Shekhar welcomed the move, but said that lasting solutions to the systemic problem can only be achieved at the state and federal levels.
He said, “That’s what gets confusing if you’re trying to bring three million more homeowners into your home or get 50-60% of the home ownership. You cannot achieve aggressive goals by saying, “Okay, let’s train lenders or brokers with better advice.”
Industry data shows that not only has the share of black households declined over the past 50 years, but that the gap between white and black American households is wider than it was before the Fair Housing Act of 1968, which was introduced to create equal housing opportunities for people. … minorities.
According to the Institute of Urban Studies for the first quarter of 2021, the share of home ownership among black households is 45.1% compared to 73.8% among white non-Hispanic households, and data from real estate broker Redfin shows that almost 16% of black Americans who apply for mortgages last year were turned down, up from 7% of white Americans. High debt and low credit ratings were cited as some of the reasons for the discrepancy.
One solution proposed by Shekhar would be to introduce a program similar to the Veterans Administration loans, which are guaranteed by the US government. “I do not expect private lenders to suffer from this blow to their balance sheet, the federal government should do it if (black households) default,” he said.