BLACK HOMEOWNERSHIP COLLABORATIVE ANNUAL REPORT 2021–22
CONTENTS 2
Letter from David M. Dworkin
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Letter from Co-Chairs
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Urban Institute
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Mortgage Bankers Association
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NAACP
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National Association of REALTORS®
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National Association of Real Estate Brokers
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National Fair Housing Alliance
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National Housing Conference
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National Urban League
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Sponsors
LETTER FROM NATIONAL HOUSING CONFERENCE PRESIDENT AND CEO
David M. Dworkin President and CEO National Housing Conference
As we know all too well, the homeownership rate for African Americans has fallen to a level as low as it was in 1968 when mortgage discrimination was still legal. Many of us have been working on this issue for years. Recognizing that our individual efforts would be more productive through collaboration, we came together to form the Black Homeownership Collaborative. The Collaborative is led by a steering committee consisting of NHC, the Mortgage Bankers Association, the National Association of Real Estate Brokers, the National Association of REALTORS®, the National Fair Housing Alliance, the NAACP, and the National Urban League, guided by research from the Urban Institute. NHC is proud to also serve as the Executive Secretariat, helping coordinate and staff our work. Together, we agreed on an audacious goal of 3 million net new Black homeowners by 2030. We also agreed that we cannot reach that goal without significant change. That change is cataloged in our 7-point plan and supporting recommendations. To achieve our goal, we are focused on tangible, actionable and measurable steps that will move the dial and get us there. Working together, we will achieve this goal and build momentum toward a future where the American Dream is truly available to all Americans.
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Working together, we will achieve this goal and build momentum toward a future where the American Dream is truly available to all Americans.
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LETTER FROM THE CO-CHAIRS
Steve O’Connor
Cy Richardson
Senior Vice President
Senior Vice President for Programs
Affordable Housing Initiatives
National Urban League
Mortgage Bankers Association
As we reflect on the first year of the Black Homeownership Collaborative and our collective commitment to creating 3 million net new Black homeowners by 2030, we understand more than ever the power of unified action to help us achieve our goals. In our first year, we have discussed and debated steps to actualizing our goals and the difficult choices of prioritization and focus. We have forged common ground on strategy and implementation on the steering committee and have found renewed energy in our workstreams and our individual strengths. No one organization can close the Black homeownership gap alone. The Black Homeownership Collaborative creates a dynamic space for diverse stakeholders to chart a course for a more equitable and just homeownership market. We are proud to be unified in our work and we are excited to see the Collaborative advance forward. This report illustrates ongoing efforts to harness our collective strengths to find solutions. We strongly believe that our framework can facilitate further discussions and help build a consensus for national and local stakeholders. It will also provide a clear direction of how to allocate resources and how to work together to reduce racial homeownership disparities. While we gather here in the city of Atlanta, approximately 177,000 Black residents in this market are mortgage-ready today. We must work to address issues from housing supply to access to down payment and stand united in our commitment to advancing opportunities for all communities to thrive and prosper. Together, we will continue to challenge and push back the barriers that Black Americans continue to face on the path to homeownership. We look forward to the impactful movement of the Black Homeownership Collaborative and extend our gratitude to all who continue to work towards a more equitable America.
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Together, we will continue to challenge and push back the barriers that Black Americans continue to face on the path to homeownership.
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A YEAR IN REVIEW ADDRESSING THE RACIAL HOMEOWNERSHIP GAP
URBAN INSTITUTE The Black homeownership rate stands at just 42 percent, lagging the white homeownership by 30 percentage points. The gap is wider now than it was in 1960, when explicit racebased housing discrimination was legal, and Urban Institute research projects the gap will grow without concerted action. To address this concerning disparity, the Black Homeownership Collaborative has established a plan to increase Black homeownership by 3 million net new homeowners by 2030. This could result in 9.456 million Black homeowners and move the Black homeownership rate above 50% for the first time. The Collaborative launched in 2021 amid the COVID-19 pandemic. Even prior to the pandemic, Black households faced systemic barriers to homeownership, including limited ability to save for a down payment, inequitable access to credit, and housing affordability constraints. Once it hit, the pandemic disproportionately harmed families of color, who experienced higher rates of job loss, financial insecurity, and housing instability. The pandemic housing market has been a boon for existing homeowners while rising rents and home prices have put homeownership farther out of reach for many renters. As we mark the first anniversary of the collaborative, rising interest rates coupled with lack of starter homes to buy and continued tight lending standards pose further challenges.
