HUD Secretary Jackson Tells Realtors Minority Home Buyers Face Challenges

RISMEDIA, May 18, 2007-U.S. Department of Housing and Urban Development Secretary Alphonso Jackson said many first time and minority home buyers face significant challenges when trying to purchase a home, and such difficulties have resulted in many of them assuming risky, adjustable-rate, subprime loans.

Jackson made his remarks during the HOPE Awards Minority Housing Symposium yesterday at the National Association of Realtors(R) 2007 Midyear Legislative Meetings & Trade Expo here.

Secretary Jackson told Realtors that minority homeownership remains 25% behind the national average. He emphasized that affordable homes and loans are still hard to come by and that 40% of African Americans and 23% of Hispanics pay interest rates 3% higher than the market rate.

“Everyone should have access to a safe, affordable mortgage product; and this should not change just because that person is a first-time or minority home buyer,” said Secretary Jackson. “We can only improve minority homeownership through powerful partnerships, innovative thinking and steadfast commitment to fairness, equality and justice. If we can overcome these disparities, then we can change the face of homeownership in
America.”

Secretary Jackson praised the winners and organizers of the 2007 HOPE (Homeownership Participation for Everyone) Awards, a national industry awards program which aims to increase minority homeownership, revitalize communities and expand affordable housing opportunities.

“The HOPE Awards are designed to help close the divide in the American dream,” said Jackson. “These awards emphasize that homeownership is for everyone.”

Following Secretary Jackson’s talk, Ken Harney, syndicated columnist of the Washington Post Writer’s Group, led a panel discussion of the HOPE Awards winners. The winners spoke about their award-winning projects and programs and answered questions from the panelists and audience.

Winner of the 2007 HOPE Brokerage Award, Berenice Gomez of Harvest Home Mortgage in Melville, N.Y., told how she established HHM to address the language obstacles many of her clients faced. HHM helps educate Spanish-and English-speaking home buyers about purchasing a home, dealing with poor credit histories and understanding the complexities of home loans.

Pamela Ranslam Schofield represented the Umatilla Reservation Housing Authority of Pendleton, Ore., which is the 2007 HOPE Education Award winner. Schofield discussed URHA’s programs, which help educate tribal members about saving, budgeting and the buying process through financial literacy and home buying counseling. Schofield also highlighted the organization’s savings programs that help tribal members with down payment and closing cost help.

Michelle Mitchell, from the Colorado Housing Assistance Corp., which was named the 2007 HOPE Finance Award winner, shared how CHAC received a planning grant from HUD more than 10 years ago. CHAC created a coalition of organizations to provide ownership for people with 100% permanent disabilities. Mitchell discussed how the program offers borrowers 3% fixed-rate 30-year loans and $19,500 in down payment assistance, which does not have to be repaid unless the homeowner sells, refinances or rents the property.

The recipient of the 2007 HOPE Project of the Year Award, Monsignor William Linder of New Community Corp. in Newark, N.J., told the audience how NCC was established in 1968 in response to the need for affordable and livable housing in Newark’s Central Ward. Today, NCC is the state’s largest nonprofit housing developer, and through a partnership with the New Jersey Department of Youth and Family Services, it provides foster parents with three-bedroom town homes for just $25,000.

The 2007 HOPE Award for Public Policy winner, Father Vien The Nguyen of the Mary Queen of Vietnam Church in New Orleans, shared the story of how he personally helped New Orleans East residents return to their homes and rebuild their lives following Hurricane Katrina. Throughout the rebuilding process Fr. Vien advocated the resumption of basic services that allowed a majority of residents to return to their homes. In 2006, he also led an effort to shut down a hazardous waste landfill.

The winner of the 2007 HOPE Leadership Award, Chickie Grayson, Enterprise Homes Inc., of Baltimore, told how she has developed high-quality, affordable homes and rental properties for families from all walks of life for more than 20 years.

The HOPE Awards is a partnership of the Asian Real Estate Association of America; the Chinese American Real Estate Professionals Association; the Chinese Real Estate Association of America; the National Association of Hispanic Real Estate Professionals; the National Association of Real Estate Brokers Inc.; and the National Association of Realtors(R).

For more information, visit http://www.REALTOR.org.

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