For Immediate Release – November 6, 2009
WCVI Study Finds Disproportionate Foreclosures in Latino, Black Communities
Latino Meeting in DC Congratulates Congress and White House for Passing Extension of Current Federal Tax Credit as First Step
Contact: Antonio Gonzalez, 323-222-2217, Albert Jacquez, 703-447-7113
Download the Oct 2009 Paper
Washington, DC (Nov 6) – A new study from the William C. Velasquez Institute (WCVI) found that Latino and Black communities have been especially hurt by the ongoing mortgage foreclosure wave that began in 2005.
Released at a Capitol Hill Briefing earlier today, entitled “The Continuing Home Foreclosure Tsunami: Disproportionate Impacts on Black and Latino Communities,” examines in greater detail the economic impact of the foreclosure crisis has had on communities of color. The report also calls for specific actions that could curb these negative economic impacts while still keeping people within their homes.
“The study finds that Banks were two to nine more times likely to offer high cost mortgages to Blacks and Latinos than Whites,” said WCVI President Antonio Gonzalez. “These predatory banking practices have directly led to the loss of homes, wealth, and prosperity in disproportionately more Latino and Black neighborhoods and could set back those communities for generations.”
Authored by Dr. Raul Hinojosa of UCLA, this study follows up on his co-authored WCVI June 2009 white paper which first surfaced the implications of the home ownership crisis for the American middle class, especially Blacks and Latinos.
“Where the first paper examined the future devastation upon America’s middle class, this follow-up study looks at the present situation,” said Hinojosa. “Today, we establish that the crisis is most prevalent in the West and Southwest regions of the country, in areas that have already have high rates of unemployment for Latinos and Blacks, and has led
directly to the loss of jobs in the homebuilding and construction industries, which further aggravates the risk of mortgage default among minority homeowners.”
As with the June 2009 release, this white paper also proposes practical, responsible policy solutions to the crisis. WCVI calls for the expansion of eligibility requirements for the Making Home Affordable program, reforming bankruptcy laws to enable restructuring of mortgage terms to discourage default or flight, and the extension and expansion of the current Federal Tax Credit for first time homebuyers.
One good note is that late last night the Federal Tax Credit was extended into 2010 by Congress.
To view the complete Oct 2009 white paper, click here.
To view the complete June 2009 white paper, click here.
WCVI is a national nonpartisan, nonprofit policy and research organization. Founded in 1985, WCVI is focused on issues relevant to America's racial and ethnic minority groups. WCVI has offices in San Antonio, Texas and Los Angeles, CA.