b'HOUSINGHistorical Barriers and Structural InequalitiesStill Account for Black-White Homeownership GapT he National Association of Real Estate Brokers,arenecessary,saidDonnellWilliams,president In 2019, 10 lenders were responsible for origi-Inc.(NAREB) issued the 2020 edition of its Stateof the National Association of Real Estate Brokers.nating 24% of mortgage loans to Black borrow-of Housing in Black America (SHIBA) report with aThis years SHIBA report lays bare the difficulties. ers. Of those 10, only 3 were traditional deposi-stark warning: Without major changes in public poli- A sampling of the key findings in the SHIBA report,tory banks.cy, restructured mortgage lending criteria, increasedprincipallyauthoredbyVanessaGailPerry,MBA, Black applicants are more than twice as likely to down payment assistance, and an extended forbear- Ph.D., Professor of Marketing, Strategic Managementhave their loan applications rejected. anceperiodneededbyhomeownersexperiencingandPublicPolicy,GeorgeWashingtonUniversity severefinancialburdensresultingfromthepan- School of Business. include: "These disparities persist because of systemic rac-demic, Black American homeownership will continueism and disadvantage that have accumulated over to lag and wealth building plans will remain delayed, The Black population in the U.S. is concentratedtime. At the same time, the industry has failed to severely diminished, or simply out of reach.in major cities. Sixty-two percent of Blacks areacknowledgetheopportunitiespresentedbythis Statisticsoftentimescanbeignoredortabled.concentratedin20MSAs.In2019,25.6%ofmarket segment," stated Dr. Perry.However, when the story is told through the eyes ofthe Black population resided in areas where the youngBlackAmericansexperiencingtherigorsofmedian house price is above that for the U.S.TheBlackAmericanwealthgaprests,inlarge trying to purchase a home for a growing family, you $253,000. part, on the ever-present institutional barriers Black clearly see that structural and institutional remedies The homeownership rate for Blacks who gradu- Americansfaceateverystepofthehomebuying ated from college is only 3.2 percentage pointsprocess. While the second quarter 2020 Black home-higherthanthatofWhitehighschooldrop- ownership rate of 47% reported by the U.S. Census outs. Bureau represents a 16-year high, the rate lags more than 26 percentage points behind the non-HispanicBlack homeowners are less likely to have a col- White rate of 76% for the same period.lege degree.Black Americans must Blacks have a higher share of owner householdsThe SHIBA report also includes recommendations designedtosupportthegrowthofopportunityfor headedbywomenthananyothercategoryof be just as intentional inowner households. Black Americans to purchase homes and to maintain homes if they already own. A few key recommenda-tions are:reclaiming our piece of the Blackborrowerspaysignificantlyhigherrates Institute aggressive loan forbearance and credit for FHA-backed loans, and higher rates for con-dirt that has been denied toventional mortgages. mortgageborrowersreporting mandates to protect Black homeown- In2018,53%ofBlackersandpotentialhomebuyersfromfinancial Black Americans. obtained FHA or VA loans, compared to 23% ofdevastation due to the COVID-19 pandemic.White borrowers.Continue the CARES Act suspension of federalOnly 5% of the conventional market were loans toBlackborrowers,comparedto15%oftheContinued on Page 11FHA/VA market.BODY OF CHRIST NEWS NOVEMBER 2020 5'