Tag Archives: homeownership

Texas Southern University Host NAREB’s Black Homeownership Summit

“We need to intentionally invest in health, in home ownership, in entrepreneurship, in access to democracy, in economic empowerment. If we don’t do these things, we shouldn’t be surprised that racial inequality persists because inequalities compound.” – Pete Buttigieg

On the campus of Texas Southern University on November 4th and 5th, the National Association of Real Estate Brokers, an organization representing the interest of African American real estate professionals, hosted a homeownership summit with focuses on not only homeownership, but also student debt, access to credit, and investing. The importance of such an event being held on an HBCU campus can not be understated.

Intertwining African American institutions with each other has long been a struggle for the community’s development with African American institutions often operating on islands instead of a connected ecosystem. Events like NAREB’s Black Homeownership Summit at Texas Southern University helps highlight the power, potential, and scalability of what happens when African American (and Diaspora) institutions work together. What better place to address Black homeownership after all than on the campus of an HBCU? Soon to be African American graduates and professionals will be at the vanguard of trying to close the acute homeownership crisis that African America continues to face (graph below).

One of the keynote speakers at the NAREB Black Homeownership Summit event was Teresa Bryce Bazemore, CEO and President of the Federal Home Loan Bank of San Francisco, speaking exclusively to HBCU Money about the event said, “We need all the parties in the housing finance industry and other stakeholders to collectively work to eliminate the barriers to homeownership. In this new environment, all consumers including Black and Brown people should be able to participate equally in the dream of homeownership. We need initiatives that can help potential buyers with improving their credit, saving for down payments and understanding the entire home buying process from A to Z. We also need to make sure that the lending rules are equitable.”

HBCU Money’s Suggested Five Initiatives For HBCUs Can/Should Be But Not Limited Too:

  • Making financial literacy a mandatory part of matriculation for HBCU students. This can be done through the financial aid office, workshops, or a class.
  • Providing HBCU students work study jobs that go into the community at African American K-12 schools and teaching financial literacy.
  • Partnering with African American owned banks and credit unions. Due to their deposit bases, many African American owned banks and credit unions simply can not participate in the primary mortgage market and there are few to none African American owned non-bank mortgage lenders. This leaves the African American community in an extremely vulnerable position to predatory lending as has been demonstrated and shown time and time again. HBCUs are a key to growing assets within African American financial institutions through students, alumni, and institutionally.
  • Offering more scholarships for ALL students. Scholarships are purposed to reduce student loan debt, but they are often resigned to high achieving students despite the majority of students being in the middle. This becomes highly problematic for African Americans who usually do not have the familial wealth to assist in paying down or off their student loan debt. HBCUs while cheaper than our PWI counterparts on the whole could be doing even more to reduce the student loan debt burden for African American students by ensuring that any student who is academically eligible has an opportunity to reduce their student loan debt burden. This provides an opportunity upon graduation that more of their initial paycheck is going towards wealth building and potential homeownership rather than debt burden.
  • Encouraging the use of startups like HBCU Real Estate, who has part of their mission statement to use a portion of their profits to provide down payment assistance for HBCU alumni who seek to purchase primary or investment properties.

Homeownership and real estate ownership have long been a cornerstone to establishing generational wealth in the United States. Despite this, the African American homeownership has never crossed over the 50 percent threshold and according to MarketWatch and has always maintained a 20-30 percentage point gap between African and European Americans. African America’s civilian noninsittuional population as of October 2021 was 33.7 million and its civilian labor force is 20.6 million and the African American labor force 20 and over is 19.9 million. Assuming that 44 percent of the 19.9 million are homeowners (8.7 million), it would take approximately 1.5 million more African Americans to become homeowners to get African America above 51 percent. Based on the most recent data provided by Zillow, the typical value of U.S. homes is $308,220 as of September 2021. Between 1999 and 2021, the median price has almost tripled from $111,000 to $308,220. This means in order for those 1.5 million to acquire homes they would need down payments of approximately $16.2 billion using FHA’s 3.5 percent down financing or $10,800 per potential African American homebuyer. While it does not on the surface seem like a lot to many, that number represents almost 45 percent of the African American median net worth, but a mere 6 percent of European American median net worth.

Just for perspective on that $16.2 billion, there are no African Americans with a net worth more than that, but there are 45 Americans whose single net worth exceeds $16.2 billion. The road to achieving more African American homeownership will be no small task, but events like NAREB/Texas Southern will go a long way in us doing the hard work together, lifting the heavy load together, and ultimately achieving our goal together.

