The Change Company Sponsors New Brookings Report on Solutions to Racial Disparities in Homeownership | Business
IRVINE, Calif .– (BUSINESS WIRE) – Sep 21, 2021–
The Change Company, the United States’ community development finance institution (CDFI), today announced the release of “Homeownership, Racial Segregation and Political Solutions to Racial Equity in wealth, ”a new Brookings Institution report sponsored by The Change Company. The report provides an empirical analysis of racial segregation in several cities in the United States and explores the role that segregation and subsequent disparities in homeownership, home valuation, and access to banking services play. in the growing racial wealth gap.
“The Change Company is proud to partner with a renowned organization like the Brookings Institution to better define and understand housing injustice,” said Steven Sugarman, Founder and CEO of The Change Company. “It is undeniable that a racial wealth gap exists in this country, but to fully address the problem we must recognize the depth of its roots. The findings from this report can help us in our work to level the playing field for Black, Latino and underserved communities by helping to bring social and racial equity to banking and lending services across the country. “
Report authors Andre Perry and Dr Rashawn Ray identify a number of factors that put black families at a disadvantage when it comes to building wealth and argue that political solutions to problems such as access to loans mortgage and equity loans, discrimination in credit ratings and ratings, and increased access to basic banking services are needed to significantly reduce the racial wealth gap.
The report reveals that black residents of the cities studied face several drawbacks when trying to become homeowners. In cases where black families own their homes, there are major disparities in home ratings when comparing predominantly black neighborhoods to black minority neighborhoods, which impacts resale values, resale opportunities. refinancing and other strategies for building wealth through home ownership. Access to basic banking services is another major factor in the existing wealth gap, with 46% of blacks and 32% of Hispanics considered unbanked or underbanked, limiting options for saving, investing. , loans and other financial services that provide opportunities for wealth creation in these populations.
“This report confirms what we already knew – that equal access to homeownership has not yet been achieved in this country. The Change Company exists in part to solve this problem, ”said Rev. Everett Bell Jr., chairman of the Community Council of The Change Company. “Invest in research and identification of policy solutions that improve access for Black Americans and other under-represented groups to fair mortgages, appraisals, underwriting practices, and access to essential banking services is of the utmost importance to The Change Company. As CDFI, our main goal is to uplift communities that mainstream financial services overlook. To do this at scale and establish a roadmap for change, we need to better understand the economic, social and historical inequalities that have brought us to where we are today and craft solutions that will illuminate the future of generations. future.
The Change Company is a CDFI dedicated to helping resolve the racial inequalities that plague financial, banking, and credit services across the United States. In 2020, The Change Company made 20,000 home loans, 70% of which went to black, Latino and other underbanked borrowers, providing equitable and essential services to major borrowers that might otherwise be overlooked by borrowers. traditional banks and mortgage providers.
About The Change Company
The Change Company empowers homeowners, small businesses, and consumers to pursue their American dreams by bringing social and racial equity to banks and loans. The Change Company team has created businesses that have loaned more than $ 50 billion to more than 250,000 borrowers and provided financial services to more than two million Americans. For more information, visit us at http://www.ChangeLLC.com and http://www.ChangeFi.com.
About the Brookings Institution
The Brookings Institution is a nonprofit organization dedicated to independent research and policy solutions. Its mission is to conduct high-quality independent research and, based on this research, to provide innovative and practical recommendations to policy makers and the public. The conclusions and recommendations of any Brookings publication are solely those of its authors and do not reflect the views of the Institution, its management or its other researchers. Support for this publication has been generously provided by The Change Company, LLC. Brookings recognizes that the value it provides lies in its absolute commitment to quality, independence and impact. The activities supported by its donors reflect this commitment.
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CONTACT: media inquiries
Blake Brooks (The Change Company), [email protected]
Kelly Parsons (Brookings Institution), [email protected]
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: CONSTRUCTION AND PROPERTY FINANCING BANKING PUBLIC POLICY / GOVERNMENT PROFESSIONAL SERVICES PUBLIC POLICY OTHER CONSTRUCTION AND PROPERTY OTHER POLICY ISSUES RESIDENTIAL AND REAL ESTATE BUILDING
SOURCE: The Society of Change
Copyright Business Wire 2021.
PUB: 09/21/2021 9:00 a.m. / DISC: 09/21/2021 9:02 a.m.
Copyright Business Wire 2021.