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Strategies to increase the number of Black homeowners aim to both create new homeowners and sustain existing homeowners.
NEW ENTRANTS TO HOMEOWNERSHIP Though precise data on entrances and exits to homeownership since 2019 are not yet available, Home Mortgage Disclosure Act (HMDA) data reveal that 299,093 mortgages to purchase homes were made to Black borrowers in 2020. Applying the typical first time homebuyer share of buyers using mortgages estimated by CFPB to be 45% from 2010 to 2018—we can estimate that roughly 134,592 of those loans were to Black first-time homebuyers.
HOMEOWNERSHIP EXITS Foreclosure rates tend to be higher in zip codes with larger Black shares of the population. But since the pandemic’s onset, foreclosure rates have been low, due to the federal forbearance moratorium and other loss mitigation tools employed by the federal government. Protections against shocks can help sustain homeownership for Black households and contribute to closing the gap.
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Recent Research by the Urban Institute on What Can Close the Gap › CRA lending patterns show that income is not a proxy for race, suggesting the need for better targeting: https:// www.urban.org/urban-wire/communityreinvestment-act-meant-combatredlinings-effects-45-years-later-black › Downpayment assistance targeted to first-generation homeowners could help as many as 5 million households, 34% of them Black, become homeowners. https://www.urban.org/urban-wire/ down-payment-assistance-focused-firstgeneration-buyers-could-help-millionsaccess-benefits-homeownership › Special Purpose Credit Programs can encourage lending to people and places that have long faced disparities: https:// www.urban.org/urban-wire/how-placebased-special-purpose-credit-programscan-reduce-racial-homeownership-gap; https://www.urban.org/urban-wire/ how-people-based-special-purposecredit-programs-can-reduce-racialhomeownership-gap › As part of a partnership with the FHLB of San Francisco to spur mortgage innovation and advance Black homeownership, researchers explore the potential of using alternatives to credit scores: https://www.urban.org/urbanwire/using-rental-payments-mortgagedecisions-could-create-more-inclusivehousing-finance 8
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› Analyzing mortgage denial rate disparities can highlight opportunities for greater fairness in mortgage underwriting, including refinances and home improvement: https://www.urban. org/urban-wire/what-different-denialrates-can-tell-us-about-racial-disparitiesmortgage-market. › Streamlining refinances can help more Black homeowners benefit when rates fall: https://www.urban.org/urban-wire/ streamlined-home-refinancing-programwould-lower-monthly-payments-andprevent-defaults › Automated valuation models (AVMs) may reduce appraisal bias, but measures are needed to ensure disparities are not wired into the models: https:// www.urban.org/research/publication/ revisiting-automated-valuation-modeldisparities-majority-black-neighborhoods › As with extending mortgages, assistance to prevent home loss for Black homeowners also needs to be targeted: https://www.urban.org/urbanwire/how-can-policymakers-ensurehomeowner-assistance-fund-reachespeople-need
Snapshot: City of Atlanta › Black households comprise 44% of the City of Atlanta’s population yet hold just 17% of the primary residence housing wealth. › The Black-white homeownership rate gap is 28.6 percentage points in the MSA and 26.3 percentage points in the City of Atlanta (as of 2015–2019 ACS data). Homeownership rates for both Black and white households have fallen since 2005–2009 period. › Black applicants for purchase mortgages are more than 3 times as likely to be denied as white applicants, with debt-to-income being the #1 reason for denial. More than 1 in 5 Black purchase mortgage applicants were denied in 2020. › Freddie Mac estimates there are 205,700 mortgage-ready Black millennials (age 45 and younger) in the Atlanta MSA.
HOMEOWNERSHIP RATES, BY RACE OR ETHNICITY Asian
Black
Hispanic
Atlanta MSA 79.1%
City of Atlanta 75.5%
67.1%
66.9%
63.5% 57.0%
53.2%
47.1% 46.9%
44.5%
2005–09
White
2010–14
2015–19
38.7% 38.6% 29.9%
2005–09
36.9% 34.9% 30.7%
2010–14
2015–19
Source: American Community Survey. Notes: MSA = metropolitan statistical area. Values calculated using allocation factors provided by the Missouri Census Data Center.
See: https://keys.nationalfairhousing.org/research/ for more information.
