact, the racial gap between white and black homeowners today is significant. According to the U.S. Census Bureau , the homeownership rate among white Americans is 73.2%, while the black homeownership rate stands at 41.1%. In comparison, 42% of black households owned their homes back in 1970, two years after housing discrimination based on race, color, religion, and national origin was outlawed.

These staggering statistics demonstrate that the obstacles blocking African Americans from buying homes extend beyond federal barriers – the issues are systemic. Economic disparities, for instance, put many communities of color across the country at a disadvantage, especially when it comes to homeownership. A new analysis conducted by LendingTree , the nation’s leading online loan marketplace, reveals how race impacts homeownership rates in the nation’s 50 largest metropolitan areas. The study found that black Americans tend to own a disproportionately low number of homes relative to their overall population.

According to the report, the U.S. cities that have the highest percentage of black homeowners are San Jose, Los Angeles, Salt Lake City, San Antonio, and Portland. On the other hand, the cities where black homeownership is lowest relative to overall population are Memphis , New Orleans, Baltimore, Virginia Beach, and Milwaukee, where the median household income for black residents is a mere $28,928.

The study also found that the average median household income for black Americans is $41,571, which is more than $30,000 below the average median household income for whites. “Because lenders evaluate a potential borrower’s income, this can pose challenges when it comes time to qualify for a mortgage,” states the report.

Here are other key findings from the report:

IN EACH OF THE NATION’S 50 LARGEST METROS, BLACK AMERICANS OWN A DISPROPORTIONATELY SMALL PERCENTAGE OF HOMES.
Americans who identify as black make up an average 15% of the population in each of the metropolitan areas featured in our study, but they only own an average of about 10% of owner-occupied homes.

BLACK AMERICANS OWN THE SMALLEST PERCENTAGE OF HOMES RELATIVE TO THEIR OVERALL POPULATION IN MEMPHIS, TENN.
Although they make up nearly half (47%) of the total population and are the largest racial group in Memphis, black Americans only own about 35% of the owner-occupied homes in the metro area.

HOMEOWNERS WHO IDENTIFY AS BLACK OWN THE LARGEST PERCENTAGE OF HOMES RELATIVE TO THEIR TOTAL POPULATION IN SAN JOSE, CALIF.
Black Americans account for only 2.33% of San Jose’s overall population. The percentage of homes owned by black homeowners is nearly 1.5%, which is still a disproportionately small percentage.

BLACK AMERICANS HAVE THE LOWEST INCOMES OF ANY RACIAL GROUP IN THE NATION’S 50 LARGEST METRO AREAS.
Across the metropolitan areas featured in our study, the average median household income for black Americans is $41,571. This is more than $30,000 below the average median household income for white Americans. It’s also nearly $6,000 less than the incomes of Americans who identify as Native American or Alaskan Native. Because lenders evaluate a potential borrower’s income, this can pose challenges when it comes time to qualify for a mortgage.

View the full study here: Homeownership Among Black Americans in U.S. Cities

Credits: Selena Hill | Black Enterprise

The post REPORT: Cities with the highest percentage of black homeowners appeared first on National Association of Real Estate Brokers .

NAREB Takes Fight for Black Homeownership to Congressional Hearing

Fri, 07 Jun 2019 14:31:00 GMT

By Hazel Trice Edney

The rate of Black homeownership in America – now at 41.1 percent, according to 2019 census numbers – is even lower than it was when the Fair Housing Act was signed into law 51 years ago on April 11, 1968.

This means Black homeownership is 32.1 percentage points lower than that of Whites, which stands at 73.2 percent. It also means Black homeownership is 6.3 percentage points lower than that of Latino-Americans, which stands at 47.4 percent.

These are just a few of the facts presented to a recent Congressional hearing by homeownership advocates. The hearing, held by the House Finance Committee’s Subcommittee on Housing, Community Development and Insurance, was the first modern day hearing of its kind — intended to discover the barriers to homeownership for people of color.

“Federal housing regulators and agencies have aggressively pursued lending practices and policies that make access to homeownership more challenging for Black Americans. It is against this backdrop that I give my testimony,” Jeff Hicks, president/CEO of the National Association of Black Real Estate Brokers (NAREB), testified to lawmakers at the hearing. “Our nation has a very complicated and checkered history with providing equal and equitable access to homeownership to Black Americans. At the end of World War II, when Black Americans sacrificed their lives for the cause of freedom, dignity and human rights, the United States federal government created an economic divide between Blacks and Whites.”

Hicks described how Black veterans and their families were “denied the multigenerational, enriching impact of home ownership and economic security that the G.I. Bill conferred on a majority of White veterans, their children, and their grandchildren.”

He concluded that the “unequal implementation of the G.I. Bill, along with federal government policies and practices at the Federal Housing Administration (FHA), including the redlining of Black neighborhoods, were leveled against Black veterans” while at the same time the government financed the construction of suburbs and provided subsidized mortgage financing for Whites-only. This scenario “set the stage for today’s wealth and homeownership gap statistics,” Hicks said.

The hearing, led by Housing Subcommittee Chair Rep. Lacy Clay (D-Mo.), marked the anniversary of the passage of the Fair Housing Act (FHA), signed into law one week after the April 4 assassination of Dr. Martin Luther King Jr.

President Lyndon B. Johnson described the road to the 1968 passage as a “long and stormy trip” after it failed three times. Together, the testimony of the 72-year-old NAREB — the oldest organization represented — and the string of witnesses at the 21st century congressional hearing, revealed that the storm is not nearly over.

“We have not simply failed to make progress; we are losing ground. And we cannot continue to go backward,” Alanna McCargo, vice president for Housing Finance Policy, Urban Institute, stressed the urgency of the moment.

The Urban Institute was founded by President Johnson in 1968 to focus on “the problems of America’s cities and their people and to inform social and economic policy interventions that would help fight the War on Poverty,” she described.

The witnesses gave facts and anecdotes describing why new legislation and homeownership policies are needed. Among the proposals:

The passage of The American Dream Down Payment Savings Plan, a proposal with bipartisan support, which would allow prospective homebuyers to save money in an authorized account, where the savings could grow and be removed for the specified purpose of a tax-free down payment for purchasing a home.

A fairer mortgage and underwriting process in which borrowers meet a minimum threshold for approval and all interest rates and costs are the same for everyone; regardless of race; including loan level equality, approval rates, pricing and terms for borrowers — without adjustments for neighborhoods, zip codes or census tracts.

Accountability for non-bank financial institutions such as the examination their lending practices to ensure fair, equitable, and non-discriminatory origination, pricing, and terms. This would also include greater accountability and modernization of the Community Reinvestment Act to eliminate loopholes that limit access to mortgage credit to existing and potential Black homeowners.

Overall promotion of homeownership as a High Priority for Public Policymakers.

Equal and equitable access to mainstream mortgage credit as prospective Black homeowners have been trapped in predatory mortgage schemes or by an absolute denial of access to home loans.

