NAREB® Media

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of Real Estate Brokers (NAREB) has issued a call to action urging the Federal Housing Administration (FHA) to eliminate outdated underwriting rules that can penalize married borrowers.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 This outdated practice restricts mortgage access and severely hurts families trying to become homeowners.”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

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.”