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MORTGAGE BANKERS ASSOCIATION MBA continues to promote sustainable and affordable homeownership for underserved individuals and communities across the country through a variety and policy and market-based approaches. Efforts such as our CONVERGENCE place-based programs, the Building Generational Wealth through Homeownership initiative, and the Home for All Pledge, provide opportunities for strategic partnerships, sharing of best practices, and the development of programs that will enhance our work to increase homeownership opportunities. CONVERGENCE CONVERGENCE is a collective impact initiative to increase African-American homeownership and help close the racial wealth gap. CONVERGENCE
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leverages the strength and resources of local stakeholders including lenders, real estate professionals, housing counselors, nonprofit developers, and local government, as well as national partners in the housing ecosystem. CONVERGENCE works to close the information, trust, market, and resource gaps that create barriers to homeownership. There are currently two CONVERGENCE place-based locations: Memphis, TN, and Columbus, OH.
CONVERGENCE Memphis launched in March 2020 in partnership with the Tennessee Housing Development Agency. More than 120 individuals, representing 50 organizations, participate in CONVERGENCE Memphis. In the past year, the initiative focused on community engagement by hosting two homebuyer fairs, a financial counseling and money management webinar, a diversity career fair, an appraiser diversity information session, and a housing design workshop. CONVERGENCE Memphis also supported and participated in several events held by local, state, and national partners. CONVERGENCE Memphis was incorporated as a 501(c)3 in late 2021, established a Board of Directors, and recently hired an executive director.
CONVERGENCE Columbus launched in July 2021 in partnership with the Ohio Housing Finance Agency, and the John Glenn College of Public Affairs at the Ohio State University. Despite launching during the COVID-19 crisis, more than 115 individuals, representing 55 organizations, joined the initiative. A Steering Committee was formed, five workstreams were created, and a strategic plan was developed. Recently, CONVERGENCE Columbus hosted two events; a webinar to inform industry practitioners about the various down payment assistance programs available to buyers and a homebuyer fair to introduce prospective homeowners to the buying process. Additional consumer-facing events, including a workshop on careers in the appraisal industry, are being planned for later in 2022.
BUILDING GENERATIONAL WEALTH THROUGH HOMEOWNERSHIP MBA’s Building Generational Wealth through Homeownership initiative harnesses internal and external resources to help more African-American and Hispanic families become homeowners and close the racial homeownership gap. Through advocacy, partnerships, and connections within the industry, MBA raises awareness of homeownership opportunities, secures policy and program changes to expand homeownership readiness to future borrowers, and assists current homeowners with maintaining and maximizing the benefits of homeownership. Through this initiative, MBA led advocacy efforts for clarity of support for Special
Purpose Credit Programs (SPCP) and is providing education and resources to help MBA members develop SPCPs.
HOME FOR ALL The Home for All Pledge represents the mortgage industry’s long-term commitment to a sustained and holistic approach to addressing racial inequities in housing. The pillars of the pledge include promoting and supporting public policies and industry practices that advance minority homeownership and affordable rental housing; supporting market-based solutions through MBA’s place-based CONVERGENCE programs; championing Diversity, Equity, and Inclusion (DEI) in our workplaces and our industry; and supporting inclusion in singlefamily and/or multifamily housing through other activities. MBA is more than halfway to its goal of having 450 members signing the pledge by the end of 2022.
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NAACP Since its founding in 1909, the NAACP has worked to achieve equity, political rights, and social inclusion by advancing policies and practices that expand human and civil rights, eliminate discrimination, and accelerate the well-being, education, and economic security of Black people and all persons of color. The year 2021 was largely characterized by an ensuing global pandemic and the ushering in of a new Administration. The NAACP continued its work in support of increasing homeownership, and provided supports for homeowners at risk HOUSING SUPPORT GRANTS The NAACP in partnership with BeyGood and VistaPrint provided over $1Million in housing support grants to homeowners and renters who experienced financial hardships due to the Pandemic. › BeyGOOD — In five days, the NAACP received over 25,000 online housing grant applications from across all 50 states. Applications were reviewed and vetted to identify 100 grant awardees for up to $10,000.00 in financial housing support. › VistaPrint — Provided $100,000 in housing support grants to help delinquent homeowners in the Atlanta, Georgia area with up to $10,000 to pay their past due mortgage payments.