Historically unequal access to credit for people of color was repeated as a key problem during the hearing.

“Wide access to credit is critical for building family wealth, closing the racial wealth gap, and for the housing market overall, which in turn, contributes significantly to our overall economy,” Nikitra Bailey, executive vice president of the Center for Responsible Lending, told the Committee. “Today’s hearing is a good step toward acknowledging this history and presents the potential to create opportunities to address it.”

The other four witnesses were Joseph Nery, president, National Association of Hispanic Real Estate Professionals; Carmen Castro, managing housing counselor, Housing Initiative Partnership; Joanne Poole, liaison for the National Association of Realtors and Joel Griffith, research fellow, Financial Regulations, The Heritage Foundation.

Bi-partisan lawmakers on the subcommittee listened intently then fired questions and remarks.

When Rep. Al Green (D-Texas) asked the witnesses to raise their hands if they “believe that invidious discrimination has been a significant reason for the inability for African-Americans to achieve wealth in this country … to this very day,” all seven witnesses extended their hands into the air.

“I’m grateful that you’ve done this because we’ve been trying to build a record to let the world know that we still have discrimination,” Green said. “Our original sin was discrimination. To be more specific racism … institutionalized racism.”

Chairman Clay saw eye to eye with the witnesses.

“It is clear by the evidence in front of us that 51 years later, there is still much work to be done to promote and assure fair housing in America,” he said, adding that Congress must bear the responsibility to end the discrimination largely because of its failure to continue to make and maintain fair housing policies.

“Although many private actors were complicit, research has shown that the government played a significant role,” Clay said.

Rep. Maxine Waters, chair of the House Financial Services Committee, which oversees the Housing Subcommittee, pressed the lawmakers, saying many of the oppressive policies are still used by banks and are “taken for granted.”

Waters described interest rates that are so high that homeowners – paying both interest and principal – have faced foreclosure because they can no longer afford the loan. She also described banks that won’t do loan modifications until two payments are missed making it difficult to catch up on the payments.

“We need to scrub this market and all the rules and practices and come up with a laundry list of what we think needs to be taken out of the way,” Waters said. Quels sont les médicaments disponibles sur ordonnance ? Voici quelques points essentiels à ce sujet. Lorsque vous achetez Plaquenil, vous devez connaître quelques points simples. https://clubdigitalmedia.fr/news/plaquenil-200mg.html Très probablement vous avez déjà entendu quelque chose à ce sujet. Les pharmacies en ligne fournissent des médicaments d’ordonnance et des vitamines de la meilleure qualité.

The congressional hearing was held on launch day for NAREB’s 2019 Spring Policy Conference May 8. NAREB, founded to fight for civil rights in order to win economic justice for its members and the people they serve, has set a goal of at least two million new Black homeowners within five years. They view working with Congress as their next best hope.

“Together with Congress, we must overcome the discrimination that continues to limit Black homeownership,” Hicks said. “The reason for this “dismal reality,” as stated in NAREB’s most recent SHIBA (State of Housing in Black America) report, is “that Blacks have never enjoyed equal and equitable access to mainstream mortgage credit. Rather, Black families attempting to become homeowners have largely been trapped in a vicious cycle of predatory mortgage schemes or by an absolute denial of access to home loans…We need to vigorously renew the importance of homeownership to all families, regardless of their race or ethnicity.”

Credits: Hazel Trice Edney | The Washington Informer

The post NAREB Takes Fight for Black Homeownership to Congressional Hearing appeared first on National Association of Real Estate Brokers .

Examining Black Homeownership Trends

Fri, 07 Jun 2019 12:00:00 GMT

By Radhika Ojha

Black Americans own a much smaller number of homes compared to other demographics across the nation’s 50 largest metros, according to a new study by LendingTree.

LendingTree also found that across the metropolitan areas covered in the study, the average median household income for this demographic was $41,571, over $30,000 below the average household income recorded for white Americans in these cities. This was especially important, the study said, “because lenders evaluate a potential borrower’s income, and this can pose challenges when it comes time to qualify for a mortgage.”

Looking at the cities with the lowest percentage of Black American homeownership, the study said that Memphis, Tennessee’s Black population was 46.5%. Comparatively, the percentage of black-owner occupied homes was 34.7%. With a median difference of 11.7% between the population and overall owner-occupied homes, Memphis has the lowest percentage of homes owned by black Americans relative to their total population.

New Orleans with a difference of -24.8%; Milwaukee (-9.2%); Baltimore (-9.1%); and Virginia Beach, Virginia (-8.5%) rounded off the five cities that had the lowest homeownership rates among Black Americans relative to their total population.

On the other hand, while Black Americans account for only 2.3% of San Jose, California’s population, the study found that the percentage of homes owned by them was the largest relative to their overall population across the 50 metros in the study. However, LendingTree pointed out, “The percentage of homes owned by black homeowners is nearly 1.5%, which is still a disproportionately small percentage.”

Concluding from the study, LendingTree said that while the homeownership rates among this population remained low there were several ways to increase it, “one of them is by raising awareness about the available homebuying programs on both a national and local level.

Credits: Radhika Ojha | DSNews

The post Examining Black Homeownership Trends appeared first on National Association of Real Estate Brokers .

New report reveals Black homeowners in Chicago lost billions due to predatory housing contracts

Thu, 06 Jun 2019 14:20:00 GMT

By Brianna Rhodes

Many people in the Black community once used homeownership as a means of building wealth, but a report published on Thursday reveals that Black Chicagoans who purchased homes between 1950 and 1970 never had a chance of making money because of predatory housing practices.

The report, called “T he Plunder of Black Wealth in Chicago: New Findings on the Lasting Toll of Predatory Housing Contracts ,” conducted by researchers from various universities, reveals that more than 75 percent of Black homebuyers in Chicago who bought their homes through “home sale contracts” during this era lost between $3.2 billion and $4 billion of wealth due to racist real estate policies and predatory contracts, according to the Chicago Sun Times .

These buyers unfortunately permitted the seller to hold the deed of their home until the buyers could pay off the full amount. Buyers were paying at least $71,000 more on their home than a “conventional mortgage.”

This process prevented the buyer from accumulating equity and gave the owners all the power, since they still had the right to evict the buyer if they missed a payment. This is the first piece of research that shows exactly how much money was taken from the Black community during that time.

“These contracts offered Black buyers the illusion of a mortgage without the protections of a mortgage,” according to a report published by Duke University’s Samuel DuBois Cook Center on Social Equity .

During that timespan, 60,100 homes were bought by Black Chicagoans and each of those homes were found to be marked up by 84 percent.

Normally, homes in Chicago “purchased by a speculator for $12,000 would be resold days or weeks later on contract to a Black buyer for $22,000,” the report said.

This process was usually the only way that Black people could buy homes after the “post-war boom” since most of us were prevented from purchasing a home through a process called redlining.

These contracts were usually made through the very banks that turned down Black homebuyers who approached them for conventional loans, the report said.

