Mortgage Bankers Association

A YEAR IN REVIEW ADDRESSING THE RACIAL HOMEOWNERSHIP GAP

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

WHAT WE DO

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.

NAREB’S FIVE PILLARS

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.

› 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. › Diversity, Equity & Inclusion /Small Business

www.nareb.com/5-pillars-of-nareb/

` 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 Programs Include: ¬ The PLUG (Providing Leverage

Understanding and Guidance) ¬ Build It, Keep It, Pass It On

› 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.

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/

A YEAR IN REVIEW ADDRESSING THE RACIAL HOMEOWNERSHIP GAP

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, 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

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.

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.

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.

PUBLIC POLICY AND ADVOCACY

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.

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.