1. The Housing Renaisassce 2016
Creating Scalable Solutions for the Underserved Consumers August 5, 2016

2. Creating Scalable Solutions for Meeting the Needs of Underserved Consumers, cont
Lack of Diversity in the Industry leads to a lack of diversity in loans
Dual mortgage market – one White and one for everyone else
Evidenced by differences in Homeownership rates by race 10

3. Government policies have perpetuated access to credit issues by race over the years
From HOLC FHA redlining maps after the depression to the recent HARP refi and principle reduction programs with a prerequisite that the loans be owned by Fannie Mae and Freddie Mac

4. Fannie and Freddie Problem is:
Fannie and Freddie do a poor job of serving the home loan needs of Blacks and Latinos
They serve the home loan needs of middle and upper income Whites, in middle and upper income White neighborhoods
Moreover, the same for the private mortgage insurance industry as they only insure conventional loans

5. Yes, there are income and wealth disparities, but the credit box squeezes some credit ready borrowers out.
For example, LLPA and repurchase rules discourage risk adverse lenders from lending to underserved consumers.
Blacks and latinos are historically and disproportionally served by subprime, FHA and shadow market lenders; where credit cost more and loans are more likely to default and foreclose, but no relief from HARP refi or principle reduction programs.

6. Fannie Mae Loans Purchased by Race 2004-2014
Year
White
Black
Hispanic
Asian
Native Amer.
Hawaiian
Total
2004
1,762,382
114,283
182,766
119,619
7,110
9,672
2,195,832
2005
1,643,571
113,185
180,279
99,387
5,897
8,790
2,051,109
2006
1,245,418
106,751
156,143
73,823
4,733
6,262
1,593,130
2007
1,363,820
133,248
183,197
81,511
4,871
6,993
1,773,640
2008
1,072,383
59,847
100,533
87,837
3,223
4,795
1,328,618
2009
2,001,976
93,258
139,546
151,245
5,918
7,878
2,399,821
2010
1,333,277
35,362
69,034
147,087
3,122
4,314
1,592,196
2011
1,355,708
43,270
82,321
132,344
3,594
4,342
1,621,579
2012
2,297,935
74,930
143,931
246,226
5,647
7,644
2,776,313
2013
1,888,777
81,391
155,809
190,298
5,738
7,413
2,329,426
2014
919,014
44,490
96,972
87,375
3,231
3,897
1,154,979
16,884,261
900,015
1,490,531
1,416,752
53,084
72,000
20,816,643
Source: HMDA Data

7. Source: HMDA Data

8. Freddie Mac Loans Purchased by Race 2004-2014
Year
White
Black
Hispanic
Asian
Native Amer.
Hawaiian
Total
2004
1,132,984
49,161
80,730
61,907
3,721
4,335
1,332,838
2005
1,061,116
50,407
87,614
56,135
3,360
4,432
1,263,064
2006
867,746
48,731
78,925
50,148
2,960
3,646
1,052,156
2007
955,410
69,603
106,371
52,225
3,229
4,280
1,191,118
2008
701,479
35,417
62,097
48,720
2,107
2,764
852,584
2009
1,303,000
28,851
54,358
95,941
2,830
3,443
1,488,423
2010
975,020
21,852
39,553
83,748
2,045
2,742
1,124,960
2011
763,920
20,465
37,045
76,526
1,645
2,182
901,783
2012
1,146,822
35,531
67,365
106,819
2,445
3,472
1,362,454
2013
1,055,630
41,131
74,675
93,619
2,714
3,656
1,271,425
2014
602,035
26,561
54,802
58,677
1,765
2,397
746,237
10,565,162
427,710
743,535
784,465
28,821
37,349
12,587,042
Source: HMDA Data

9. Source: HMDA Data

10. FHA Loans by Race 2004-2014 Year White Black Hispanic Asian Hawaiian
Native Amer.
Total
2004
310,819
75,597
72,735
6,178
1,896
2,339
469,564
2005
247,915
56,789
50,924
4,498
1,301
1,819
363,246
2006
225,315
48,546
40,115
3,685
1,212
1,759
320,632
2007
265,254
65,000
45,864
3,996
1,368
2,201
383,683
2008
776,800
139,525
134,596
19,102
4,211
4,361
1,078,595
2009
1,212,174
161,800
198,971
41,727
6,448
6,382
1,627,502
2010
935,730
120,351
165,180
39,059
5,339
5,139
1,270,798
2011
675,759
87,201
136,213
30,752
3,841
4,570
938,336
2012
831,351
103,974
163,365
38,124
4,582
5,919
1,147,315
2013
683,231
102,014
154,284
30,232
3,872
5,369
979,002
2014
451,505
82,583
129,803
21,172
2,739
4,921
692,723
6,615,853
1,043,380
1,292,050
238,525
36,809
44,779
9,271,396

12. Credit: United Way of the Columbia-Willamette