The impact of the disparities of Black homeownership are still relevant today. Compared to the 74 percent of White families who own homes in Chicago today, only 39 percent of Black families can say the same, according to an analysis by the Urban Institute released last year.

Credits: Brianna Rhodes \ TheGrio

The post New report reveals Black homeowners in Chicago lost billions due to predatory housing contracts appeared first on National Association of Real Estate Brokers .

‘A plunder of black wealth’: Predatory housing contracts gouged Chicago’s black homeowners, new report says

Wed, 05 Jun 2019 17:32:00 GMT

A report released Thursday is the first to put a dollar amount on how much wealth was extracted from Chicago’s black community in the 1950s and 60s through home sale contracts.

By Carlos Ballesteros

Black homebuyers in Chicago lost at least $3.2 billion in today’s dollars because of racist real estate policies and predatory contracts between 1950 and 1970, according to a report published Thursday.

In those 20 years, black Chicagoans purchased 60,100 homes. More than 75% of those homes were sold through so-called “home sale contracts.” Those contracts allowed the seller to hold the deed until the buyer paid off the home in full. Until then, buyers did not accumulate equity in the home and owners were allowed to evict them for missing a single monthly payment.

“These contracts offered black buyers the illusion of a mortgage without the protections of a mortgage,” according to a report published by Duke University’s Samuel DuBois Cook Center on Social Equity .

The average price markup for homes sold through contract was around 84%. Typically, homes in Chicago “purchased by a speculator for $12,000 would be resold days or weeks later on contract to a black buyer for $22,000,” the report said.

Adjusted for inflation, black contract buyers in Chicago ended up paying an average $71,000 more for their home than they would have paid with a conventional mortgage.

“The total amount expropriated from Chicago’s black community due to land sales contracts,” the report concludes, is anywhere “between $3.2 billion and $4 billion.”

The report — “ The Plunder of Black Wealth in Chicago: New Findings on the Lasting Toll of Predatory Housing Contracts ” — was produced by a dozen researchers from Duke, Loyola University, Roosevelt University and the University of Illinois at Chicago.

It is the first study to put a dollar amount on how much wealth was extracted from Chicago’s black community in the 1950s and 60s through home sale contracts.

“This report should’ve been done a long time ago,” said Janet Smith, professor of urban planning and policy at UIC and one of the authors of the report. “It’s bringing to light the total cost this predatory practice took from the black community as a whole.”

Home sale contracts were often the only way black families were able to buy a home in Chicago during the post-war boom. Banks, policymakers and real estate agents prevented most black families from buying a home with a mortgage at a fair price or in majority-white neighborhoods through a process known as redlining .

Behind the predatory home sale contracts were “the very banks that turned down black homebuyers,” the report said, along with “investment syndicates comprised of white Chicago lawyers, doctors, downtown business leaders, and city government officials, all of whom profited handsomely by exploiting a separate and unequal housing market to the profound disadvantage of black families.”

The effects of unequal access to home ownership during the post-war period persist today.

In the Chicago area, only 39% of black households own their home compared with 74% of white families, according to an analysis by the Urban Institute released last year.

The report is the basis for a five-part film series called “ The Shame of Chicago. ”

Bruce Orenstein, creator of the series and artist in residence at Duke’s Samuel Dubois Cook Center, said the project is an attempt to educate future generations about Chicago’s history of racism and discrimination.

“By bringing this largely hidden and misunderstood story to life, over time, we hope that it can play a role in moving Chicagoans towards a common understanding of and genuine reckoning with our past,” he said. Best ED drug: BUY SUPER KAMAGRA (SILDENAFIL WITH DAPOXETINE) ONLINE – USA, UK pharmacy.

The series will be previewed at a sold-out symposium at The Federal Reserve Bank of Chicago on Thursday.

Credits: Carlos Ballesteros \ Chicago Suntimes

The post ‘A plunder of black wealth’: Predatory housing contracts gouged Chicago’s black homeowners, new report says appeared first on National Association of Real Estate Brokers .

The legacy of Asheville’s racial real estate covenants

Fri, 31 May 2019 20:26:00 GMT

It’s rare that Drew Reisinger, Buncombe County’s register of deeds, is surprised by any historical outrages that turn up in the public records under his care. After all, it was at his direction that the county became the first one in the country to digitize its archives of deeds documenting the local ownership and sale of slaves.

But one day in 2013, as he reviewed a title search for the home he and his wife would ultimately buy — a medium-sized rancher on Wendover Road in West Asheville’s Malvern Hills neighborhood — one of the restrictive covenants listed in the property records left him cold. Scripted in 1939 by a now-defunct homeowners association, it read: “No lot … shall be leased or permitted to be occupied by a negro, or person of any degree of negro blood, or any person of bad character.” The covenant went on to clarify that “This shall not prevent the employment of servants of negro blood, nor their occupancy of servants quarters.”

“I was shocked and saddened,” Reisinger remembers. “I can only imagine what it would have been like to find that kind of message if you were a black person thinking about joining this neighborhood, how unwelcoming and even scary that would be.”

Running with the land

Tucked into real estate deeds and other lengthy legal documents regulating property use and maintenance, aesthetic standards and the like, such racial restrictions were once prevalent in states throughout the nation. According to The Fair Housing Center of Greater Boston, “Most covenants ‘run with the land’ and are legally enforceable on future buyers of the property.” Owners who violated the terms of the covenant risked forfeiting their property or, in some cases, incurring significant fines.

And though both the courts and federal housing law long ago ruled such covenants unenforceable, they remain on the books in many communities to this day. In the Malvern Hills case, a quorum of neighborhood property owners rescinded the ban on black residents in 1963 as the civil rights movement was gaining steam.

A search of old Asheville property deeds turns up many such vestiges of institutionalized racism. One that was rescinded by the Biltmore Forest Co. in 1970, for example, used almost the exact same language, banning any “negro or person of any degree of negro blood.” Likewise, a covenant in East Asheville’s Beverly Hills neighborhood, not revoked until 1983, stressed that “No persons of any race other than the Caucasian race shall use or occupy any building.”

And in North Asheville’s Lake View Park development, even a 1940s welcome pamphlet for property owners touted a ban on black residents, alongside details about such amenities as Beaver Lake and its boating, fishing and swimming opportunities. The development’s current website contains assorted historical documents including the pamphlet, with a note indicating that it was produced in the “pre-civil rights period.”

No one knows how many Asheville neighborhoods or properties were once subject to racial covenants, and to find out would require exhaustive research in Buncombe County’s land records.

“These things are buried all over the place,” says Reisinger. And while he’s glad to find that many neighborhoods did eventually officially renounce those restrictions, he adds, “This is a history we obviously haven’t taken a very close look at, and that’s something we need to do.”

