The National Association of Real Estate Brokers (NAREB) has declared publicly that it supports the Federal Housing Finance Agency’s (FHFA) proposed rule strengthening and codifying the equitable housing finance plans submitted by mortgage entities Fannie Mae and Freddie Mac as well as the agency’s other measures dealing with racial disparities in homeownership, in a statement issued by its president, Courtney Johnson Rose.
Rose said the plans are designed by the federal government to increase homeownership for families of color and expand opportunities for affordable rental housing. The proposed rule mandates Fannie Mae’s and Freddie Mac’s fair lending and fair housing functions and equitable housing finance plans become statutory requirements.
Plus, the two entities’ operations will receive clearer and more oversight, compliance, and enforcement, Rose said.
“These measures are necessary to address decades of racially biased public policies and private practices aimed at preventing Blacks from being homeowners,” she said. “From rampant redlining to exclusion from Federal Housing Administration loans and benefits of the GI Bill, the federal government is responsible for the racial wealth gap in America. In studies, Federal Reserve Banks acknowledge that racial wealth inequality is massive.”
Published data reveals in 2019, the median wealth for white households was $188,200, compared to $24,100 for Black and $36,100 for Latino households. While Black homeownership dropped nearly 20% since 2008, and despite the contributions of the 1968 Fair Housing Act, over 50 years later, the racial homeownership gap has widened. For example, in 1960, 38% of Blacks were homeowners while 65% of whites were similarly situated but presently the gap is 27%.
Plans backed by the FHFA, and the entities include financial capabilities coaching to build credit and savings; support for locally owned modular construction facilities in communities of color; and increased utilization of Special Purpose Credit Programs to support homeownership attainment and housing sustainability in underserved communities.
“We stand with FHFA and a transformation allowing all Americans to enjoy the American Dream of homeownership,” Rose said.