March 16, 2011

The future of our American Dream

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This post is also available in: Spanish

As we emerge from this housing crisis and look to the future, it’s critical that the path going forward works for all Americans. Recently, Secretary Shaun Donovan spoke to a group of racially and ethnically diverse real estate leaders to outline how HUD is working to preserve financing options for minority communities.

Historically, homeownership built wealth for generations of Americans, particularly many generations of minority households.  HUD continues to believe in expanding homeownership to everyone who has the credit, income, and desire to own a home. As we reform our mortgage finance system, we can’t do it at the expense of families in communities of color who are still in search of their shot at the American Dream.

The proposals being considered to wind down Fannie Mae and Freddie Mac seek to restore private capital to the marketplace.  These private sources of mortgage capital fled during the housing crisis and it is essential they return. Yet equally essential is that we preserve opportunities for minority borrowers to purchase their first home.  Whatever path is ultimately adopted, part of HUD’s mission is to ensure that all borrowers, regardless of their race or ethnicity, have a fair shake at securing mortgage financing.

For example, there are suggestions to raise FHA’s minimum down payment requirement to ensure borrowers have more ‘skin in the game,” and to make private capital loans more competitive. Some are concerned about the potential that changes like this one could create a dual credit market in this country.  But as we have this discussion, we must not lose sight of FHA’s core mission – to provide access to homeownership for first-time homebuyers and underserved markets.

HUD has worked with multicultural real estate associations, civil rights groups and other stakeholders toward the support of this mission. Efforts include foreclosure prevention workshops, more than 100 vital documents translated into 16 languages, millions of housing counseling sessions, and the strongest consumer protections in our history through the Dodd-Frank Wall Street Reform law. HUD proposes a historic level of funding to enforce fair housing laws this year, including serving 86,000 more of the most vulnerable families than we served in our last budget.  We will soon kick off a series of housing discrimination workshops related to national origin nationwide. And HUD awarded $40.8 million in Fair Housing grants to 108 organizations to combat housing and lending discrimination, including mortgage rescue scams.

We all agree that the mortgage systems in place a few years ago which allowed, and in many instances targeted, first-time homebuyers for the purchase homes they ultimately couldn’t afford caused significant distress on families and communities nationwide.  Going forward, it may indeed be necessary for future borrowers to save for a longer period of time before purchasing a home.  These are the critical issues HUD is currently grappling with.

Yet HUD is committed to preserving the idea that any family with the ability to sustain a mortgage should share in our American dream.  So let’s have a full discussion over the future of our mortgage finance system, and let’s make certain everyone has a chance to be heard.

3 Responses to The future of our American Dream

  1. If the big two…Fannie & Freddie were to be replaced then that would probably cause HUD’s role in homeownership to increase significantly to fill in the gap of whatever the alternative will be.

    Hopefully that will not translate though into any program changes unless of course it’s absolutely necessary for the future stability of HUD programs.

  2. Historically, homeownership built wealth for generations of Americans, particularly many generations of white households. I continue to believe in expanding homeownership to everyone who has the credit, income, and desire to own a home. As we reform our mortgage finance system, we can’t do it at the expense of families in white communities who are still in search of their shot at the American Dream.

  3. ( I am not sure what topic to use )

    To: All Who,That Stand To Lose
    This letter is my idea for helping solve some

    of this mortgage and job downfall-as a pilot

    job program created to assist people whom

    face losing their homes. I am sure that many

    of the letters that are sent out each day to

    home owners in distress are not even

    opened. They may not understand what the

    letters are trying to tell them. If and , When

    the letters are opened and read, there is still

    no communication between the homeowners

    and the lenders. Due possibly to one or

    more of the following reasons.
    Depression, helplessness, confusion , A

    Large feeling of Failure, LOSS of PHONE

    SERVICE , No Electric . , I have experienced

    Some of these conditions first hand.
    Census? Yes, create a network of

    informed, trained people from the state of

    North Carolina; citizens, face to face. Wells

    Fargo Mortgage, PMI insurance

    departments. Borrowers in Need of Jobs. An

    effort by all lenders concerned and invested

    in “Home of People” mortgage.
    The government, lenders and the

    homeowners all stand to lose if something

    besides lots of letter-sending is not done.
    I propose an effort by all whom stand to

    lose, from government to lenders, create a

    “Census” type of network; created to make

    household, face to face contact with

    homeowners; help someone personally!

    Most Homes Were / Are Sold Using This

    type of Attention; As a community, we

    preach helping those in need and at the

    moment are obliged to to do something

    directly and specifically about this issue. Let

    North Carolina lead the way in creating jobs

    from saving everybody money; the

    government, lenders, tax payers.
    Recruiting a pre-knowledgeable staff and

    offing jobs to homeowners in distress could

    be a huge step in helping everyone that is

    going through a financial crisis. Use people

    from behind desks to train each new

    employee With The tools to help educate the

    homeowner face to face, personal help to aid

    in the understanding of what the printed

    letters that are sent to their foreclosed homes

    actually mean.
    Explain the options openly and let

    misunderstanding, letters be a thing of the

    past. Let us Personalnize the way that we

    help people going through These Difficult !!

    Times. if someone is paid to take pictures

    of properties, also send them with

    :information on how they can be helped.

    FACE 2 FACE, a picture may be worth a

    thousand words, but a literal helping hand is

    worth much more. Possibly Saving a

    Family’s Home, The Lenders, The State

    Government, & Federal Government. More

    LOSSES Ie= TAX Payers.
    AS did Census workers were equipped

    with Computers, phones , This Should also

    be the same in this case. Able to access the

    necessary information and options ,for each

    Home-Owner-Borrower . Possibly having a

    data-bank at hand ,of the area’s local Job

    Market to give each Home-Owner. The

    Census workforce program has already been

    used to find each home, person, bedroom,

    bathroom, for statistics sake. This

    employment also would probably, be

    temporary, ? Allowing the people to take

    advantage of the many Education &

    retraining That are currently Offered. There

    is also some incentives for ,The Prospective

    Business person to build new Business &

    employ = People..
    Most all people experiencing, this ,

    depression/ression , Never Would have

    thought to remotely prepare for This Event

    of a HORRIFIC , Economic proportion. That

    has Plagued us for too long. This is the

    reason I am So Much in Favor of using this

    Face 2 Face, = Neighbor helping Neighbor ,

    type of Assistance . Planting some seeds For

    The future . If anyone else think this idea

    will work ,could you PLEASE , help & show

    it to People That Can & Will Make it

    happen. I have read nor have I seen

    Anything like this . It is Quote,, (WIN-

    WIN} Forward Move for the , Economy!!
    Rember: Most Homes Were & Are Sold

    Using This type of { Personal } Attention.
    Wade Brookover, 704-309-6552 ..

    Indian Trail,Nc. 28079.

    Email ;
    { Currently Facing

    foreclosure } 04/2011

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