Black Homeownership Collaborative 2022-23

BLACK HOMEOWNERSHIP COLLABORATIVE ANNUAL REPORT 2022–23

CONTENTS 3 Letter from the Co-Chairs 4 Urban Institute 8 Local Spotlight: HOPE Credit Union 10 Mortgage Bankers Association 12 National Association of REALTORS® 14 National Association of Real Estate Brokers 16 National Fair Housing Alliance 18 National Housing Conference 20 National Urban League 22 Sponsors

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Together, we will continue to challenge and push back the barriers that Black Americans continue to face on the path to homeownership.

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LETTER FROM THE CO-CHAIRS

Bryan Greene

Lydia Pope

Cy Richardson

Vice President of Policy Advocacy National Association of REALTORS ®

President National Association of Real Estate Brokers

Senior Vice President for Programs National Urban League

Since its inception two years ago, the Black Homeownership Collaborative (BHC) has been a driving force in promoting and advancing homeownership opportunities for the Black community.

The collaborative’s commitment to breaking down barriers and addressing the historical inequities in housing continues to work to bring about tangible changes and offer hope to countless individuals and families.

The Second Anniversary Report is an opportunity to acknowledge the accomplishments achieved through the collective efforts of a diverse group of stakeholders. It serves as a platform to honor the pioneers, advocates, and community leaders who have dedicated their time and expertise to make homeownership a reality for many.

We have chosen to celebrate this milestone in Memphis, with its rich cultural heritage and historical legacy. The city’s deep roots in African American history make it a symbol of resilience and determination. By hosting the anniversary celebration in Memphis, we pay homage to the city’s role in shaping the narrative of Black homeownership and affirm our commitment to progress.

The second anniversary of the Black Homeownership Collaborative is not only a celebration of accomplishments but also a call to action. It reminds us of the urgency to further expand opportunities and create a future where homeownership is accessible to all, regardless of their background or circumstances.

We extend our deepest appreciation to all the individuals, and organizations who have dedicated their time and resources to expanding homeownership opportunities for Black Americans. Your contributions have made a lasting impact on the lives of countless individuals and families, empowering them to build a better future.

As we mark this important occasion, let us recommit ourselves to the critically important mission of the Black Homeownership Collaborative to create 3 million net new Black homeowners by the end of 2030. Together, we will continue to strive for a society where homeownership is a vehicle for generational wealth, stability, and empowerment.

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A YEAR IN REVIEW ADDRESSING THE RACIAL HOMEOWNERSHIP GAP

URBAN INSTITUTE In 2019, the 30-point gap between white and Black households’ homeownership rates (72% vs 42%, respectively) was larger than in 1960, when overtly discriminatory practices and policies were allowed in the selling and financing of homes. Urban Institute research projects the gap will grow without concerted action. The Black Homeownership Collaborative was launched in 2020 with a goal of increasing the number of Black homeowning households by 3 million by 2030. This could result in 9.456 million Black homeowners and move the Black homeownership rate above 50% for the first time.

The intervening two years have seen pandemic and economic turbulence, generationally low interest rates followed by an unprecedented spike, ballooning home prices and an acute shortage of affordable homes. From 2019 to 2021 homeownership actually increased by 1.3 percentage points overall and Black homeownership rose even more, by 2 percentage points, representing an estimated 261,855 net new Black homeowning households over this period. This progress was especially driven by young, higher-earning and highly educated borrowers.

How can we protect, maintain, and accelerate these gains? This is an urgent question, as younger, firsttime buyers and homeowners of color are losing ground in the current market because of the sharp increase in interest rates. Additionally, foreclosure moratoriums are ending, and recession prospects threaten the sustainability of Black homeowners.

Let’s look at what has happened since the end of 2021, the last point for which reliable data on the total number of Black homeowning households is available.

› New Black homeowners: Preliminary Home Mortgage Disclosure Act (HMDA) data show 291,999 Black borrowers used mortgages to buy homes in 2022. Applying the typical firsttime homebuyer share estimated by CFPB to be 45% from 2010 to 2018—we can estimate that roughly 131,399 of those loans were to Black first-time homebuyers.1 › Home losses: Foreclosure rates average higher in zip codes with larger Black shares of the population. Pandemic foreclosure moratoriums kept foreclosure rates low. As these wind down, foreclosures are returning to pre-pandemic levels, and disparities reemerging. We estimate that 51,000 Black households had foreclosures started in 2022.2 › Using these rough calculations, our preliminary estimate is that roughly 80,399 net new Black homeowners were added in 2022, bringing the total net new Black homeowners since 2019 to roughly 340,254. This estimate does not include homes acquired without mortgages, nor does it count exits from homeownership due to sale and moving to renting or to death of homeowner. It focuses on outcomes which can be influenced by changes to policies and practices.