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MORTGAGE AND COUNSELING SUPPORT: The NAACP continued its 5-year partnership with Ocwen/PHH Mortgage. During the pandemic, 52 virtual Borrower Outreach Events were held in 24 states using a new virtual platform. These events provided an opportunity for delinquent customers to receive information necessary to navigate the complicated world of loan servicing. Customers were given options available to maintain homeownership from the loan servicer and a HUD approved counseling agency. These events allowed us to continue assisting an even greater number of struggling homeowners to remain in their homes.
NAACP TRAININGS AND SUPPORT The NAACP held a two-part Fair Housing training that was available to our 2,200 Units/branches across the country. The goal of the training was to educate NAACP Units regarding fair housing laws, how to file a housing discrimination complaint and identifying access to housing support grant opportunities in their communities. Over one thousand NAACP leaders and members participated in the two-part training.
ADVOCACY We sought to leverage the strong and early commitment by the Biden administration to elevate racial justice as a top priority; and engaged federal agencies in doing their part to end discrimination and injustice. The NAACP submitted policy recommendations to the Biden administration in
January 2021. Included in the recommendations are two that specifically address housing: › The Biden Administration should direct the HUD Secretary to create a down payment assistance fund to increase homeownership rates and wealth accumulation for Black Households. This support would increase homeownership rates for Black households and should also reduce lender exposure. › Reverse the racist housing policies of the last four years and reverse the July 23, 2020 rule repealing the Affirmatively Furthering Fair Housing Rule.
PRIORITY CAMPAIGN The NAACP launched its 50K and Beyond national campaign in June 2021 to call on President Biden and his administration to cancel a minimum of $50,000 in federal student loan debt. The student debt crisis has had a disproportionate financial impact on Black student loan borrowers. Across all racial groups, Black borrowers hold the most student loan debt. This is especially true for Black women who hold the highest amounts of student loan debt. Most people who owe loan balances greater than $50,000 live in neighborhoods where the median income is $40,000. This debt is indeed a barrier to saving for a down payment and the purchase of a home. Homeownership is one of the main drivers of wealth in this country, particularly across generations. Increasing Black homeownership is a crucial goal in addressing the overarching racial wealth gap. Student loan debt exacerbates existing racial inequities. Elimination of this debt would go a long way toward increasing the homeownership rate for Black Americans, fuel upward mobility and equitable efforts to close the racial wealth gap.
The student debt crisis has had a disproportionate ffnancial impact on Black student loan borrowers. Across all racial groups, Black borrowers hold the most student loan debt. This year saw the launch of the first two phases of this national campaign. The NAACP has activated its network across the country to lobby and advocate on the issues surrounding student debt cancellation. Informational webinars were held that provided background and economic data on the debt crisis. Social media engagement spread across all NAACP platforms. Meetings were held with Congressional and Administration leaders as well as with White House Officials. #CancelStudentDebt
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NATIONAL ASSOCIATION OF REALTORS® Through its advocacy, research, and resources provided to REALTORS®, legislators, regulators, and other stakeholders, NAR is addressing housing and other industry-related challenges that impact homeownership. NAR is committed to comprehensive efforts to advance homeownership opportunities to close the racial homeownership gap. NAR RESEARCH & REPORTS NAR’s research team analyzes and produces comprehensive reports on housing market trends and obstacles for buyers across demographic groups. › Obstacles to Home Buying (April 2022): Both potential and successful home buyers across races and ethnicities surveyed say they have faced obstacles like a lack of affordable homes, a lack of homes that fit their criteria, competing with multiple offers, and saving for a down payment.
› The Double Trouble of the Housing Market (February 2022): A report on the “two troubles” simultaneously impacting the real estate market: record home prices and record low inventory, using data analyzing affordability at different income levels for all active inventory on the market and done partnership with Realtor.com®. › A Snapshot of Race and Home Buying in America (February 2022): A report looking at homeownership trends, mortgage market and affordability by race, and home buyer demographics using data from the NA R2021 Profile of Home Buyers and Sellers, home buyers and fair housing.
NAR’S FEDERAL ADVOCACY TO ADVANCE HOMEOWNERSHIP AND HOUSING SUPPLY NAR advocates for improved access to homeownership, increased housing inventory, and ensuring fair housing for all, in addition to working to address challenges in the appraisal industry. › Advocacy for Improved Access to Homeownership & Solutions to Addressing Housing Inventory Shortages: In May 2020, NAR welcomed over 8,000 members to Washington, D.C. for the REALTORS® Annual Legislative Meetings. REALTORS® engaged with members of Congress and staff to discuss current market challenges, including record-low housing inventory, supply chain issues, affordability challenges, rising mortgage interest rates, housing demand, and fair housing, among other issues.