The Greatest Financial Literacy Video Ever (According To Our Editor)

“A wise person should have money in their head, but not in their heart.” – Jonathan Swift

By William A. Foster, IV

Anyone who knows me and has talked to me about money has been sent this video. As a financier who has been asked for personal finance help by family and friends along with once upon a time being a former adjunct professor whose primary job was to teach a prism of subjects for incoming freshmen at a local community college throughout the course, one of those being financial literacy, finding this video was like stumbling upon treasure.

Dan Griffin, CPA, in one hour could honestly change your financial life if you listen, take notes, and put into action everything he discusses. I have watched more financial literacy videos than I can count and this is hands down the best. It is not smoke and mirrors, nor him trying to sign you up for anything, or any of the quite frankly pompousness that I tend to come across with this new era of financial literacy experts that have cropped up as a niche industry. Are there credible people out there trying to teach financial literacy? Absolutely. Is it getting harder and harder to figure who is genuine and who is a pimp turned pastor turned financial advisor? Definitely. Dan Griffin’s video is the most basic financial “meal” imaginable, meat and potatoes. His voice throughout is never too high or low, but simply steady. Moving from one subject on the financial menu to the next and explaining them in depth while giving you additional information to look up on your own. Quite frankly, I have yet to see anyone come remotely close to this one hour.

If the wealth gap for African Americans is to be closed both individual and institutionally, then it starts with improving our basic financial literacy and that is what this video does. As a bonus, we have also added how you can legally get to a point where you are paying no federal taxes.

The Finance & Tech Week In Review – 5/20/17

Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

The world’s most valuable brands in 2017 / WEF wef.ch/2q311Zm

Co-authorship in economic history and economics: are we any different? / NBER bit.ly/2q450EW

Not sleeping? You might be part of a genetic elite / WEF wef.ch/2r3FVec

These are the industries attracting the most venture capital / WEF wef.ch/2q8R3qJ

Want to buy a home at the start of your career? Get one of these 10 college degrees / Housing Wire ow.ly/Zgxu30bSWo8

Our brains prefer invented visual information to the real thing / New Scientist bit.ly/2rmPE2S

LIGO could detect gravitational waves’ permanent space-time warp / New Scientist bit.ly/2r0dW32

Roomba-like tech heads for the garden / New Atlas newatl.as/2qGCNFZ

Users have little confidence their company can protect their mobile device / CSOonline ow.ly/4r3f30bSW0h

Mercedes-Benz Confirms Electric Citaro Bus Coming Next Year / Clean Technica ow.ly/wuJ130bSWdW

The Finance & Tech Week In Review – 2/25/17

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Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

How can #Kenya achieve a sustainable urban future? Video blog / World Bank wrld.bg/zBAq309gUVc

Large gaps exist between the homeownership rates of white households and minority households / St. Louis Fed bit.ly/2liGksY

More than half of #Uganda’s adults now has access to an account at a formal financial institution. / World Bank ow.ly/59ET309lR5F

You can now take a course at the world’s best universities for free. Here’s how that happened / WEF wef.ch/2ktwNAt

Queens in New York has more languages than anywhere in the world / WEF wef.ch/2lA8jEU

Agricultural robot scrutinizes plants so that we don’t have to / New Atlas newatl.as/2kVnJVw

Inside the U.S.’s Only Ocean Exploration Ship / Scientific American ow.ly/VFEX309lPP3

How #bigdata is changing the nature of policing from reactive to proactive / Networkworld ow.ly/TvcW309lPky

#Fraud rises as cybercriminals flock to online lenders / Networkworld ow.ly/w7eN309lP8s

Scientists discovering new coral communities in the Gulf, but they’re already under threat / Pew Environment ow.ly/BX5m309lOYy

The Finance & Tech Week In Review – 1/14/17

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Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

  • How will we power the planet without wrecking the climate? / Nova PBS to.pbs.org/2jNIxx1
  • Small businesses are prime targets for cyberattacks: SIEM-as-a-service can help / CIO Online ow.ly/13Te307ZH8Z
  • Mini fire extinguishers inside lithium batteries may stop blazes / New Scientist bit.ly/2im4hjc
  • Harvester ants farm by planting seeds to eat once they germinate / New Scientist bit.ly/2im9Y0M
  • Here’s how much Tesla will require EV owners to pay to charge up / CIO Online ow.ly/qsm1307ZGKf