Data to guide strategies to close the racial homeownership gap can be found in this dashboard for the Black Homeownership Collaborative’s efforts. For in depth discussion of trends and forces shaping Black homeownership, see 2022 State of Housing in Black America

by Jim Carr and Michela Zonta, published by the National Association of Real Estate Brokers.

FTHB is defined as those without a prior mortgage in the last 7 years.

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Urban Institute calculations using Black Knight data, foreclosure start rate derived by weighting foreclosure starts by zip code racial composition.

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Recent Research by the Urban Institute on What Can Close the Gap › Black households face systemic barriers to homeownership, including limited wealth, inequitable access to credit, and housing affordability constraints. Black mortgage applicants are twice as likely to be declined for a mortgage as white borrowers.

Analyzing mortgage denial rate disparities can highlight opportunities for greater fairness in mortgage underwriting. Returning to more reasonable underwriting guidelines could enable roughly 1 million more households, many of those Black households, to become homeowners a year. › As part of a partnership with the FHLB of San Francisco to spur mortgage innovation and advance Black homeownership, researchers are exploring the potential of using alternatives to credit scores and the relationship between education debt and homeownership. › CRA lending patterns show that income is not a proxy for race, suggesting the need for better targeting. Down payment assistance targeted to first-generation homeowners could help as many as 5 million households, 34% of them Black, become homeowners.

Special Purpose Credit Programs can encourage lending to people and places that have long faced disparities. › Fannie Mae’s and Freddie Mac’s new Equitable Housing Finance Plans offer hope that these mortgage giants will serve more Black borrowers, but data is required to hold them accountable. › Improvements in availability of smaller mortgages, FHA purchase-rehab loans and rate buydowns would make it easier and more affordable for many Black renters to become owners. Streamlining refinances can help more Black homeowners benefit when rates fall. › Automated valuation models (AVMs) may reduce appraisal bias, but measures are needed to ensure disparities are not wired into the models. › The FHFA recently announced that Fannie Mae and Freddie Mac will offer payment deferrals for borrowers facing qualified hardships. Our research shows how normalizing successful COVID-19 forbearance policies could disproportionately benefit Black homeowners. Further enhancements to FHA’s foreclosure prevention options could help sustain more Black borrowers, who disproportionately hold FHA loans.

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Snapshot: City of Memphis › Black households comprise 60% of the City of Memphis’s population yet hold just 30% of the primary residence housing wealth. › The Black-white homeownership rate gap is 31.3 percentage points in the MSA and 25.9 percentage points in the City of Memphis (as of 2015–2019 ACS data). In the City of Memphis homeownership rate has dropped more than 30 percentage points since the Great Recession; Black households experienced the greatest decline. › In the City of Memphis, Black applicants for purchase mortgages are more than 3 times as likely to be denied as white applicants (16% vs. 4.6%), with debt-toincome being the #1 reason for denial. › Freddie Mac estimates there are 38,408 mortgage-ready Black millennials (age 45 and younger) in the Memphis MSA.

HOMEOWNERSHIP RATES, BY RACE OR ETHNICITY Black

Asian

Hispanic

City of Memphis

White

Memphis MSA

83.7% 73.0% 69.9% 67.9%

64.5% 52.7% 38.6% 37.6%

2005–09

2010–14

2015–19

76.4%

75.2%

58.6%

59.7%

51.3%

45.2% 43.9%

42.7%

2005–09

2010–14

2015–19

Source: American Community Survey.

Notes: MSA = metropolitan statistical area. Values calculated using allocation factors provided by the Missouri Census Data Center.

See: https://keys.nationalfairhousing.org/research/ for more

› .

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LOCAL SPOTLIGHT: HOPE CREDIT UNION HOPE is a Black- and women owned Community Development Financial Institution (CDFI) credit union, loan fund, and policy and advocacy organization. Since 1994, HOPE has worked to increase access to financial services, expand community infrastructure, and advocate for vulnerable populations in economically distressed areas throughout the Deep South.

