April 23, 2018

Brokers Team for Black Home Ownership Campaign

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Brokers Team for Black Home Ownership Campaign

A group of black real estate brokers have joined forces with a big goal: To increase the number of African Americans who own a home nationwide by 2 million within five years.

To help achieve this, the National Association of Real Estate Brokers is offering educational campaigns that are aimed at preparing renters to become home owners and help reduce fears over the home-buying process. The group is also addressing some of the main barriers to African Americans who want to become home owners, particularly the financial challenges.

Read more: Minority Home Ownership Rates Are Rising

In teaming with LendingPatterns software of Compliance Technologies, the National Association of Real Estate Brokers found that in Memphis alone, white applicants for home loans succeeded in getting a mortgage at a rate of 1.72 times over black applicants. Black applicants are denied at a loan rate 2.56 times greater than whites, their analysis found.  

In 2014, lenders in Memphis received 8,646 home-loan applications from whites, and about 65.5 percent (or 5,215) of those were successfully completed. On the other hand, of the 7,000 loan applications received by black applicants in Memphis, about 38 percent (or 2,526) were approved by lenders.

Across the country, black Americans have the lowest home ownership rate of any ethnic group at 41.9 percent, according to U.S. Census data. The number has been dropping ever since the financial crisis too. In 2004, black home ownership was at 49.1 percent. For comparison, home ownership rates for non-Hispanic whites is 74 percent.

“We lost quite a bit of equity wealth. We need to rebuild it,’’ says Ron Cooper, a Los Angeles real estate broker and president of the association. “The message is that the pursuit of home ownership of black Americans is still a noble pursuit. The American dream is within our reach; we just got to reach for it.’’

Source: “Black Real Estate Brokers Drive Home-Ownership Campaign,” The Commercial Appeal (March 13, 2016)