Homeownership is the primary way American families build wealth and pass it on to the next generation. While the United States is known worldwide as the land of great opportunity, opportunities for homeownership have been deeply unequal in our country. Because of systemic discrimination in this nation's housing and credit markets, including by the federal government itself, homeownership rates are much lower for African Americans and other people of color than for their white counterparts. This was true in the 1960s before the Fair Housing Act became law, and it is even truer today.
The Equal Credit Opportunity Act (ECOA) recognized Special Purpose Credit Programs (SPCP) as one mechanism that financial institutions can use to open the door to homeownership for underserved populations who have historically been denied that opportunity. SPCPs provide a tailored way to meet special social needs and benefit economically disadvantaged groups, including groups that share a common characteristic such as race, national origin, or gender. SPCPs can play a critical role in promoting equity and inclusion, building wealth, and removing systemic barriers that have contributed to financial inequities, housing instability, and residential segregation. SPCPs are also consistent with and provide a targeted and effective way to further the purposes of other civil rights laws, including the Fair Housing Act's twin goals of overcoming discrimination and segregation.
In this forum, panelists will provide information about the need for SPCPs; describe how an SPCP works to expand access to credit, and advance equity; outline HUD and Consumer Financial Protections Bureau (CFPB) guidance on SPCPs; and describe the industry perspective on opportunities and challenges to implementing SPCPs.
If you have any questions, please contact NFHTA@cloudburstgroup.com.
Presentation slides and other resources: https://www.hudexchange.info/trainings/courses/nfhta-forum-bridging-the-racial-homeownership-gap-special-purpose-credit-programs/
Register here: https://cloudburstgroup.zoom.us/webinar/register/WN_v4aQDxA8RX6QB-BMqwxRsA