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› Advocacy Efforts on Specific Legislation: During the legislative meetings, REALTORS® also asked members of Congress and congressional staff to: ` Co-sponsor the bipartisan Housing Supply and Affordability Act, which creates a Local Housing Policy Grant program for cities, states, tribes, and regional associations to enact pro-housing policies at the local level. ` Co-sponsor the Neighborhood Homes Investment Act (NHIA) that would offer tax credits to attract private investment for building and rehabilitating owner-occupied homes, creating a pathway to neighborhood stability through sustainable homeownership.
themselves for discrimination, allowing them to uncover and address internal fair housing challenges. › Real Estate Licensure Reform: New NAR policy urges state REALTOR® associations to examine their state licensure law for fair housing training requirements and increase them if they fail to meet minimum standards. NAR continues to research and make recommendations to states on accountability for licensees found liable for fair housing violations.
` Co-sponsor the GREATER Revitalization of Shopping Centers Act of 2021 that creates a grant within the Section 108 Loan Guarantee Program to incentivize public and private investment in abandoned and underutilized shopping malls. › Appraisal Industry Challenges: There has been a recent focus on the appraisal industry and proposals for reforms on how the property appraisal and valuation process can be improved. NAR engaged with the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) to discuss solutions and potential reforms.
NAR’S ACT! FAIR HOUSING INITIATIVE NAR’s signature fair housing initiative emphasizes Accountability, Culture Change, and Training (ACT!) to advance fair housing in the industry. ACT! initiatives include raising standards for real estate licensees, offering brokerages tools to root out discrimination, and creating new and innovative fair housing training for REALTORS®. Specific efforts include: › Discrimination Self-Testing: NAR has launched a program for brokerages to voluntarily test
› Fairhaven: A Fair Housing Simulation: In November 2020, NAR launched Fairhaven, a new fair housing simulation training that puts REALTORS® in realistic situations where discrimination may occur—from the point of view of both agent and client. › Bias Override: Overcoming Barriers to Fair Housing, launched in April 2022, is a classroom course available for continuing education credit that helps real estate professionals interrupt stereotypical thinking so they can provide equal professional service to every client. 3 BY 30 ANNUAL REPORT
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NATIONAL ASSOCIATION OF REAL ESTATE BROKERS
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WHAT WE DO
NAREB’S FIVE PILLARS
After World War II, the Supreme Court finally passed a ruling that restrictive covenants and private agreements exclude specified races from the ownership and occupancy of real property in exclusively white neighborhoods that were not enforceable under the law. Despite court rulings, discriminatory housing practices still prevailed as equal housing had not yet become reality. It was in this environment of abject racial discrimination that NAREB® was founded in 1947 (Tampa, Florida). NAREB® continues to be committed to the fulfillment of the principle, “Equal Housing Opportunity for All.” From the past to the present, NAREB® remains an association proud of its past, dedicated to its chosen struggle, and unrelenting in its pursuit of “Democracy in Housing.” In the midst of America’s increased racial divide and social inequities, it is important now more than ever, that our collective and organizational efforts work in concert towards our mission of “Democracy in Housing.” Members of NAREB® are referred to as REALTISTS® and represent all professional disciplines within the real estate industry.
In concert with Biden’s Administration of equity and under the leadership of NAREB President Lydia Pope, we launched the One Point Plan through a Five Pillar Strategy for the 2MN5 presents Building Black Wealth Program.
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› Faith Based and Civic Engagement — Over 75% of Black Americans surveyed by Pew Research reported they are affiliated with a religious organization. A large percentage of professional Black Americans belong to a civic or professional organization. Two goals: (1) Educate about homeownership; and (2) Inspire to purchase real estate. › W.I.R.E. — Women Investing In Real Estate focuses on the development of educational tools and techniques for Black Women consumers and Black Women real estate practitioners, to harness their spending power to invest and pursue careers in real estate. The goals are to: ` Increase access to financial information and capital for Black women; ` Increase home ownership and real estate investment for Black women ` Increase developers of affordable housing for and by Black women.
