FSIC has conducted years of research directly in the communities it serves. The solutions derived from this research are being implemented directly in these communities and advocacy efforts for reasonable legislative solutions are being conducted on Capitol Hill.
Eviction and Foreclosure Crisis
Congress should not leave the housing stability of Americans to the whims of various state governments. Reimagining the current block grant program procedures. FSIC believes Congress should streamline Rental and Mortgage assistance programs. According to a Federal Reserve Bank report, 11 percent of homes-owned by Black Americans are in danger of imminent foreclosure, which is more than double the five percent for white Americans.
Housing Affordability and Prices
Part of the solution to this part of the housing crisis is to remove racial biases during the mortgage lending process. Since traditional financial institutions have failed to serve disadvantaged communities, FSIC believes non-bank leaders can address the homeownership gap. Also, policymakers should ensure they do not follow the same discriminatory lending practices used by most banks.
Reduce Inequities Through Technology
The mortgage industry has a long history of systemic discriminatory practices. Advancements in technology, like the increased use of AI to assess creditworthiness, can help lenders reduce racial disparities and better serve their customers.
Most Americans build long term wealth through home ownership. Disadvantaged communities have had their wealth building opportunities limited by biased lending and appraisal systems.
Government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac, should incorporate a more holistic system for analyzing consumer credit. This includes considering payment history for rent, utility, and telecom bills so that underserved consumers can build credit before seeking a mortgage.
Real Estate Appraisal Consistency
Rules should be written to provide oversight and consistency in the appraisal process so that minority homeowners do not have their wealth diminished by a racially biased home valuation process. Even with a loan, Black homeowners need fair appraisers for their properties and that is not happening and that is what allows speculators to secure their homes below value and then start the gentrification process which removes Black homeowners, because the properties become too expensive for them to purchase.