Lessons Learned Are Crucial to Rebuilding Homeownership Opportunities for Latinos, Says NCLR

In a testimony today before the U.S. House of Representatives Committee on Financial Services, NCLR (National Council of La Raza), the largest national Hispanic civil rights and advocacy organization in the U.S., emphasized the importance of keeping elements of our nation’s financial system which have worked well for underserved populations while making reforms that promote sustainable homeownership opportunities for communities of color as Congress considers the future of housing financing in our nation.

“While rampant abuses in the housing market have created a crucial need for reform, we have also seen positive innovations in home financing over the last ten years which have made it possible for millions of low-income and minority families to buy their first homes. Housing counseling, flexible underwriting, and nontraditional credit have opened up homeownership in a sustainable manner and should be the foundation on which we rebuild our mortgage finance market,” said Janis Bowdler, Deputy Director of NCLR’s Wealth-Building Policy Project.

At the hearing, Bowdler urged Congress—when considering reform measures—to ensure that qualified Hispanic families of modest means have the opportunity to buy a home with a fair and affordable loan. She outlined six principles to guide the debate on the future of home lending:

* The federal government must have a role in providing liquidity and innovation in the mortgage market.
* Mortgage and finance housing credit should be equally accessible and available to all communities and qualified buyers, including those who are creditworthy but may be considered hard to serve.
* Standard and fiscally sound, yet innovative and sustainable mortgages should be the norm.
* Diverse delivery and outreach channels must be incorporated, making it easier for nonprofit organizations, homeownership counseling agencies, credit unions, and other nonprofit lenders to reach potential homebuyers with information about safe, affordable mortgage products.
* Predatory lending should be eliminated with a zero-tolerance policy for discrimination and unethical lending practices.
* Affordable rental housing is critical to creating sustainable homeownership opportunities; both must be incorporated into a seamless national housing policy strategy.

“All families will benefit when we have a robust housing market that delivers a steady flow of affordable credit on fair terms in all corners of the country. Congress should establish policies and target investment so that homeownership is a viable opportunity for low-income, minority, senior, and immigrant borrowers who are traditionally underserved by the private market,” said Bowdler.

Janis Bowdler’s testimony is available at www.nclr.org, along with previous congressional testimony and NCLR publications on this issue including the most recent, The Foreclosure Generation: The Long-Term Impact of the Housing Crisis on Latino Families and Children.”

Leave a Reply