EXCERPT......Ten years ago, for example, the typical conforming mortgage required a down payment of 10 to 20 percent, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3 to 5 percent down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide. Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...
In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early. Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bush’s Minority Homeownership Initiative).
After four of the strongest years in housing and mortgage finance history, we’ve already surpassed the top-line goals of this commitment. But our work is far from complete.
So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle America’s toughest housing challenges. Our new commitment has three main goals.
First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.
Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.
Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.
It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years. And we have increased our financing of mortgages to African Americans by over 400 percent and to Hispanic Americans by 470 percent in the past ten years, compared with a 205 percent increase in overall financing.
Our Expanded American Dream Commitment will help us do even more.
Backgroud info on all of the various heads of FM who have resigned(including info on Kellerman). He was to be replaced according to this article:
http://www.iddmagazine.com/news/185949-1.html
I guess the idea it to basically “give” blacks and hispanics houses and send the bill to others in the form of taxes to cover the defaults.
Nothing surprises me anymore. I worked for a place once that built add on enclosures for homes, like garden rooms.
The application had a box for what race you were. Blacks and Hispanics got a lower interest rate. I was asked by the boss if I thought that was wrong. I said “yes, and then quit.
Thanks for this important post which could be emailed to everyone vaguely interested in the current situation. Reading it with hindsight makes my skin crawl. Why did it not cause the same reaction to everyone reading it in 2004?
Because ‘everyone’ thought that ‘everyone else’ was acting responsibly, so these give-away mortgages must be sound.