Pre-Conference Workshop with Community LeadersChristy Rogers

The Kirwan Institute for the Study of Race and EthnicitySeptember 23, 2010

Chicago IL

Reducing the Racial Wealth Gap in the Wake of Foreclosures: What is the Role of Affordable

Homeownership Programs?

Home equity and the wealth gap (pre-foreclosure crisis)

For every $1 in assets held by African Americans, Whites hold $9 This disparity is primarily due to differences in home equity

Source: “Net Worth and Asset Ownership 1998-2000”. Household Economic Studies. U.S. Census Bureau (2003)

Source: Barry Zigas, CFA Comments “Public Input on Reform of the Housing Finance System” July 20, 2010.

Adapted from “Changes in U.S. Family Finances from 2004 to 2007: Evidence from the Survey of Consumer Finances.” Federal Reserve Board, Survey of Consumer Finances, February 2009. Page A37.

EXPLOITING UNDERSERVED MARKETS(Reverse Redlining)

Did you know…? CRL estimates that from 1998 – 2006, only 9% of all

subprime loans went to first time homebuyers Majority were refinance loans Refinance loans disproportionately marketed to African

American neighborhoods

Photo and story credit:Baltimore Finds Subprime Crisis Snags Women--New York Times 1/15/08

Foreclosure rates by race

Wealth loss in communities of color Property depreciation in communities of color related to

foreclosures between 2009 and 2012: African American neighborhoods: $194 Billion Latino neighborhoods: $177 Billion …and foreclosures continue…