HOPE currently serves five states — Alabama, Arkansas, Louisiana, Mississippi and Tennessee — a region that is home to over a third of the nation’s persistent poverty counties. Of HOPE’s 38,000 member owners, 69% have household incomes below $45,000, eight out of 10 members are people of color, and nearly half did not have a bank account upon joining the institution.

mortgages are manually underwritten, and nontraditional sources of credit are considered in the underwriting process. The product also discounts deferred student debt, does not require mortgage insurance, and considers credit scores as low as 580. The AHP allows for a loan-to-value (LTV) of 100% - eliminating the need for a down payment. HOPE often pairs the AHP product with various down payment assistance programs to reduce barriers to homeownership. Down payment assistance programs are funded through philanthropy, bank partners and various units of government.

Figure 1a

EXPANDING BLACK HOMEOWNERSHIP Over the last 22 years, HOPE has closed over 3,000 mortgages to homebuyers across its fivestate region. Importantly, HOPE’s mortgage program has achieved a high level of impact. In 2022, 9 out of 10 mortgage borrowers were people of color; 2 out of 3 were women and 8 out of 10 were first time-homebuyers (Figure 1a). Additionally, HOPE extended homeownership opportunities to mortgage borrowers with credit scores that were well below national levels (Figure 1b) with a charge off rate of less than 0.20%.

To achieve this level of impact, HOPE offers an in-house mortgage product, the Affordable Housing Program (AHP), designed to address systemic obstacles for potential homebuyers lacking a down payment. Through the AHP,

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Figure 1b

HOMEOWNERSHIP AND MORTGAGE GAPS IN THE DEEP SOUTH HOPE’s mortgage program responds to systemic gaps in the Deep South where 1 out of 2 Black households own a home in contrast to 3 out of 4 white households. Across the region, homeownership gaps by race persist in every state (Table 1).

A major factor contributing to the homeownership gap includes inequitable access to mortgage financing. Even controlling for income, Black borrowers are more likely to be denied mortgages.

In the Deep South, Black borrowers experience higher mortgage denial rates than white borrowers at every income level (Figure 2).

Table 1: Homeownership Rates in the Deep South by Race STATE

HOMEOWNERSHIP RATE Black

White

AL

53%

77%

AR

45%

73%

LA

49%

78%

MS

54%

80%

TN

44%

74%

Deep South

49%

76%

After falling onto hard times financially, Annie Wallace relocated to Memphis to stay with a friend. She soon learned about HOPE and began working closely with the team to map out a path to get her credit back on track. “From day one, HOPE was awesome,” Wallace says. “They weren’t judgmental. They asked me what my goals were and I told them I wanted my own home.” Wallace followed the plan and eventually qualified for a mortgage through HOPE’s Affordable Housing Program, an in-house program that did not require a down payment. Once the mortgage closed, she purchased a modest two-bedroom house that she called her own. “Throughout this whole ordeal, HOPE reminded me not to give up on myself. I was growing and it was going to be better ahead.”

Source: FDIC (2021). “National Survey of Unbanked and Underbanked Households”

Figure 2 Mortgage Denial Rates in the Deep South by Race and Income

Source: Hope Policy Institute analysis of 2021 Home Mortgage Disclosure Act data

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MORTGAGE BANKERS ASSOCIATION Mortgage Bankers Associations (MBA) works to increase Black homeownership through thought leadership, market-based solutions, advocacy efforts, and strategic partnerships. As momentum grows for efforts such as our CONVERGENCE place-based programs, the Building Generational Wealth through Homeownership Initiative, and the Home for All Pledge, MBA will continue to share best practices, information, and resources that will help the mortgage industry expand access to homeownership opportunities.

This work provides a growing template of best practices on how local stakeholders like lenders, real estate professionals, housing counselors, nonprofit developers, and local government, along with national partners in the housing ecosystem can better serve minority borrowers and those in underserved communities. This ongoing, local engagement — and the lessons learned — will help drive strategic initiatives that are scalable and effective. There are currently three CONVERGENCE place-based locations: Memphis, TN; Columbus, OH; and Philadelphia, PA.

CONVERGENCE Memphis launched in March

CONVERGENCE CONVERGENCE is a collective impact initiative to increase Black homeownership and help close the racial wealth gap. CONVERGENCE leverages and elevates the strength and resources of local community networks and creates new locally driven solutions.