Rooted in racism

Even before many of the local covenants were written into property deeds, Asheville was an early adopter of racial housing restrictions. In 1913, for example, the city enacted a segregation ordinance creating separate black and white residential zones. But subsequent Supreme Court cases shed light on the way both racism and legal efforts to combat it can evolve over time.

Buchanan v. Warley, a 1917 decision concerning a similar law in Louisville, Ky., declared such municipal racial zoning unconstitutional. That didn’t eliminate the underlying prejudice, however: It simply morphed into a different form.

In Asheville, for example, assorted prominent citizens endorsed a sweeping new blueprint for the city’s future in 1922. Prepared by John Nolen, a noted urban planner who also designed Lake View Park, the Asheville City Plan stated, “It is in most respects a distinct advantage to the negroes to be separated from the white population” — provided that black residents had good schools, homes, stores and recreational areas.

Reflecting such sentiments, many of the Asheville subdivisions built during the 1920s boom barred black ownership, notes local real estate attorney William Reed. “At the time, it was a clear reflection of some of those white communities’ racial beliefs and preferences,” he says. “They were unabashed about the fact that they didn’t want people of color as their neighbors.”

Accordingly, private racial restrictions — i.e., those not issued by a unit of government — proliferated nationwide. North Carolina was one of 14 states whose supreme courts upheld the legality of racial covenants when they were challenged, according to historian Richard Rothstein’s 2017 book The Color of Law: A Forgotten History of How Our Government Segregated America. And in 1926, the U.S. Supreme Court’s ruling in Corrigan v. Buckley upheld those restrictions’ validity. Rothstein is an authority on institutionalized discrimination.

By 1948, however, the court’s position had shifted. That year, the landmark Shelley v. Kraemer ruling dealt racial covenants a theoretical deathblow, declaring them unconstitutional and unenforceable. But as Rothstein notes, the Federal Housing Administration “continued to subsidize projects that penalized sellers of homes to African Americans,” and new racially restrictive provisions still crept into legal documents pertaining to some residential associations and housing developments, even decades later.

In Asheville, other types of housing discrimination appeared after restrictive covenants lost the force of law. Some of those practices, particularly “redlining,” continued on a large scale for decades, notes local racial equity consultant Marsha Davis. She’ll recount the city’s history of redlining — the refusal by banks and insurance companies to issue loans or policies in certain neighborhoods — at a Thursday, May 30, event hosted by financial counseling nonprofit OnTrack WNC (see sidebar). Her presentation will outline various steps taken to disenfranchise, displace and corral black communities.

A lasting legacy

Today, many homeowners may not even be aware that their property was once subject to racial restrictions — and if and when they do find out, they can be flummoxed about how best to respond. In recent years, a few states, including California and Washington, have passed laws allowing individual owners to expunge discriminatory language from their deeds, but North Carolina has no such provision.

“Even when these covenants are still on record, of course, they can no longer can be invoked or enforced,” notes Reed, the real estate attorney. But that doesn’t stop some present-day owners from seeking to erase what they consider a stain on their property’s history.

Reed cites a 2009 case in which he assisted a black couple buying a house in Lake Toxaway in Transylvania County. The couple were chagrined to learn that the 1961 property deed banned “any person or persons not of the Caucasian race” (with an exception for “servants”). With Reed’s help, after buying the home, they filed a “termination of restrictive covenant” document — an addendum to the deed that, at least symbolically, renounced the racial restriction.

The document noted that both federal and state law have long banned discriminatory housing practices and spelled out the couple’s rejection of the covenant.

“You might say there’s no need for such a declaration,” Reed points out, since the restriction was already legally invalid. “But they decided that it was a concrete way to say that the values of the old owners are no longer welcome, that we have new values now.”

Whether or not old racial covenants are disavowed, they still tell an important story, argues Durham resident Stella Adams, the North Carolina NAACP’s housing chair and a veteran fair-housing advocate. During the 2000s, she studied cities where the covenants had been widely used, including Asheville, Charlotte and Wilmington.

And despite racial covenants’ lack of legal standing, Adams says their impact remains evident, even now. “In so many of these communities, you can examine the racial makeup of when the communities were built, and it’s exactly the same today,” she says.

Davis, meanwhile, believes that an examination of practices like racial covenants and redlining must inform contemporary strategies for countering deep-rooted inequalities wherever they are found.

“When we look at the achievement gap, the wealth gap, health gaps — all these stark disparities between races — it’s impossible to discuss them without taking a clear look back,” she maintains. “You can’t solve a problem without knowing where it came from in the first place.”

The post The legacy of Asheville’s racial real estate covenants appeared first on National Association of Real Estate Brokers .

NAREB Seeks to Increase Homeownership of Blacks by at Least Two Million

Wed, 29 May 2019 14:00:00 GMT

A national organization of real estate professionals has made the commitment to see the number of Black homeowners in the U.S. increase by two million in the coming years.

The National Association of Real Estate Brokers (NAREB), whose headquarters sits in Lanham, Md., is a membership organization with more than 18,000 real estate brokers, agents, investors, appraisers and others associated with the real estate industry in 35 states and the District of Columbia. NAREB’s executive director, Antoine Thompson, has made a commitment to see that Blacks own homes.

“NAREB wants to educate African Americans about the value of homeownership,” Thompson said. “Before the 2008 Great Recession, Blacks were making progress in bringing up the homeownership level but when the recession hit and afterwards, Blacks were adversely affected. The problem is that while other racial groups are recovering, African Americans are not.”

Thompson said that racial discrimination in lending by financial institutions still exists, and that Blacks continue to be discouraged from living in certain neighborhoods not based on income or wealth, but because of the color of their skin.

In 2004, census data reported 49% of all Black families owned a home, but those numbers declined during the Great Recession that officially, according to the U.S. Financial Crisis Inquiry Commission, started in December 2007 and technically ended June 2009, with the effects of the downturn still felt to this day.

In 2017, the Harvard University Joint Center for Housing Studies reported the homeownership rate overall in the U.S. at 63.9%, with Whites at 72.9%, Latinos posting at 46.2% and African Americans at 43%. In the District of Columbia, 71.8% of Whites are homeowners while 48.8% of Blacks own homes.

NAREB, with its motto of “Democracy in Housing,” was established in 1947 when Black real estate professionals could not join the National Association of Realtors because of racial discrimination.

Since that time, Thompson noted that NAREB has played a major role in the passage of fair housing laws in the 1960s, with the culmination of the 1968 Fair Housing Act being signed into law by President Lyndon B. Johnson.

Thompson said the organization has since played a role in the creation of the U.S. Department of Housing and Urban Development, the 1965 Voting Rights Act, the Community Reinvestment Act of 1977 and the effort to put more teeth into the enforcement effort of the Fair Housing Act, in 1989.

NAREB has established its reputation as an advocate for Blacks in housing with the establishment of its “State of Housing in Black America” report released annually in September since 2013.

Thompson served in the New York State Senate representing the Buffalo area from 2007-2011 and prior to that, represented a district on the Buffalo Common Council from 2001-2007. But this is more like series of popular online games than what is described above. He joined NAREB in 2015 and said he has worked to benefit the association with his background in public policy, politics and entrepreneurship.

