Reducing the Racial Wealth Gap in the Wake of Foreclosures: What is the Role of Affordable Homeownership Programs? Presentation Transcript
Reducing the Racial Wealth Gap in the Wake of Foreclosures: What is the Role of Affordable Homeownership Programs? Pre-Conference Workshop with Community Leaders Christy Rogers The Kirwan Institute for the Study of Race and Ethnicity September 23, 2010 Chicago IL
Home equity and the wealth gap (pre-foreclosure crisis) For every $1 in assets held by African Americans, Whites hold $9 This disparity is primarily due to differences in home equitySource: “Net Worth and Asset Ownership 1998-2000”. Household Economic Studies. U.S. Census Bureau (2003)
Source: Barry Zigas, CFA Comments “Public Input on Reform of the Housing Finance System” July 20, 2010.
Adapted from “Changes in U.S. Family Finances from 2004 to 2007: Evidence from the Survey ofConsumer Finances.” Federal Reserve Board, Survey of Consumer Finances, February 2009. Page A37.
Did you know…? CRL estimates that from 1998 – 2006, only 9% of all subprime loans went to first time homebuyers Majority were refinance loans Refinance loans disproportionately marketed to African American neighborhoods Photo and story credit: Baltimore Finds Subprime Crisis Snags Women --New York Times 1/15/08
Foreclosure rates by race
Wealth loss in communities of color Property depreciation in communities of color related to foreclosures between 2009 and 2012: African American neighborhoods: $194 Billion Latino neighborhoods: $177 Billion …and foreclosures continue…