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QUEENS CHRONICLE, Thursday, November 2, 2023 Page 12
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Housing disparities persist for minorities
AG James releases report on homeownership discrimination by Naeisha Rose Associate Editor
A report released by the office of state Attorney General Tish James Oct. 24 says the racial disparities between people of color, mostly Black and Latino New Yorkers, and their white counterparts is widening in terms of homeownership, and costing the minority groups $200 million over the course of their mortgage loans. There were 16,000 fewer applicants of color applying for home mortgage loans statewide from 2020 to 2021 despite the government requiring lenders to offer the lowest interest rates in years during the Covid-19 pandemic. That resulted in a loss of $44 million in estimated annualized savings across the state, according to the OAG report. The average 30-year fixed-mortgage rate was 2.65 percent in 2021. In 2019, rates were nearly double that and they have nearly tripled in 2023, according to data from Business Insider. Blacks and Latinos, and in some cases Asian Americans, who did apply for home mortgages were more likely to be denied and the few that were approved received higher prices for their loan products and more costs associated with fees even when underwriting factors such as credit scores, debt-to-income ratio, loan-to-value ratio and application year, the OAG report continued. That was true across the board in every region of the state. White applicants who had the same background as their Black and Latino counterparts were more than twice likely to own a home in comparison, they had better refinancing options and they paid less in fees and home insurance, the report added. “Owning a home is an essential
part of achieving the American dream and building wealth to pass on to future generations,” said James in a statement. “Unfortunately, unequal access to affordable credit is still pervasive across our state, reinforcing the legacy of segregation, leading to a disparity in homeownership, and fueling the racial wealth gap.” Data in the report stated that Black and Latino borrowers were charged $4,200 more in interest rate payments over the course of their loans and an additional $900 in other costs and fees compared to white and Asian borrowers from 2018 to 2021, costing them $200 million more in interest and other costs and fees with loan terms of 10, 15, 20, 25 or 30 years. Applicants of color also have a 21 percent greater probability of having their loan refinancing applications denied compared to white applicants. Asian Americans with a 670 credit score were denied at a higher rate — more than 25 percent — for home-purchase loans, followed by Blacks and Latinos — approximately 24 percent — than their white counterparts, about 23 percent. Asian Americans with credit scores of 670 to 699 had their applications denied at a rate of 20 percent, followed by Black and Latinos, at more than 15 percent, and their white counterparts were denied a little over 10 percent of the time. Blacks, Latinos and Asians were denied more than 5 to over 10 percent of the time compared to their white counterparts with credit scores ranging from 700 to 779, whereas their white counterparts were denied a little over 5 percent if not less. Blacks, Latinos and Asians were denied at a rate of 10 percent or more
A report from the Office of the state Attorney General says that even when people of color have the same credit score as their white counterparts they get denied for home loan purchases at a higher rate.
credit scores were denied mortgages, not just individually, but in neighborhoods where they were the predomina nt popu lat ion. Government policies were approved to erect highways to separate white A me r ica n s f rom poor foreigners and minorities. L e n d e r s we r e directed to call predominantly Black neighborhoods like Long Island City, Laurelton and sections of Flushing and Corona, as well as the Hammels part of the Rockaway A map depicting redlining in Queens using data from 1934. IMAGES COURTESY NYS Peninsula, which h a d low-i n c o m e when they had a credit score of 800 and Latino New Yorkers can afford laborers from Germany, Poland, Ireto 850, whereas their white counter- to live and stay in their communities land, Great Britain, Italy, Russia, parts were denied at a rate a little will require solutions from all levels Finland, Spain and France, red zones, places too risky for investof government.” over 5 percent. City Councilwoman Nantasha ments, according to an interactive “The Attorney General’s thorough analysis unequivocally shows Williams (D - Queens Village) panorama created by the University of Richmond in Virginia called the racial disparities in homeowner- concurred. “ ... This issue hits close to home Mapping Inequality: Redlining in ship and home financing throughout New York State,” said Assemblyman for my district, which boasts as one New Deal America, using data from Clyde Vanel (D-Queens Village), of the highest population of black 1934. A section of Forest Hills was who represents a predominantly homeowners in the country,” WilBlack District 33. “Homeownership liams said. “A recent census reported green zoned because it had only represents a cornerstone of the in The New York Times even indi- wealthy white Americans. While the Supreme Court ruled in cated that black resiAmerican dream, dents are leaving 1948 that racially restrictive housing, yet this report paints New York due to or directives by homeowner associaa disheartening picwning a challenges related to tions were unenforceable, white ture where individuhomeownership and homeowners who sold or rented to als of color a re home is ... f i n a n c e s . T h i s Black, Chinese, Jewish and Japanese denied this dream. u n d e r s c o r e s t h e people from across the country We must focus our the American pressing need for would end up with voided contracts, efforts to rectify this intensive efforts to according to a 2021 NPR report. imbalance and pave Dream ... ” James believes subsidizing or eradicate these disthe way for a just — Tish James, parities. We must providing down-payment support and inclusive future state attorney general work collectively to for first-generation homeowners; for ever y New c r e a t e a f u t u r e funding community development Yorker.” City Council Speaker Adrienne where everyone, regardless of race financial institutions that lend to Adams (D-Jamaica) shared the same or ethnicity, enjoys equal opportuni- historically excluded communities; ties in homeownership and fair lend- passing public banking legislation sentiments. that support entities that construct “The Attorney General’s report ing practices.” The report illustrated that the affordable housing; strengthening emphasizes how the pathway to homeownership is increasingly out compound effects of redlining, disin- tools to address discriminatory of reach for Black and Latino com- vestment in urban centers, urban practices; and supporting initiatives munities due to racial discrimination renewal projects that destroyed that ensure all New Yorkers have and barriers to funding and access,” neighborhoods and racial restrictive access to local banking services are said Adams. “The significant exodus covenants have all played a factor in a just a few ways to address the of Black New Yorkers over the past the lack of access people of color widening homeownership gap for two decades is a consequence of that have to obtaining homeownership, people of color. “This report makes it clear that increasingly narrow path and a which also resulted in a lack of trust our state must do more to provide broader affordability and housing in banks. The American Housing Act in better resources for homebuyers and crisis that impacts all New Yorkers ... “This Council is proud to have 1949 expanded the federal govern- strengthen housing laws to help allocated over $16 million in the Fis- ment’s role in housing, resulting in empower more New Yorkers,” James cal Year 2024 city budget to a vari- “slums” being decimated via autho- said in a statement. “My office ety of initiatives to assist current and rized use of eminent domain, which remains committed to fighting houspotential homeowners, including displaced 300,000 people by 1979, ing discrimination in all forms, and I home loan, foreclosure prevention, according to the Massachusetts Bud- look forward to working with my partners in government to address and emergency repair programming. get & Policy Center. Q Well-off minorities with good this problem.” Ensuring that generations of Black
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