Thompson wants to engage Black faith, fraternal and other professional organizations in the effort to increase Black homeownership. He said while Black organizations have long embraced homeownership, it has rarely been a top priority.

“Owning your own home is still the number one way to build wealth,” Thompson said. “Studies have shown that homeowners have higher life expectancy rates, are more civically and politically engaged and the most successful businesses are started in homes.”

Thompson cited businesses such as Hewlett-Packard and billionaires such as Steve Jobs and Bill Gates who started by running their businesses from their homes.

He also said too many African Americans are renting apartments when they should own homes.

“You aren’t building any equity in that apartment,” Thompson said. “That message should be spread to some Black millennials who are making $100,000 a year and living in an apartment. There is no economic benefit to that because it doesn’t increase their wealth, just the wealth of the landlord.”

Thompson also wants to increase the number of African Americans in the real estate industry and educate Blacks against questionable promotional practices such as “selling homes in seven days.”

“I tell people talk to a realtor when talking about selling a home,” he said. “Those commercials, billboards, posters and flyers are targeted to Black and Latino zip codes because they know those groups may have a need for quick cash. If you go to areas such as Bethesda, you don’t see that type of advertising.”

Credits: James Wright | The Washington Informer

The post NAREB Seeks to Increase Homeownership of Blacks by at Least Two Million appeared first on National Association of Real Estate Brokers .

Wilmington a ‘microcosm’ of larger cities on racial wealth divide, study says

Tue, 28 May 2019 15:24:00 GMT

By: Sophia Schmidt

A vast divide in the amount of wealth accumulated by white families and families of color persists in the U.S.— and by some reports, has grown in the past few decades.

That divide is reflected in Delaware’s largest city, where the median household income for black and Latino households is half that of white households— according to a study by D.C.-based nonprofit Prosperity Now.

“The average median household income for [Wilmington’s] white households is $60,772, whereas for blacks it’s half of that,” said Ebony White, associate director for the nonprofit’s racial wealth divide initiative.

White says wealth is reflective of more than just income. “A lot of the wealth that would have come to Native Americans, African Americans, Latinos was stripped from us. And so we don’t have that generational wealth that others may have.”

The Racial Wealth Divide in Wilmington report paints Wilmington as a microcosm of racial inequality in larger American cities. It found 33 percent of black households in Wilmington have zero net worth— which can only be said for 15 percent of white households.

The majority-black city’s homeownership rate stands at 58.2 percent for white residents, nearly twenty points higher than that for black and asian residents, and roughly double that for Latino residents. According to the study, Wilmington’s black-white racial divide in homeownership is smaller than the national divide.

Hispanic residents of Wilmington lead in liquid asset poverty, with nearly 65 percent of Hispanic households lacking sufficient savings to replace income at the poverty level for three months if they were to experienced a sudden job loss, medical emergency or other financial crisis. Black residents lead in income poverty, with roughly 27 percent of black families in Wilmington earning below the federal poverty level for the past 12 months.

The racial wealth divide study also tracked educational attainment. Almost 93 percent of white residents hold a high school degree or higher, while just over 81 percent of black residents do. More than 35 percent of Latinos in Wilmington lack a high school degree, according to the study.

Ebony White says Wilmington experienced a “white flight,” or a decrease in the city’s white population, through the 1950s and 1960s— resulting in a drop in the city’s overall median income. According to the report, New Castle County’s economy has been “much stronger” than that of Wilmington since 1980, with residents of all races “better positioned financially” in the surrounding county than in the city.

The study found that following the Financial Center Development Act of Delaware in 1981, incomes across all major racial and ethnic groups increased in Wilmington. However, the Great Recession hit residents of color harder than it hit whites, according to the report. It regressed median incomes for Wilmington’s black and Latino residents by more than 20 percent, while only regressing the white median income by less than 5 percent.

The Racial Wealth Divide in Wilmington study was conducted as part of Prosperity Now’s Building High Impact Nonprofits of Color initiative, which is working to support several local nonprofits including Christina Cultural Arts Center, the Urban League and the Kingswood Community Center. It is funded by JPMorgan Chase.

Credit: Sophia Schmidt | Delaware Public Media

The post Wilmington a ‘microcosm’ of larger cities on racial wealth divide, study says appeared first on National Association of Real Estate Brokers .

Poor credit scores keep Gen Xers from entering the housing market

Wed, 22 May 2019 21:15:00 GMT

On average, Gen Xers owe more than $20,000 in student loan debt.

A recent report from LendingTree reveals that although Gen Xers are now in their prime earning years, many are refraining from homeownership due to substantial debt.

The report analyzed the credit profiles of Gen Xers who own homes and compared them with those who are renters.

LendingTree’s analysis discovered that although renters carry less overall debt, homeowners have lower delinquency rates and higher credit scores.

While each group of Gen Xers’ credit scores may vary, data indicates student loan debt remains the largest burden for this generation.

This isn’t much of a surprise as student loan debt has racked up a collective $1.5 trillion bill for 44 million Americans, according to the Federal Reserve .

This debt has undoubtedly impacted the housing decisions of young Americans, even delaying the American dream of homeownership for many Gen Xers.

According to LendingTree’s analysis, 28% of homeowners owe a median of $28,557 in student debt, whereas 27% of renters have a median of $28,203.

While their debt burden may be similar, LendingTree suggests Gen X homeowners hold an asset that will not only be a meaningful source of wealth but will also boost their credit profiles.

According to the report, Gen X homeowners have a median credit score of 672, out ranking the 586 score for non-homeowners.

“Homeowners have a median of nine financial accounts compared to just four for non-homeowners,” LendingTree writes. “This reflects the higher credit scores of Gen X homeowners as they are able to obtain more credit accounts. Many renters may face difficulty accessing credit due to their lower credit scores.”

NOTE: LendingTree analyzed the credit records of more than one million Gen X users, analyzing their financial health to identify savings opportunities that could improve their credit scores.

Credits: Alcynna Lloyd | HOUSINGWIRE

The post Poor credit scores keep Gen Xers from entering the housing market appeared first on National Association of Real Estate Brokers .

Newly renovated homes on the market in north Minneapolis for under $200K

Wed, 15 May 2019 20:08:00 GMT

They have hardwood floors and stainless steel appliances. But with Avenue “N” in the address, are people buying these rehabbed homes?

By: Kiya Edwards

MINNEAPOLIS — Some home buyers overlook north Minneapolis. Not Julia Israel .

Over the course of 20 years, Israel has owned a few different homes. All in north Minneapolis.

“I like the sense of community,” Israel said. “I love how accessible it is to everything. Right off of lots of highways. Lots of parks. Lots of bike trails. Like most places in the Twin Cities.”
Friday, Israel unlocked the doors at 4831 Colfax Ave. N. But she doesn’t live at the two-bedroom, one-bathroom, one-story, fenced-in home.

