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EGACY Yesterday. Today. Tomorrow.
WEDNESDAYS • July 29, 2020
INSIDE
• Racism and public health issues - 2 • This police process should alarm - 4 Right: Kimberly Jacob Arriola: “Racism exists at multiple levels, and there is work that needs to be done at multiple levels.’
Richmond & Hampton Roads
LEGACYNEWSPAPER.COM • FREE
‘The bedrock of wealth inequality’ JEFF SOUTH
VM - Spring Cambric knows what she will be thankful for this Thanksgiving: the home she is buying with help from Richmond Metropolitan Habitat for Humanity. The single mother of four plans to move into her two-story, iron-gray house in Northside Richmond this fall. “I love it because it will be ours — something that my children can know that we put in hard work to have,” said Cambric, who enlisted in the Navy at 16, spent more than 18 years in the military and now works as a human resources assistant at Fort Lee. Homeownership did not come easy. Cambric, 44, had applied for mortgage loans twice before and been rejected. “They told me my credit score wasn’t high enough,” said the former petty officer, who acknowledged facing financial difficulties after getting divorced. Her past experience with mortgage companies was hardly unusual. Nationwide and in Virginia, African Americans like Cambric were more than twice as likely as non-Hispanic Whites to be denied loans to buy homes in 2019, according to new federal data. Of the approximately 14,700 mortgage loan applications submitted by Black Virginians last year, 11.9 percent were turned down, the data showed. In contrast, of the roughly 70,400 applications from non-Hispanic Whites, 5 percent were rejected. (The denial rates were 9.6 percent for Hispanics and 8.5 percent for applicants of Asian descent.) Racial disparities existed even among applicants with similar income levels, according to data
collected under the Home Mortgage Disclosure Act. For example, among applicants with annual incomes of about $125,000, the denial rates were 8.4 percent for Black Virginians and 3.6 percent for non-Hispanic Whites. Disparities in who gets mortgage loans are not new; they have been evident since the Federal Financial Institutions Examination Council began compiling HMDA statistics in the 1980s. But the 2019 data, released June 24, comes amid a national conversation about racial inequalities and institutional racism. In light of the protests triggered by the death of George Floyd under the knee of a Minneapolis police officer, the latest HMDA numbers take on added meaning because “homeownership is probably the most powerful way to rectify the racial wealth gap,” said Alex Guzmán, director of fair housing for the nonprofit group Housing Opportunities Made Equal of Virginia. Bruce Whitehurst, president of the Virginia Bankers Association, said the #GeorgeFloyd movement has put a focus “on systemic racism relative to the Black community especially, and the need to address and overcome the structural issues that remain to this day.” The persistent racial disparities in home loans reflect the lack of opportunities for many African Americans, he said. “Particularly speaking for myself as a non-Hispanic White, we have to think a lot more about why the differences are there,” Whitehurst said. “I just think we’re at this place where we need to address the structural issues. And I think it’s fair for anyone in the Black community to say, ‘What took you so long to figure
Donetta Williams at the home she bought in March in King William County. out what we’ve known for a long time?'” Experts generally agree that in most cases, homeownership is a tremendous financial boost. “It makes a world of difference in
being able to help not only move up the ladder economically but to help the next generation for transfer of wealth,” said Greta Harris, president
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