` Senior Citizen Programs Include: ¬ The PLUG (Providing Leverage Understanding and Guidance) ¬ Build It, Keep It, Pass It On
www.nareb.com/5-pillars-of-nareb/
› Government Relations/Advocacy — Through the use of our powerful voice, NAREB will support legislation and regulatory changes designed to increase Black homeownership. Our leading publication, “State of Housing in Black America” (SHIBA) report will continue to educate, inform, and share data that tells the true story about homeownership needs of Black America.
› Diversity, Equity & Inclusion /Small Business ` Educate and Inform Realtists about income generation possibilities available through minority certifications and minority procurement opportunities. ` Identify opportunities for NAREB Realtist to serve on local board and commissions to add our expertise to housing needs in Black communities. ` Inspire the next generation of real estate entrepreneurs on college and high school campuses. Programs Include: ¬ Turn The Tassel, Turn The Key › Multi-Generational Wealth — NAREB has developed age and life-style specific initiatives to reach and inform audiences about wealth building and homeownership: ` Youth Financial Literacy & Leadership Academy ` Millennial & Gen-Z Movement
NAREB LAUNCHES CAMPAIGN TO CHANGE POLICIES AND REGULATIONS LIMITING GAINS IN BLACK HOMEOWNERSHIP. For more Information Visit: https://www.nareb.com/press/nareb-launchescampaign-to-change-policies-and-regulations-limitinggains-in-black-homeownership/
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NATIONAL FAIR HOUSING ALLIANCE The National Fair Housing Alliance (NFHA) continues to expand its efforts to create fair and affordable housing options and eliminate discrimination in housing. In addition to ongoing enforcement and public policy work, several initiatives seek to help close the racial homeownership and wealth gaps by concentrating on lingering systemic issues that continue to fuel inequity in housing. KEYS UNLOCK DREAMS (KUDI) This three-year, 10-city initiative was designed to achieve five goals: to remove structural barriers that perpetuate racial inequality, expand fair and affordable housing options, prevent an unbalanced recovery from the COVID pandemic,
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provide consumers and stakeholder partners with information and resources, and close the racial homeownership and wealth gaps. Through a partnership with the Urban Institute, housing data reports have been released in Columbus, Detroit, Memphis, and Atlanta. 2022 will continue this work in Baltimore, Philadelphia, and Houston. NFHA staff participated in dozens of presentations aimed at educating industry stakeholders on the history of housing and how past intentional discrimination and exclusion directly produce current-day disparities. Our growing network of local, state, and national partners are helping to elevate the conversation on how race-conscious solutions are critical components of achieving equity. One such solution, Special Purpose Credit Programs (SPCPs) can be a meaningful tool. A September 2021 virtual event served as a continuation of this effort leading to the creation of a toolkit designed to provide lenders with a step-by-step guide to creating their own SPCP. By collaborating with the Mortgage Bankers Association and Homeownership Council of America, we hope to reach the broad lending community to encourage the use of SPCPs.
TECH EQUITY INITIATIVE
PUBLIC POLICY AND ADVOCACY
The Tech Equity Initiative is a multi-faceted effort designed to eliminate bias in algorithmic-based systems used in housing and financial services, increase transparency and explainability for AI tools, outline ethical standards for responsible tech, advance effective policies for regulating AI tools, and increase diversity and inclusion in the tech field. The goal is to have our “gold standard” of algorithmic fairness adopted by regulators, developers, and consumers of AI-based systems.
NFHA’s public policy and advocacy team is dedicated to ending housing discrimination and fostering diverse, inclusive communities. The Biden Administration’s racial equity platform set the stage for establishing four primary goals: dismantle racial segregation to offer real choice in housing and create thriving communities, eliminate the dual credit market and create affordable credit for all, strengthen the nation’s fair housing and fair lending enforcement infrastructure, and create greater fairness in the housing and financial services industry. NFHA is also advocating for the highest possible appropriations for fair housing programs and for an expansion of the Fair Housing Act to include protections for LGBTQ+ individuals.
The Tech Equity Initiative is a multifaceted effort designed to eliminate bias in algorithmic-based systems used in housing and financial services, increase transparency and explainability for AI tools, outline ethical standards for responsible tech, advance effective policies for regulating AI tools, and increase diversity and inclusion in the tech field. Major highlights from the Tech Equity team include the launch of the Frontdoor website and the introduction of the Purpose, Process, and Monitoring (PPM) framework. Frontdoor is an interactive web service that quickly connects renters who need support to pay their rent or utilities to programs that can provide emergency assistance, addressing a problem that has become more acute because of the COVID-19 pandemic and the economic displacement that followed it. The PPM framework is a model for auditing algorithmic systems. It provides an approach for evaluating internal controls and mitigating risks that may be inherent in algorithmic systems and can harm consumers.