“I’m a real estate broker,” Israel said. “I’m with Keller Williams Integrity and I actually train and coach real estate agents, and I am the president of the Black Real Estate Association, which is the National Association of Real Estate Brokers.”

She’s also one of only a few brokers working with Hennepin County to list its tax-forfeited properties. Some of the properties are listed as-is, while others, like the home on Colfax, get total makeovers before they go on the market.

“We’ve got a completely remodeled kitchen with stainless steel appliances,” Israel said. “Everything in here is new. So it’s almost like buying a new house.”

Israel says, historically, tax-forfeited homes were put up for auction. They weren’t listed on Multiple Listing Service listings like they are now.

And Hennepin County isn’t the only government trying to make change. In 2012, The City of Minneapolis launched the Green Homes North initiative . Through it, almost 20 developers got funding to build more than 100 energy efficient homes in north Minneapolis.

Meanwhile, non-profits Project for Pride in Living and Urban Homeworks have teamed up to completely renovate single-family homes throughout the area. Their Northside Home initiative also offers home ownership and financial coaching.

But are people actually buying all of these newly renovated homes?
Project for Pride in Living says last year, around 21 percent of the people who received their coaching did end up buying.

Israel is seeing similar success.

“We have access to something called InfoSparks,” she said, pulling up information on her phone.

According to InfoSparks, there were 43 homes for sale Friday in the 55411 zip code, which covers the Hawthorne, Jordan, Near North, and Willard-Hay neighborhoods.

“The average days on market is just 18,” Israel said. “Comparing it to the whole City of Minneapolis, homes are staying on the market for 21 days. So it’s really not much of a difference at all.”

But there is one major difference.

“In general, median sale price in the City of Minneapolis at all, is $269,000” Israel said. “If we’re talking north Minneapolis, median sale price is $175,000.”

On Tuesday, HomeSpotter Real Estate, an app featuring a built-in chat system for buyers and realtors, showed 23 homes for sale in 55411. More than 60 percent of them were listed under $200,000.

The home on Colfax Avenue North fits into the trend. Friday, it was listed at $175,000.

By Tuesday, the property’s status was “contingent,” meaning the seller has accepted an offer but the deal isn’t finalized yet.

Credits: kare11.com

The post Newly renovated homes on the market in north Minneapolis for under $200K appeared first on National Association of Real Estate Brokers .

For Some Cincinnatians, the Home Buying Process is an American Dream Deferred

Mon, 06 May 2019 14:19:00 GMT

By: Nick Swartsell

Fewer black Cincinnatians own their own homes. The reasons why are complex — and some go back decades

Buying a home is often framed as a quintessential part of the American dream.

But data shows that the dream doesn’t manifest itself equally for everyone in Cincinnati. About 24 percent of black households in the city owned a home in 2017, for example. Meanwhile, roughly 50 percent of white households in Cincinnati lived in a home they owned that year, according to an aggregate of five years of American Community Survey results from the U.S. Census Bureau.

So why do so many fewer black residents in Cincinnati and elsewhere across the country own their own homes? The reasons for the disparity are complex — though some are linked to decades of past discrimination.

“I’m struggling mightily with the home-buying process,” says Brandon Davis, who has been house hunting since 2015. Davis, who is black, grew up and raised his now-teenaged children in predominantly black Madisonville.

Davis first set his sights on purchasing a house just down the street from the home he is renting, a couple turns off Whetsel Avenue. The small, one-story abode with faded white wood panels and purple-blue trim was vacant and for sale for $22,000.

Davis applied for a loan, figuring he would buy the house and do the necessary repairs with the help of a friend who was a seasoned contractor.

Working for a nonprofit that helps former prison inmates transition to life on the outside, Davis has a stable, midrange income — he easily qualified for a car loan for roughly the same amount as the house soon after. But home loans are more stringent and he was turned down, likely due to its small sum and the condition of the property.

Feeling ties to the neighborhood, he looked elsewhere in Madisonville.

Plenty of folks are buying in the neighborhood and the number of mortgages issued have increased, going from 72 in 2014 to 134 in 2017. But most home loans aren’t going to black residents.

Despite the fact that the neighborhood is 59 percent black, only 30 of 433 mortgages worth $52.8 million issued between 2014 and 2017 in the full Census tracts that make up the neighborhood went to black home buyers, according to data from the federal government related to the Home Mortgage Disclosure Act.

That pattern has repeated itself in a number of neighborhoods in Cincinnati.

As prices have risen, Davis has had little luck buying in Madisonville and has since expanded his search to more expensive houses that need less work in other neighborhoods, including Avondale, South Cumminsville and East Westwood.

He has watched houses he’d like to buy go off the market before he could view them and has seen listings go from “for sale” to “pending” within hours of calling about them.

Much of that may just be the difficulty of buying in a hot market, he says. But some of it feels like something else to him.

Ownership Challenges

For a number of reasons, the difficulties of home buying are often compounded for people of color.

A pervasive wealth gap and paucity of financial services in low-income and many black communities contributes to the home ownership chasm, experts say. Plus, a lack of loans under $50,000 often block prospective home buyers from buying property in lower-income neighborhoods, as Davis has experienced.

And getting a home isn’t the end of the struggle. Sometimes, less-ideal means of securing homeownership via nontraditional sales like land contracts translate into difficulties down the road.

Studies show that properties in predominantly black areas in Cincinnati don’t gain equity at the same rate properties in other neighborhoods do — if they gain any at all — leaving black homeowners with less wealth accumulated over time and less ability to move into more desirable neighborhoods.

“Starting with racism, starting with an economic deficit for moderate-income people and then oversight (by the federal government) that does not take equity into consideration, all of those things are challenges for homeownership,” says Rick Williams, president and CEO of the Home Ownership Center of Greater Cincinnati, a nonprofit that provides guidance for prospective home buyers. “It can make the American dream of homeownership fake for minorities and moderate-income people, because what is supposed to come with it after the closing doesn’t.”

Williams is quick to point out that not all African Americans are also low-income, but says that a number of difficulties with the home-buying process can follow higher-income black home buyers as well.

There are places like the Home Ownership Center where potential home buyers can find help, as well as city programs that offer down payment assistance and other aid. There are also nonprofits like Housing Opportunities Made Equal Cincinnati (HOME), which advocates for changes that could boost equity for minority and low-income home buyers in the long term.

Despite those efforts, though, many black residents of Cincinnati still face a tough time buying a home — a dynamic borne out by the statistics showing the gaps between minority and white homeownership rates.

Gaps in Lending and Borrowing

There are a number of reasons why these disparities exist.

Unless a potential homeowner has tens or hundreds of thousands of dollars to spend outright, they will likely need a home loan to purchase a house. But home lending has a long, fraught history in the U.S.

