Issues and Policy Goals

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.

Wealth Gap

Most Americans build long term wealth through home ownership. Disadvantaged communities have had their wealth building opportunities limited by biased lending and appraisal systems. 

GSE Reform

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.