Prominent achievements over the last year include successful advocacy efforts for confirmation of key political appointees; congressional testimony on housing-related matters; Treasury’s inclusion of NFHA recommendations in the Homeowner Assistance Fund (HAF); crafting key elements of the proposed Downpayment Toward Equity Act; contributions to the Housing is Infrastructure Act, and working with HUD to craft new Affirmatively Furthering Fair Housing rules.
LEGAL AND ENFORCEMENT NFHA announced two notable legal settlements this year — one with Fannie Mae and the other with Redfin. The $53 million Fannie Mae settlement is one of the largest in the history of the Fair Housing Act and was connected to the unfair marketing and maintenance of real estate owned (REO) foreclosures post-financial crisis. The funds will directly benefit 39 harmed metropolitan areas by providing much-needed grants, down payment assistance, and funds for the renovation of homes that languished in foreclosure. The Redfin settlement will result in a change to the company’s inequitable minimum housing price policy and fund compliance and monitoring programs and expand housing opportunities in harmed communities. 3 BY 30 ANNUAL REPORT
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NATIONAL HOUSING CONFERENCE The National Housing Conference is a diverse continuum of affordable housing stakeholders that convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest. Our work on racial equity issues is foundational to our mission. We organized the Black Homeownership Collaborative because we recognized that we are always more successful when we collaborate and leverage each other’s important work. NHC serves as the Executive Secretariat of the Collaborative, providing administrative support to its Steering Committee. HOUSING PRODUCTION › The Neighborhood Homes Investment Act (NHIA) is a tax credit designed to cover the gap between the cost to build or rehabilitate a home and its market value upon completion. Designed to avoid displacement of current residents, the NHIA could help build and rehab as many as 200,000 homes over ten years. With 63% of the eligible census tracts having majority-minority populations, we believe NHIA can be a tool to help close the racial homeownership gap. NHIA is the only legislation unanimously endorsed by the Black Homeownership Collaborative. › NHC is working with the National Council of State Housing Agencies and the Homeownership Alliance to modernize the HOME Investment Partnerships Program (HOME). Successful HOME reform will ensure that federal resources are spent efficiently and go further, creating more affordable housing.
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DOWN PAYMENT ASSISTANCE › One of NHC’s top legislative priorities is the inclusion of down payment assistance targeted for first-generation homebuyers. Robust funding for a targeted national down payment assistance program for first-generation homebuyers is critical to helping us achieve our 3 by 30 goal of three million net new Black homeowners by 2030.
CREDIT AND LENDING › In May 2022, the FDIC, the Federal Reserve Board of Governors, and the Office of the Comptroller of the Currency jointly released a Notice of Proposed Rule Making to unify the CRA rule for all banks in the US. NHC has convened a diverse group of experts to work through the proposed rule and is planning to submit a comment letter which, among other areas, will focus on how the rule can be a tool to create more racial equity home lending.
› In September of 2021, NHC, along with our members, convened a group of experts to talk about the future role of Fannie Mae and Freddie Mac in affordable housing. The convening opened with a conversation between David Dworkin and Acting Director Sandra
Thompson, as well as CHANGES IN HOMEOWNERSHIP RATES, research presentations BY RACE OR ETHNICITY, 1983 – 2021 from experts at Fannie Mae, Freddie Mac, the Mortgage Bankers Association, and US Mortgage Insurers. This was followed by two panels, one from industry practitioners and the other from the regulators. Many of the discussion topics and presentation focused on the priorities of the Black Homeownership Collaborative, such as expanding credit access for communities of color, creative ways outreach and marketing, and systematic barriers to closing the racial Finance Plans for Fannie Mae and Freddie homeownership gap. Mac. The final plans reflected many of the recommendations from NHC on behalf of the Black Homeownership Collaborative priorities, › In April 2022, the Black Homeownership including special purpose credit programs, new Collaborative and NHC held a Fair Housing credit and rental reporting pilots to expand Forum that highlighted ways to increase fair credit building efforts for renters, and lowering access to quality credit in communities of costs for first-time homebuyers through closing, color. Keynote speaker, Michael J. Hsu, Acting mortgage, and insurance cost reduction. Comptroller of the Currency, led discussion on initiatives such as the Community Reinvestment Act and Special Purpose Credit Programs MARKETING AND OUTREACH highlighting efforts to expand access to homeownership for historically marginalized › NHC received funding from the Federal communities. Home Loan Bank of San Francisco to build › NHC led a working group of our members to draft a comment letter on the Enterprises’ proposed Duty to Serve Plans for 2022–2024. The revised plans included many of the recommendations we included in our letter. › FHFA released a first-of-its-kind Request for Information (RFI) on Equitable Housing
a consumer-oriented website to provide Black homebuyers an opportunity to learn about homeownership, the homebuying process, credit and lending issues, and have access to real estate professionals, lenders and homeownership advisors. This site, www.3by30.org, is being launched on the first anniversary of the Black Homeownership Collaborative in Atlanta.