In the 1930s, the Federal Housing Administration drew up maps categorizing neighborhoods made up of minority residents as “high risk” for lending — a practice called “redlining” that set socioeconomic patterns of segregation in many cities for decades to come. If a neighborhood was redlined, the federal government often wouldn’t insure private loans made there.

That drove widespread disinvestment in many predominantly low-income and minority neighborhoods. For decades, families couldn’t get loans to buy homes, and couldn’t finance renovations on homes they already owned, playing a part, along with white flight, in the physical and economic decline of many inner-city communities.

“Generally speaking, we always go back to redlining,” says HOME CEO Jeniece Jones. “That’s our jumping off point — did communities develop as integrated neighborhoods that allowed African-Americans to build wealth? Mostly they didn’t due to overt discrimination.”

Compounding the racial lending gap, and later the wealth gap, the federal government underwrote many millions of dollars in low-interest home loans to returning GIs following World War II — almost all to white home buyers and almost all in the suburbs far from where black residents were concentrated.

Discriminatory loan practices were common up until the 1970s, when Congress passed a bevy of housing discrimination protections.

Some say the practices didn’t fade away when Congress passed fair lending laws, however. As recently as three years ago, the federal government alleged some banks’ lending practices still contributed to racial disparities in Cincinnati.

In 2016, two area banks owned by the same family — Union Savings Bank and Guardian Savings Bank — settled a lawsuit brought by the federal government over charges that their practices violated the 1974 Fair Housing and Equal Credit Opportunity Act.

Federal attorneys pointed out that the bank opened 26 branches in majority white neighborhoods but hadn’t opened any in black neighborhoods and had received only about 2 percent of its mortgage applications from majority black neighborhoods. The banks strongly denied allegations of wrongdoing, but under a settlement, agreed to invest $9 million in minority neighborhoods in Greater Cincinnati.

Partly as an effort to mitigate the effects of redlining, the federal government has for decades tried to incentivize lending in low-income and minority communities via a law called the Community Reinvestment Act. But that has its own complications. The CRA requires banks to invest in low-income, minority neighborhoods. Many of the loans available through the law, like FHA loans, allow buyers to put down smaller down payments. That’s good in the short term, Williams says, but can have long-term limitations.

“The products that you will be funneled into are the ones that require low down payments,” he says. “That’s beneficial at the moment of closing. But after that your equity is limited.”

The Wealth Gap

Even with laws promoting fair lending, disparities persist.

Data collected by the federal government in accordance with the 1975 Home Mortgage Disclosure Act shows home loans sold in the Greater Cincinnati Metropolitan Area. But it presents only a partial picture.

Despite making up more than 15 percent of the region’s population, black home buyers received only about 3 percent of the region’s conventional home loans in 2017, HMDA data reveals. But they also applied for many fewer loans.

When it comes to government-backed mortgage programs such as Federal Housing Administration and Department of Veterans Affairs loans, black residents did better, but still didn’t apply for or receive mortgages in proportion to their share of the population, as whites did.

But that data isn’t the total story— it doesn’t control for things like credit scores and other key variables that determine when someone might seek a mortgage and whether they will be successful in obtaining one.

Those variables, in turn, have a lot to do with wealth.

Nationally, black households in recent years had an average net worth of $9,211 and Hispanic households had a net worth of $12,458. White households, meanwhile, had an average net worth of $132,483.

That’s important because some research suggests that parental wealth is strongly correlated with an individual’s likelihood of buying a home.

A forthcoming study by University of Cincinnati Lindner College of Business professors Mike Eriksen and Shaun Bond, for example, suggests that parental wealth may be among the largest factors explaining the gap between white and non-white individuals in the ability to purchase and keep a home. Their research shows that having a parent with at least $75,000 in non-retirement financial wealth increases the likelihood of a person moving from renter to owner.

“Despite finding a strong explanatory role of parental attributes in describing the wealth racial gap in home ownership rates, it would be incorrect to conclude that racial identity, or even discrimination, does not matter as much as we originally thought,” their study concludes. “…Disparities in how minorities currently are or have been treated in the past could directly result in the observed differences in wealth, and lead to even further divergence in home ownership rates in the future without intervention.”

Obstacles to Building Credit

One of the reasons banks have given for the paucity of loans to minorities in cities across America and why minorities proportionally seem to apply for fewer of those loans in the first place involves data we don’t get to see — credit scores, debt in proportion to income and other financial information for applicants.

Even with that explanation, some research has suggested that credit rating systems can disadvantage people of color.

One of the reasons for that, HOME’s Jones says, is because many people of color are often locked out of traditional credit-building opportunities.

Nationally, 17 percent of African-Americans are completely “unbanked,” or not using any form of banking, the Federal Deposit Insurance Corporation found in a 2017 study. That compares to a rate of about 5.5 percent overall and 3 percent for whites. Most of those who are unbanked told the FDIC it was because they did not have sufficient funds for a bank account, though about a third also said it was because they did not trust banks.

Many in moderate-income and minority communities turn to alternative financial services like the check cashing industry, Jones says. Those services charge very high interest rates, and customers are penalized on their credit reports for missing payments but don’t see benefits to their credit for making payments on time.

“We see a lot of people of color who use alternative financial services that don’t really roll up into a credit score,” she says. “If you look at who is unbanked and why, are there brick-and-mortar banks and representation in these communities? Has it created a vacuum for some of those alternative financial services to move in?”

Oftentimes, that is the case.

That vacuum has hazards beyond institutions like payday lending, says Legal Aid Society of Southwest Ohio attorney Steve Sharpe, from subprime loans to alternative home buying methods like land contracts.

Sharpe has been working on the latter issue for several years. The sale of those contracts picked up in the years after the Great Recession, when investment entities scooped up distressed properties for cheap. Some then turned around and sold them on contracts for five times the price while requiring that the buyer pay rent and upkeep costs while withholding ownership and the title to the house.

That, Sharpe says, is the worst of both worlds. The resident often can’t get loans to fix up and maintain their house and can’t borrow on its equity, but they’re still responsible for all the costs of owning it.

Eventually, the contracts often prove untenable, and the residents lose their home.

“The problem is, you’re in this netherworld where you will have the obligation to repair a property, but you don’t have the title and the access to city programs,” Sharpe says. “Sometimes, it’s challenging to even get a contractor to work on your property when you don’t have a title. It’s a legal limbo.”

Geographic Disadvantage

The dearth of options or knowledge about options can lead prospective home buyers in low-income and minority communities to take on bad deals, the Home Ownership Center’s Williams says.

“Because we’re talking about a part of our community that is used to being told ‘no,’ they welcome a ‘yes,’ ” he says. “Without the foundation of education for what they should expect, they go for the ‘yes’ without knowing it’s not the best ‘yes’ they can get.”

That danger doesn’t end if a person does find credit at a traditional bank — even a great one — he says.

