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Narrowing Homeownership’s Racial Divide

The Black Homeownership Collaborative (BHC) has issued its 7-Point Plan, a set of seven tangible, actionable and scalable steps that will make it possible to increase Black homeownership by three million net new homeowners by 2030; an increase of more than 10 percentage points in the Black homeownership rate.

The BHC, co-chaired by Mortgage Bankers Association (MBA) SVP of Affordable Housing Initiatives Steve O'Connor, is comprised of organizations committed to addressing affordable housing challenges facing Black communities.

The 7-Point Plan consists of the following components:

  • Homeownership Counseling
  • Down Payment Assistance
  • Housing Production
  • Credit and Lending
  • Civil and Consumer Rights
  • Homeownership Sustainability
  • Marketing and Outreach

The announcement of the 7-Point Plan was made at a BHC-hosted event that included presentations from U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge; Sen. Sherrod Brown; Rep. Tim Ryan; Cleveland State University President Harlan Sands; MBA President and CEO Bob Broeksmit, CMB; and several other housing industry leaders.

"Promoting safe and sustainable homeownership and closing the homeownership gap that exists within minority communities is my top priority as MBA's 2021 Chair," said Susan Stewart, 2021 MBA Chairman, and CEO at SWBC Mortgage Corporation. "The mortgage industry has an opportunity and a responsibility to open the door for those ready and able to buy a home."

According to the BHC’s website, the rate of Black homeownership has plummeted to levels not seen since segregation in housing was legal. Bringing the Black homeownership rate up to that of white households would require increasing the number of existing Black homeowners by approximately five million, an increase of nearly 72%.

The MBA recently established its Minority Homeownership Joint Task Force to provide industry leadership and direction for reducing the racial homeownership gap and promoting sustainable homeownership policies for communities of color. Along with creating the task force, MBA has created two advisory councils on affordable homeownership and affordable rental housing. Both councils unite voices from across the industry to foster progress on housing and rental fronts.

"MBA continues to consult and partner with housing experts, consumer groups, nonprofits, and civil rights organizations to identify and remove barriers to homeownership for minority households," said O'Connor. "I am proud to co-chair the Black Homeownership Collaborative and believe our thoughtful, results-driven plan will increase Black homeownership and help to close the racial wealth gap."

Click here to learn more about the 7-Point Plan.

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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