Revolutionary new mortgage calculator released
MEMPHIS, Tenn. – May 31, 2023 – On Wednesday, May 31, the Black Homeownership Collaborative, a coalition of more than 100 organizations and individuals, brought together ??national and local housing advocates, elected officials and local leaders at the National Civil Rights Museum to recognize the two-year anniversary of its 3by30 initiative and to discuss strategies to increase Black homeownership in Memphis and across the country.
As part of the initiative, a revolutionary new mortgage calculator was released on www.3by30.org at the event. The mortgage calculator provides detailed, easily navigated options for determining mortgage affordability without requiring an estimation of the person’s downpayment percentage.
Federal Housing Finance Agency (FHFA) Director Sandra Thompson kicked off the event discussing the wealth gap, purchasing power and other challenges facing prospective Black homebuyers. “The homeownership gap today is wider than in the 60s when discrimination was legal,” said Director Thompson as she discussed steps FHFA, Fannie Mae, and Freddie Mac (the Enterprises) are taking to address this gap including the Enterprises’ equitable housing finance plans which were developed to address barriers experienced by renters, aspiring homeowners, and current homeowners – particularly in Black and Latino communities. “We must do everything we can to help people understand how important credit is – more important than a downpayment. Homeownership is not out of the realm of possibility – it is possible, it is doable, and we must do everything in our power to be helpful and not harmful in that process.”
The Black Homeownership Collaborative is committed to creating 3 million net new Black homeowners by the end of 2030. Since its inception, the Black homeownership rate has increased from 44% when it launched in 2021 to 46.5% today. Conference speakers and panelists examined the role cities like Memphis can play to advance Black homeownership and explored intentional strategies and solutions for engaging with the estimated 116,000 mortgage-ready, Black millennials in the region.
“There is a connection between racial inequality and wealth inequality. Homeowners have 40 times the wealth of renters, which should concern us as we work to close the 30 percentage-point gap in homeownership rates between Black and White Americans,” said Bryan Greene, co-chair of the Black Homeownership Collaborative and Vice President of Policy Advocacy at the National Association of REALTORS®. “The 3by30 initiative has tangible, actionable and measurable steps to shrink this gap and make homeownership a reality for millions of people previously excluded.”
“As a member of the Black Homeownership Collaborative, we are developing tools and resources to break down the barriers that Black Americans face on the path to homeownership,” Cy Richardson, co-chair of the Black Homeownership Collaborative and Senior Vice President for Programs at the National Urban League. “Black homeownership is not just about owning a house; it is about reclaiming power, rewriting narratives, and building a foundation of economic empowerment. It is a catalyst for intergenerational wealth, community resilience, and the transformation of dreams into reality.”
The 3by30 plan identifies a set of seven tangible, actionable and scalable steps that will make it possible to increase Black homeownership by 3 million net new homeowners by 2030; an increase of more than 10 percentage points in the Black homeownership rate, bringing it to a level never previously attained. The seven steps are focused not only on bringing in new homeowners but also sustaining existing homeowners.
“Black homeownership is the foundation for closing the Black-White wealth gap and creating a more inclusive and just society,” says Lydia Pope, co-chair of the Black Homeownership Collaborative and president of the National Association of Real Estate Brokers. “With the 3by30 initiative as our compass, the Black Homeownership Collaborative is committed to redressing the public and private discriminatory policies and practices that were barriers to Black homeownership. We can construct a sustainable path toward expanding homeownership opportunities for Black Americans.”
The Black Homeownership Collaborative is led by a steering committee of executives from the Mortgage Bankers Association, NAACP, National Association of REALTORS®, National Association of Real Estate Brokers, National Fair Housing Alliance, National Housing Conference, and the National Urban League, with research by the Urban Institute.
To learn more about the Black Homeownership Collaborative’s 3by30 initiative, visit www.3by30.org.
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