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Increasing Black Home Ownership

Anthony O. Kellum

Anthony O. Kellum - President of Kellum Mortgage, LLC Advocate for Fair Lending, Speaker, Author, TV Personality NMLS # 1267030 NMLS #1567030 O: 248-599-1624 E: anthony@kellumMortgage.com

As we endone year and quickly approach another… it is a great time to revisit the gapbetween Black and white home ownership and what we can do to close it. This hasbeen an ongoing debate for far too many years and as we broach upon a new administration,new year, new challenges and hope for a brighter future the debate continues.


In previous articles ithas been my goal to bring awareness and impose the importance of homeownershipand how owning a home can build long lasting generational wealth. This article aimsto continue the trend.


With all of the stridesmade within the Black community the disparities of home ownership within ourcommunity are still staggering. Closing the Black-white home ownership gap is anessential gauge of whether we are on course to be a fair, just society withequal access to everyone (Article: Urban Institute, Reducing the Racial HomeOwnership Gap.)


As a quick re-visit to the most recent economicand housing downturn from 2008, the Black community was hit harder than otherracial groups. At the peak of the bubble, Black homebuyers disproportionately boughthomes at higher rates than their white and Asian counterparts.


In addition, they werealso the victims of predators offering sub-prime loans (a loan offered aboveprime to people who do not qualify for a prime loan) even for people whoactually qualified for prime loans. Also, Black homeowners were aggressively soughtafter for unsafe refinance products which eliminated their equity and fueledthe home foreclosure crises the country experienced at large... (Article: UrbanInstitute, Reducing the Racial Home Ownership Gap.)


Fast forward to todayand how we can stop the proverbial bleeding? Below are three ways to lessen thegap.


Outreach and Education: Lendersshould continue to improve outreach programs, providing education on the downpayment requirements and also explaining the misconceptions about theimportance of down payments. Potential home buyers should



seek out assistanceprograms ~ there are funds available that go unused because people are notaware of the programs available.


Loan Officer DiversityInclusion: It sounds like a cliché but enhancing diversity within thelending industry. Borrowers should seek lenders with a diverse pool to choosefrom. Minorities are expected to be the majority by 2025 and the lendingindustry should reflect the changing demographic. This will also build trustand inclusivity.


Supply and Demand: Affordabilityand accessibility are at the forefront of creating a more equally yoked buyingprocess. States should implement their own fair housing rules and regulations.Buyers should also do their own research to determine what programs areavailable and seek lenders who embrace the changing demographics.


Reforms are neededacross the spectrum to ensure the millions of people who are creditworthy gainaccess to fair, stable, affordable and safe home ownership opportunities.


“The Time isAlways Right To Do What is Right.”

Dr. MartinLuther King, Jr.


Interesting ArticleLinks:

1.   https://www.investmentbank.barclays.com/our-insights/a-growing-divide-how-income-inequality-affects-us-homeownership-rates.html?cid=paidsearch-textads_google_google_themes_housing_reform_us_housing_reform_bmm_978515535359&gclid=Cj0KCQiAuJb_BRDJARIsAKkycUntFrkVfdrQNilXfhMTLwwRjC7-asYLt7EOidGZZ2ixzdZ4nI02tDkaAi6xEALw_wcB&gclsrc=aw.ds


2.   https://www.urban.org/policy-centers/housing-finance-policy-center/projects/reducing-racial-homeownership-gap



Property is Power! is a movement to promote home and community ownership.

Studies indicate homeownership leads to higher graduation rates, family wealth, and community involvement.