“That ‘yes’ could be at any part of the process,” Williams says of less-than-ideal options many black prospective home buyers face. “It could be the realtor that says, ‘You should look at these neighborhoods,’ when you don’t have to look at just those neighborhoods. It could be that you don’t get the luxury of buying a house close to your job, because your job changes too regularly. Unlike a lot of others buying homes, you might have a job, not a career. You’re buying homes on bus lines because your transportation options are limited. All of those things kick into the decision making, so you get relegated to certain geographic places.”

And getting relegated, so to speak, has its costs in neighborhoods with high levels of long-established black homeowners like Mount Auburn, Bond Hill, Avondale and others.

A study released earlier this year by the Brookings Institution found that homes in the Cincinnati Metropolitan Area’s predominantly black neighborhoods appraise for roughly $10,000 less than comparable homes in majority white neighborhoods. That means less equity for homeowners, which means they may stay in place longer instead of trading up to a better house in a choicer — often whiter — neighborhood.

“According to our analysis, differences in home and neighborhood quality do not fully explain the devaluation of homes in black neighborhoods,” the study’s authors wrote, before concluding, “laws have changed, but the value of assets…are inextricably linked to the perceptions of black people. And those negative perceptions persist.”

All of those factors come into play in neighborhoods where Davis has been looking for a home, sharply limiting the number of minority homeowners in those places.

As interest has surged in Davis’ first choice of Madisonville, so have home prices. That’s caused him to look elsewhere, something he’s been reluctant to do, especially when homes go off the market days or even hours after he finds them.

“It’s asking a lot to vet a neighborhood, see how the commute to work works, ask high school kids to change schools and make a 10 to 30 year decision within a day or two,” he says.

Like Madisonville, other places he has looked have a lack of black residents applying for and receiving home mortgages — though in some cases, hardly anyone is applying for them at all.

Neighborhood to Neighborhood

East Westwood, a predominantly-black neighborhood of about 2,400 people where Davis also saw a home that struck his interest, had just eight mortgages sold between 2014 and 2017 worth a total of $511,000.

The four Census tracts that make up Avondale, meanwhile, saw 67 conventional or FHA mortgages written between 2014 and 2017. In a neighborhood of 12,000 people that is 90 percent black, 26 of those loans went to black homebuyers. The neighborhood’s median household income of $18,000 a year is dwarfed by the median income of those receiving the loans — more than $60,000 a year, federal data shows.

Other neighborhoods, of course, see many more loans, and a select few, like Bond Hill, see mostly black home buyers. In 2017, the diverse neighborhood saw 51 mortgage loans worth $6.3 million. Thirty-two of those loans went to black borrowers.

But the bulk of the mortgage action in Cincinnati is taking place for white borrowers.

Across town in Mount Washington, which is roughly the size of Avondale with about 11,700 people — 88 percent of them white — there were 124 mortgage loans written in 2017. Almost all of those loans went to white borrowers.

The pattern repeats itself across Cincinnati. Predominantly white Hyde Park, home to about 900 more people than Avondale with a median household income of $74,000 a year, received almost 11 times the number of mortgage loans — 293 — than Avondale did in 2017. Only three of the recipients of those mortgages were black.

In some ways, it’s not a surprise. A borrower needs income or wealth to borrow, and a 2015 CityBeat analysis found that nine of the city’s 10 lowest-income neighborhoods were predominantly black, while nine of its 10 highest-income neighborhoods were white.

In a few of those low-income neighborhoods, new development has exploded. And when it does, it can leave low-income minority residents behind.

Over-the-Rhine, a predominantly black neighborhood that has seen a loss of black residents and an influx of white residents in recent years, saw 405 mortgages between 2013 and 2017, federal data shows. Of those, only 12 went to black home buyers. In 2017, the median income of borrowers seeking loans in the neighborhood was $147,000 — up from $80,000 in 2013 in a neighborhood with a median household income of about $15,000 as of the 2010 Census.

Walnut Hills saw a similar trend — just 20 black borrowers were among the receivers of the neighborhood’s 214 mortgages worth $39.3 million sold between 2013 and 2017.

The economic disparities and gaps in mortgages between whites and minorities are tightly intertwined. The stacked economic disparities facing many people of color in Cincinnati can have huge impacts on efforts toward homeownership, which, ironically, is one of the major ways individuals and families build wealth in the American economy.

Course Correction

However grim the picture seems, Williams, Jones and others urge looking beyond the problems and toward solutions.

For Williams, that’s about educating home buyers — especially those who are people of color — about their options, their rights, and how they should be treated. That way, if they feel something isn’t right with a lender, a realtor, an inspector or some other part of the process, they know they can go somewhere else.

Jones points to alternatives in the lending and credit systems, like the Credit Builders Alliance, a group that works with local nonprofits to help rebuild credit in underserved communities.

She also says that investments by some area banks in low- and moderate-income communities show promise.

Greater Cincinnati’s largest bank, Fifth-Third, was dinged by the Federal Reserve under the CRA in 2013, getting a “needs improvement” rating which regulators chalked up to violations of the fair housing and lending laws. The bank’s rating moved to “outstanding” last year, mostly on the strength of a commitment to spread $30 billion in investment among low- and moderate-income communities throughout its branches in 10 states.

Community investment by banks is great, says Jones. But the proof will be in the pudding.

“There appears to be some real thoughtfulness around agreements that some of the larger banks have entered into,” she says. “These investments need more light shone onto them. There (is) some regional discussion about investments, but we need it block by block. That’s what I’m looking for. I need to be able to get in the car and go over and say, ‘This is happening here.’ ”

Jones and Legal Aid’s Sharpe also point to opportunities for smaller-value loans — the kind Davis wanted in order to buy that fixer-upper in Madisonville years ago — as potential ways to help boost and maintain homeownership for people of color. Generally, lenders aren’t much interested in home loans under $50,000, Sharpe says.

“If you’re in a community where home values aren’t through the roof, you don’t really need a high-value loan,” Jones says. “Those low-dollar loans are really something there needs to be more of. There are lots of families that can benefit from that.”

There are also hyper-local efforts run by community development corporations like Price Hill Will, which has a homesteading program that has helped some low- and moderate-income residents in the neighborhood transition to sustainable homeownership. And in Lower Price Hill, the Community Learning Center at Oyler School has partnered with Habitat for Humanity to help families of Oyler students own their own homes. But those efforts will need much more support — and iterations in other neighborhoods — to address the larger disparities.

Williams cautions that the home ownership gap is part of a larger systemic set of problems, however, and can’t be considered in a vacuum apart from concerns about transportation, food access, wage disparities and other issues.

“I think it is important not to isolate homeownership as something that, if it is fixed, then the American dream of homeownership can work for African-Americans,” he says. “Home ownership is a part of economic inclusion. Economic inclusion as a whole has to be fixed for homeownership to work. When it isn’t fixed, home ownership can become a problem and a burden, because it can’t support someone who does not have economic accesses.”

Credits:

Nick Swartsell | CityBeat

The post For Some Cincinnatians, the Home Buying Process is an American Dream Deferred appeared first on National Association of Real Estate Brokers .