CBC Mortgage Agency (CBCMA), a nationally chartered housing finance agency and a leading source of down payment assistance for first-time homebuyers, said Marcia Fudge’s swearing in as secretary of the Department of Housing and Urban Development is great news for minority homebuyers, who typically face significant barriers to homeownership. CBCMA also welcomed the president’s recent executive order on redressing discriminatory housing practices and policies.
Fudge, who represented the 11th District of Ohio, was first elected to Congress in 2008. Previously she served in various state and city roles, including mayor of Warrensville Heights, Ohio, where she led the city in shoring up a sagging retail base and providing new residential construction. Among other goals as HUD secretary, Fudge said today she plans to increase fair housing protections and improve access to affordable housing.
In her senate confirmation hearing, Fudge said down payments are the biggest impediment to homeownership for communities of color because “we don’t have the wherewithal, the same kind of income, the same kind of access” as other borrowers.
“It is like we are starting out of the blocks with somebody who is out ahead of us by a hundred yards,” said Fudge, who is a former chairwoman of the Congressional Black Caucus. “Down payment assistance is a major, major impediment. If we could fix that, you would see a tremendous growth.”
Fudge added that the homeownership rate among Blacks right now is the same as it was in 1968 but could be fixed.
“Millions of Americans are struggling to buy a home or keep up their mortgage payments, including a disproportionate number of minority borrowers,” said Miki Adams, president of CBC Mortgage Agency. “Marcia Fudge’s confirmation as HUD secretary and Biden’s commitment to end discriminatory housing practices will widen the path to homeownership and help more families achieve housing wealth. We look forward to working with the new HUD secretary on a range of housing issues.”
Fudge’s confirmation comes after President Joseph Biden issued a memorandum on redressing our nation’s and the federal government’s history of discriminatory housing practices and policies.
“It is the policy of my administration that the federal government shall work with communities to end housing discrimination, to provide redress to those who have experienced housing discrimination, to eliminate racial bias and other forms of discrimination in all stages of home-buying and renting, to lift barriers that restrict housing and neighborhood choice, to promote diverse and inclusive communities, to ensure sufficient physically accessible housing, and to secure equal access to housing opportunity for all,” the executive order stated.
CBC Mortgage Agency Director of Government Affairs Tai Christensen praised the administration’s move. “Starting at the inception of this country and continuing late into the 20th century, people of color have been denied the same housing opportunities as their white counterparts,” she said. “Even today, the lingering effects of discrimination continue to hinder growth in housing wealth among minorities. We enthusiastically support President Biden’s decision to take steps to redress discrimination, and we wish the new HUD secretary well on her mission to expand access to homeownership to more people.”
The Place for Lending Visionaries and Thought Leaders. We take you beyond the latest news and trends to help you grow your lending business.