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A YEAR IN REVIEW ADDRESSING THE RACIAL HOMEOWNERSHIP GAP
NATIONAL URBAN LEAGUE Through its designation as a national intermediary by the U.S. Department of Housing and Urban Development (HUD), the National Urban League provides funding and technical support for more than thirty local affiliates in the critical area of housing counseling. This initiative supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to moderate-income renters, and the homeless. The primary objectives of the program are to expand homeownership opportunities and improve access to affordable housing. Affiliate staff counselors provide guidance and advice to help families and individuals improve their housing conditions and meet the responsibilities of tenancy and homeownership. STATE OF BLACK AMERICA: A 21ST CENTURY NUL ECONOMIC EMPOWERMENT AGENDA Powered by the “I am Empowered Community Outreach Campaign,” the League’s Economic Empowerment Agenda is a constellation of programs and partnerships that play a leading role in the economic development strategy for the African American community.
League’s Economic Empowerment Agenda is a constellation of programs and partnerships that play a leading role in the economic development strategy for the African American community. 22
BL ACK HOMEOWNERSHIP COLL ABORATIVE
Both in its history and on-going work of providing knowledge and other resources to African American individuals, families, and other groups in many communities throughout the nation, the Economic Empowerment agenda actively maintains a commitment to the following key activities regarding the promotion of economic well-being and growth: › Providing housing counseling through which homeowners and renters can be advised of their rights and other key information related to achieving household stability. › Leading homeownership education initiatives through which potential homeowners learn the ins and outs of looking for, bidding on, and securing their own homes. › Conducting initiatives in financial education which are designed to increase the financial preparedness for homeownership and other key assets. › Training the unemployed and helping those just entering the workforce to become more proficient in job searches, interviewing, performance, and job retention. › Facilitating urban business growth by combining private, public, and nonprofit sector resources to foster minority entrepreneurship, business development and job creation in historically neglected and economically underserved communities.
› Serving specific community needs through planning, implementing, and evaluating technologies designed to maximize efficiency in relation to literacy, education, employment/ workforce development, skills training, and health program delivery systems. › Giving relevant and marketable training as well as securing employment for senior citizens who are most in need.
The goal of Restore Our Homes is to increase financial stability and property values in African American and other minority communities that were harmed by subprime loans and foreclosures. The program aims to improve the services of Urban League affiliates through technical assistance ensuring that they have capacity and resources to serve communities’ housing needs.
The Economic Empowerment agenda achieves its goals through two methods. The first method is the facilitation of self-sufficiency in its many forms and at all levels of the various communities served by Urban League affiliates. The second is to strengthen the feedback mechanisms between the National Office, Urban League affiliates and the communities they serve to understand and tactically respond to local, regional, and national developments affecting the economic state of Black America.
counseling, homebuyer education, financial education, credit counseling, fair housing advocacy, and foreclosure prevention assistance. Services include:
RESTORE OUR HOMES
› Engaging delinquent mortgage borrowers early so they do not face foreclosure.
The goal of Restore Our Homes is to increase financial stability and property values in African American and other minority communities that were harmed by subprime loans and foreclosures. The program aims to improve the services of Urban League affiliates through technical assistance ensuring that they have capacity and resources to serve communities’ housing needs. This program entails home retention and loss mitigation counseling and client outreach services. Under the Restore Our Homes rubric, Urban League affiliates connect people to housing
› Educating homeowners looking to refinance and provide reliable referrals. › Negotiating with lender/ servicers on behalf of delinquent borrowers to reach sustainable mortgage payment and save their homes. › Intervening with civil and criminal legal action against predatory lenders. › Advocating for legislative reforms in residential lending.
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