In March, the nation’s three largest organizations representing multicultural real estate professionals called for policy makers to do more for minority homebuyers.
This call to action comes after the Asian Real Estate Association of America (AREAA), National Association of Hispanic Real Estate Professionals (NAHREP), and National Association of Real Estate Brokers (NAREB) met in Washington, D.C., to discuss regulatory and policy changes to preserve access to homeownership for people of color.
“Overwhelmingly, the members of our three organizations agree that the lack of mortgage financing is the single biggest challenge facing minorities who want to buy homes,” said Kenneth Li, AREAA chairman. “The government’s housing recovery efforts have not gone far enough to improve the situation facing minority homeowners.”
At the Multicultural Real Estate & Policy Conference in Washington D.C., held on March 3 and 4, members of the AREAA, NAHREP, and NAREB were surveyed on their views of the home buying market and economic recovery efforts.
According to the survey results, nearly 80 percent of the attendees responded that they believe that the current policy efforts have done little to improve the situation facing minority homebuyers.
Attendees also felt strongly that an active secondary market role is needed by the government.
To stabilize the home buying market for minorities, the organizations issued a joint report entitled “The Five Point Plan: Refocusing the Future of Minority Homeownership.”
Specifically, The Five-Point Plan calls for:
— A balanced regulatory approach that will support and encourage sustainable homeownership for qualified and responsible consumers seeking to purchase a home;
— Increased diversity in the financial services arena and adequate oversight of minority business utilization and senior management hires;
— Maintaining strong government support of the secondary market system, which includes the broad network of primary lenders, government-supported securitization agency, and FHA and collectively works to broaden credit availability for all communities at all times;
— Strong consumer protection oversight to restore consumer and market confidence in homeownership;
— Mandatory financial education for all first-time homebuyers that prepares them for the responsibilities, risks, and rights associated with homeownership. ♦