2020 in partnership with the Tennessee Housing Development Agency and was incorporated as a 501(c)3 in late 2021. CONVERGENCE Memphis continued its focus on community engagement through strategic partnerships with local and national organizations to participate in events such as homebuyer fairs and educational opportunities for housing industry professionals. In addition, CONVERGENCE Memphis is working on a program with CoreLogic that uses an evidence-based design tool to enable local land developers to answer critical questions during the pre-development stage, thereby accelerating the process for capitalizing, permitting, and approving new, single-family, homeownership starts.

CONVERGENCE Columbus

launched in July 2021 in partnership with the Ohio Housing Finance Agency and the John Glenn College of Public Affairs at Ohio State University. It is now hosted by the Affordable Housing Alliance of Central Ohio. During the past year, CONVERGENCE Columbus developed

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about the barriers to homeownership for minorities in Philadelphia and explored a wide range of innovative solutions. This information was used to develop a strategic plan that will guide CONVERGENCE Philadelphia’s collaborations and activities for the next several years.

a training class for real estate professionals to increase their knowledge of programs and products for first-time homebuyers. The course will serve as a model that can be replicated in other CONVERGENCE cities. Also, CONVERGENCE Columbus and MBA launched a pilot for a new counseling-focused technology platform that will give housing counselors and homebuyers greater certainty about the buyer’s degree of readiness when applying for a mortgage. The platform will track key milestones along the homebuyer journey, including whether a mortgage application was ultimately approved.

CONVERGENCE Philadelphia launched in

March 2023 with the support of Radian, TD Bank, and Wells Fargo Home Mortgage. During the months leading up to the official launch, more than 50 local organizations provided feedback

BUILDING GENERATIONAL WEALTH THROUGH HOMEOWNERSHIP MBA’s Building Generational Wealth through Homeownership Initiative, which was launched in September 2021, continued to provide industry leadership for reducing the racial homeownership gap; developing and supporting policies that support sustainable homeownership for communities of color; and promoting fair, equitable, and responsible lending for minority borrowers.

Through this initiative, MBA developed a Special Purpose Credit Program Toolkit for lenders with the National Fair Housing Alliance in partnership with the Homeownership Council of America.

HOME FOR ALL The Home for All Pledge represents the mortgage industry’s long-term commitment to a sustained and holistic approach to addressing racial inequities in housing. Launched in 2021, the Home for All Pledge was a top priority for MBA in the past year and is tied directly to MBA’s new Affordable Rental Housing Strategy (Strategy). Growing the ranks of diverse professionals in multifamily housing lending and development is among the key pillars of Strategy, which seeks to address the affordable rental housing crisis through policies, programs, and practices. The efforts outlined in the Strategy will help to create more well-informed and successful renters and, over time, a more stable group of homeowners and community members.

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NATIONAL ASSOCIATION OF REALTORS® The National Association of REALTORS® (NAR) is a proud partner of the Black Homeownership Collaborative’s (BHC) 3by30 Initiative and remains committed to advancing Black homeownership. NAR understands the importance of working intentionally and strategically to address both the racial wealth and homeownership gaps that persists.

NAR’s work over the past year has primarily focused on educational awareness, financial literacy resources, and formal policy to robustly advocate in support of federal policy to advance homeownership, while also highlighting the local and state efforts to advance Black homeownership.

NAR will continue to work to advance Black homeownership and looks forward to working with industry partners and leaders to help make the dream of homeownership a reality for more families.

NAR’s work over the past year has primarily focused on educational awareness, financial literacy resources, and formal policy to robustly advocate in support of federal policy to advance homeownership.

2023 WORK AND INITIATIVES Over the past year, NAR has continued its work on several initiatives to better understand homeownership gaps and disparities and to work to advocate to advance Black homeownership by: › Successfully advancing formal policy enabling NAR to support Special Purpose Credit Programs (SPCPs) and Federal Down Payment Assistance. › Advocating in support of reconsideration for consumers where there are real property valuation concerns. › Advocating in support of diversity within the appraisal profession and support for changing current appraisal qualifications to allow experience from parallel professions. › Encouraging the Appraisal Foundation to require fair housing training for appraisal licensing and continuing education requirements. › Supporting the Appraisal Diversity Initiative and NAR’s Spire Mentorship program to encourage greater diversity within the real estate industry broadly. › Supporting the Government-Sponsored Enterprises (GSEs) Equity Plans. › Supporting the GSEs’ Loan Level Price Adjustment Reductions. › Encouraging the GSEs to adopt new credit score models and alternative data. › Successfully advancing internal policy requiring all NAR leadership receive diversity,

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equity, inclusion, and fair housing training beginning in 2024. › Successfully advancing internal policy implementing a new required fair housing training requirement every three years for all NAR members beginning in 2025.

