Minority Home Ownership Falls

I am reading Paul Sperry’s new book (The Great American Bank Robbery) on the housing crisis.

Paul Sperry writes for Investor’s Business Daily:

Blacks and Hispanics have lost much of the housing gains they made during the Clinton and Bush administration campaigns to boost minority homeownership, new census numbers show.

As a result, the “mortgage gap” between minorities and whites is almost as wide as it was two decades ago, when Washington launched a crusade to close it.

The black homeownership rate plunged in 2010 to a 13-year low of 45% from a housing bubble peak of 49%. The share of Latinos owning a home fell to 48% from a high of 50%. While also down, the rate for whites stood at 74%. Analysts expect rates to keep falling in 2011 and beyond.

“We’re definitely heading back down to the bottom, especially when you look at minorities,” said Melissa Kresin, a Census Bureau researcher. With home foreclosures and vacancies up again this year, “it’s not looking great.”

Sadly, affordable-housing policies have backfired on the groups they were designed to help.

In 1995, President Clinton unveiled his National Homeown ership Strategy to push black homeownership above 50%. After he pressured banks and Fannie Mae and Freddie Mac to ease lending rules for low-income minorities, black ownership rates shot up to record levels.

The media at the time attributed the growth to the “first real enforcement of the Community Reinvestment Act,” an anti-discrimination law regulating mortgage lending. “Our homeownership strategy will not cost the taxpayers one extra cent,” Clinton promised during a White House ceremony attended by Acorn officials.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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