2023

Snapshot of Race and Home Buying in America National Association of REALTORS® Research Group

› Submitting a comment letter in support of HUD’s Affirmatively Furthering Fair Housing (AFFH) rule. › Signing a joint letter of support with real estate multicultural groups in support of the AFFH rule. › Fully supporting an increased budget for fair housing testing and enforcement at HUD. › Advocating in support of FHA’s reduction in Annual Mortgage Insurance Premiums (MIPs) by 30 basis points.

2023

Home Buyers and Sellers Generational Trends Report National Association of REALTORS® Research Group

› Encouraging states to support Heir’s Property reform and minimum fair housing training requirements for licensure for real estate professionals. › Releasing several research reports, including A Snapshot of Race and Homebuying in America; Home Buyers and Sellers Generational Trends, and Wealth Gains by Income and Racial/Ethnic Group. › Continual promotion of NAR’s Fair Housing Training Programs — Bias Override and Fairhaven and highlighting the efforts of members who are deemed Fair Housing Champions.

April 2023

Wealth Gains by Income And Racial/Ethnic Group National Association of REALTORS® Research Group

MEDIA › NAR Fair Housing Champions › A Realtor’s meaningful calling to focus on affordable housing

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NATIONAL ASSOCIATION OF REAL ESTATE BROKERS The National Association of Real Estate Brokers, (NAREB), is a Real Estate Professional trade organization bringing together the nation’s minority professionals in the real estate industry. The organization was founded in 1947 in response to discriminatory housing practices and continues its commitment to fostering the expansion of inter-generational wealth creation of Black households leading under the principle, of “Equal Housing Opportunity for all.”

THE STATE OF HOUSING IN BLACK AMERICA 2022 REPORT The State of Housing in Black America (SHIBA) report provides a comprehensive analysis of Black homeownership and the historic barriers Blacks face when seeking to purchase a home. The latest report finds that while Blacks are making progress in obtaining homeownership, the racial wealth and homeownership gap persist due to multifaceted barriers discussed throughout the report. NAREB offers six recommendations to address the effects of institutionalized housing discrimination and actions to close the homeownership gap.

Recommendations › Eliminate Loan Level Price Adjustments NAREB advocates for the elimination of risk-based or loan-level pricing (LLPA). LLPA disproportionately penalizes populations that were the principal victims of exploitative

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lending and implements discriminatory practices into the mortgage system. Charging financially weaker households higher costs as a result of the failure of the housing finance system to purge predatory loan products decreases the affordability of the mortgage and increases the risk of default. › Eliminate Penalty Fees to Access Down Payment Assistance NAREB recognizes down payment assistance as a critical form of homebuyer assistance.

Increasing the down payment of borrowers helps improve mortgage accessibility and sustainability as this lowers a borrower’s debtto-income ratio, monthly mortgage interest, and principal payments, and improves loan affordability. › Recalculate the Impact of Student Loan Debt NAREB urges a reevaluation of the underwriting standards for student loan repayments and mortgage loan applications.

Student loan repayments are factored in the debt-to-income (DTI) calculation of mortgage loan applications whether repayments are deferred. This penalizes borrowers for additional debts that are not-yet required payments affecting loan approvals and price basing snapshots of the borrower’s credit score and DTI. If a borrower cannot receive credit for future increases in income, borrowers should not be penalized for debts that are not due for repayment.

› Leverage Special Purpose Credit Programs NAREB recognizes Special Purpose Credit Programs (SPCPs) as an alternative lending structure that may target economically disadvantaged populations on the basis of prohibited characteristics such as race, national origin, or sex without being in violation of equal opportunity or fair lending laws. SPCPs offer the benefit of alternative and productive lending channels to meet the mortgage credit needs of Black households who continue to be underserved by the U.S. housing finance system. › End Discriminatory and Abusive Appraisal Practices NAREB calls for discriminatory practices to end in the home appraisal industry.

Black individuals and families continue to experience pervasive racial bias during the home appraisal process resulting in the devaluation of Black communities. Leveraging the recommendations made in the National Fair Housing Association’s January 2022

report, NAREB supports efforts to ensure civil and consumer rights advocates are included in the rulemaking process of the appraisal industry. Further, reducing the impact of appraisal bias should be ensured through fair housing training requirements and supporting individuals of color to enter the profession. › Fix the Broken and Out-Of-Date Housing Finance System The housing finance system developed in the 1930s was built on discriminatory practices and was ill-equipped to address housing needs across diverse racial economic communities.

Continued practices of institutional racism and lending discrimination exacerbated racial homeownership inequalities and economic strain on marginalized communities. An updated housing finance system would ensure adequate capacity and innovation to create affordable homeownership programs and tackle outdated communities by reinvesting into low-to-moderate-income neighborhoods.

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NATIONAL FAIR HOUSING ALLIANCE National Fair Housing Alliance (NFHA) leads the fair housing movement and works to ensure equitable housing opportunities for all people and communities through its education and outreach, member services, public policy, advocacy, housing and community development, tech equity, enforcement, and consulting and compliance programs.

WHERE YOU LIVE MATTERS The location of one’s home determines access, or lack of access, to critical resources necessary to live a healthy and economically prosperous life.

Nationwide, communities of color generally have less access to key neighborhood amenities than predominantly white communities. The disparities

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reflect the ongoing challenge of ensuring equal opportunity across racial lines when the basic building blocks of those opportunities remain exceptionally unequal. NFHA’s priority is to Advance a Blueprint for Equity, by developing and promoting strategies for not only eliminating bias in our society but increasing equity and creating healthy, vibrant well-resourced neighborhoods where people can thrive.

NFHA continues to work with a range of stakeholders to dismantle existing policies and systems that perpetuate discrimination and housing inequality as well as develop and implement policies that promote equitable housing outcomes. As part of a year-long effort to commemorate the 55th anniversary of the passage of the Fair Housing Act of 1968, NFHA deepened its work on appraisal bias by

co-hosting an event with Brookings Institution with a screening and panel discussion of the documentary, Lowballed: Our America. Last year NFHA led the charge to urge the Senate to confirm fair housing allies to federal positions, advocated for the Federal Housing Finance Agency (FHFA) to make targeted pricing changes to the GSEs pricing framework, encouraged FHFA to expand fair access to credit, and submitted testimony on numerous pieces of federal legislation.

In early 2022, the tireless work of NFHA’s legal team yielded one of the largest settlements in the history of the Fair Housing Act. NFHA and 20 fair housing organizations throughout the country reached a landmark settlement agreement with Fannie Mae. Through its Inclusive Communities Fund Grant Program, NFHA is investing $8.3 million in community relief funds from the settlement through grants to 48 nonprofit organizations in 16 cities to promote homeownership, neighborhood stabilization, access to credit, property rehabilitation, and residential housing development.

The Tech Equity Initiative (TEI), a multifaceted effort designed to eliminate tech bias and create a fair housing and lending marketplace, created a comprehensive framework for auditing systems like credit scoring, insurance scoring, automated underwriting, risk-based pricing, digital advertising, and tenant screening tools.

NARROWING HOMEOWNERSHIP GAPS AND ADVANCING TECH EQUITY NFHA continues to forge ahead under its two newest initiatives, diving deep to overcome racial disparities in housing. The Tech Equity Initiative (TEI), a multi-faceted effort designed to eliminate tech bias and create a fair housing and lending marketplace, created a comprehensive framework for auditing systems like credit scoring, insurance scoring, automated underwriting, risk-based pricing, digital advertising, and tenant screening tools. This framework, called Purpose, Process, and Monitoring (PPM), has received unprecedented attention and is currently in use by the Ohio State government and the Urban Institute. TEI has also led novel research to evaluate popular debiasing tools to test their effectiveness and built a wide-reaching data management and research platform to enhance these efforts.

NFHA’s Keys Unlock Dreams Initiative (KUDI) is a national, multi-city initiative designed to reduce racial homeownership and wealth gaps by ensuring that underserved communities impacted by redlining, disinvestment, and negative impacts of the dual credit market, have access to quality, affordable credit, and fair housing opportunities.

The Special Purpose Credit Program (SPCP) online toolkit, created in partnership with the Mortgage Bankers Association, has been the foundation of dozens of presentations and outreach efforts. There are close to 2,000 site visitors per month. The site is being redesigned and will include an open-source data toolkit to help lenders demonstrate the foundational need for an SPCP.

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NATIONAL HOUSING CONFERENCE The National Housing Conference (NHC) is proud to help lead this initiative to create 3 million net new Black homeowners by the end of 2030. It’s an audacious goal, but achievable if we all work together to change the many barriers that still exist for Black first-time homeowners.

HOMEBUYER EDUCATION The Black Homeownership Collaborative launched the first consumer-oriented version of the 3by30.org website on Juneteenth 2022 in Atlanta, Georgia. Multi-generational first-time homebuyers have parents and close family that can serve as trusted and experienced advisors throughout the homebuying process. First-generation homebuyers, however, lack these resources.

The 3by30 website serves as a virtual advisor, providing trustworthy guidance to homebuyers; and connects users with real estate professionals, HUD-approved counseling agencies, and lenders. › 3by30 Affordability Calculator.

The Collaborative worked with homeownership counselors and financial services experts to develop an affordability calculator that provides consumers with the information they need without defaulting to a downpayment they can’t afford. Rather than asking the consumer to guess their downpayment, this interactive calculator starts with the homebuyer’s existing savings and other

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downpayment resources to calculate the home price that is within their price range. › Professional guidance. We are excited to announce an expansion of our real estate professionals, lenders, and homeownership counselors within 11 markets across the United States. No matter where a potential homebuyer may be in their journey, 3by30.org provides individuals with trusted advisors all in one place.

POLICY

Mortgage Insurance Premiums

LOAN LEVEL PRICE ADJUSTMENTS

NHC has strongly advocated for a MIP reduction to address America’s growing affordability housing crisis. The Black Homeownership Collaborative signed a joint letter in October 2022 urging HUD to meaningfully reduce the MIP and suspend the life of loan requirement to assist borrowers with FHA-insured loans, who are disproportionately people of color. In February 2023, HUD announced the reduction of the annual mortgage insurance premiums by 30 basis points. We recognize the reduction of the MIP as an important step forward and will continue to work with the administration to eliminate the “life of loan requirement” on FHA mortgages to help first-time homebuyers build wealth faster, as is the case with conventional conforming mortgages.

NHC continues to strongly advocate for the removal of Loan Level Price Adjustments (LLPAs) on Purchase Money Mortgages (PMMs). Some progress was made by the recent pricing grid update from the Federal Housing Finance Agency that reduced LLPAs for many borrowers limited by wealth or income. NHC has argued that LLPAs have long outlived their usefulness and GSE guarantee fees are the appropriate way to pay credit risk guarantees.

HOUSING SUPPLY In the Fall of 2022, a diverse group of affordable housing leaders, including the National Housing Conference, met with senior White House officials, including principals of the National Economic Council, Department of Housing and Urban Development, and the Federal Housing Finance Agency to address housing supply and affordability challenges across the country. One of NHC’s top policy priorities continues to be the passage of the Neighborhood Homes Investment Act. Neighborhood Homes is the only legislation unanimously endorsed by the Collaborative. We believe this legislation is a critical tool in our effort to close the racial homeownership gap.

EMPLOYER-ASSISTED HOUSING TOOLKIT NHC launched a new Employer-Assisted Housing (EAH) Toolkit providing a step-bystep process that serves to empower organizations and policymakers to explore solutions to housing, transportation, and employment. EAH programs provide homebuyers with down payment and closing cost assistance in the form of a loan, which is forgiven over a period as long as the employee remains with the organization. EAH programs create homeownership opportunities for individuals who may not otherwise be able to finance the purchase of a home.

One of NHC’s top policy priorities continues to be the passage of the Neighborhood Homes Investment Act.

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NATIONAL URBAN LEAGUE The National Urban League (NUL) is a historic civil rights and urban advocacy organization.

Driven to secure economic self-reliance, parity, power and justice for our nation’s marginalized populations, the NULworks toward economic empowerment and the elevation of the standard of living in historically underserved urban communities. NUL has over 20 years of experience operating as a U.S. Department of Housing and Urban Development (HUD) approved housing counseling Intermediary that currently engages a network of more than 30 local affiliate partners in 16 states and the District of Columbia. Comprehensive Housing Counseling makes housing options more accessible and sustainable by leveling the economic playing field for African American and other minority renters, homeowners, and the homeless.

INITIATIVES, IMPACTS, AND RESPONSES Comprehensive Housing Counseling Program NUL through its signature Comprehensive Housing Counseling program, has a proven track record of fostering increased housing accessibility and sustainability for its clients by offering pathways for increased economic opportunity for minority and historically marginalized renters, homeowners, and those experiencing homelessness. Leveraging diverse expertise and robust experience, NUL partners with its

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2025 Empowerment Goal: Every American lives in safe, decent, affordable and energy efficient housing on fair terms network to align client services with the unique needs of each community served, including but not limited to budget and credit, pre- and post-purchase, foreclosure prevention, rental, homeless, predatory lending, reverse mortgage, and fair housing, education, and counseling.

NUL consistently meets program standards and ensures best practices are followed across our network furthering the successful deployment of housing counseling services. Additionally, NUL provides technical assistance, oversight, compliance, and quality control for each subgrantee, resulting in the successful coordination of housing counseling activities and services that address clients’ housing and financial needs.

In 2022, approximately 18,000 participants enrolled in comprehensive housing counseling services, out of which: › Approx. 10,000 participants engaged in PrePurchase Counseling and Education services. › Approx. 3,000 participants engaged in Foreclosure Counseling and Education services. › Approx. 3,000 participants engaged in Rental Counseling and Education services. › Approx. 7,000 participants engaged in Financial Literacy Coaching and Education services.

Diverse Appraiser Initiative The coronavirus pandemic has drawn widespread attention to existing inequalities in American society, including the racial wealth gap in real estate. As a result, the National Urban League is prioritizing a series of initiatives designed to reimagine the appraisal process through a lens of equity and justice, while generating heightened awareness and fresh urgency within the appraisal community and broader financial services sectors.

An appraisal plays a crucial role in buying, selling or refinancing a home, determining for the seller, buyer and lender how much a home is worth. The National Urban League believes the deeply ingrained business practices that guide undervaluing homes in majority-Black communities must be assessed and overhauled as part of the industry’s re-evaluation of its organizational culture.

While achieving equity in homeownership and building generational wealth is deeply challenging, the National Urban League is working with Wells Fargo to build a pipeline of diverse appraisers through our Entrepreneurship Centers that empower Black homeowners and communities. The National Urban League (NUL) Entrepreneurship Center Program (ECP) provides free management counseling, mentoring, and training services for entrepreneurs looking to start, grow or scale their business. The implementation of the skills learned will enable minority entrepreneurs to improve operations, increase capacity, obtain financing and contracts, and better serve their customers, with the goal of creating jobs that will lead to sustainable businesses, and ultimately generate wealth for themselves, their families, and communities. The ECP has 13 network Entrepreneurship Centers (ECs) located in Urban League affiliates in Atlanta, GA; Baltimore, MD; Chicago, IL; Cincinnati, OH; Cleveland, OH; Houston, TX; Jacksonville, FL; Las Vegas, NV; Los Angeles, CA; New Orleans, LA; Philadelphia, PA; St. Louis, MO; and Washington DC. NUL also supports an additional 15 out-of-network Entrepreneurship Centers/Programs at other UL affiliates including Charlotte, NC.

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The mainstreaming of extremist ideology is an existential threat to American democracy, the rule of law, and decades of hard-won progress toward an equitable, inclusive, more perfect union.

— Marc H. Morial President and CEO, National Urban League

The State of Black America® Report 2023 Democracy in Peril: Confronting the Threat Within raises the alarm on extremist ideology taking root in the nation’s classrooms, law enforcement and military institutions, and the halls of Congress.

The report explores the inequities across America’s economics, employment, education, health, housing, criminal justice, and civic participation systems through research and the words of our contributors. In this 47th edition, we are raising the alarm around the explosive growth of far right and domestic extremism and the threat it poses to our communities, our families, and our nation. This extremist movement not only threatens the quality of life of Black Americans but the very DNA of what it means to live in a nation that calls itself the land of the free.

The 21 Pillars for Redefining Public Safety and Restoring Community Trust was introduced as a framework for advocacy that redefines public safety and restores community trust—paving a way beyond the status quo. Our forward-thinking plan is designed to protect and preserve life, dignity, and trust while building safer communities.

3 BY 30 ANNUAL REPORT

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