Trade group, key lawmakers support addressing racial disparities in mortgages
ALBANY — The state’s largest trade group of mortgage lenders and key members of the State Legislature say they support action that would address the racial disparities in mortgages reported by state Attorney General Letitia James on Tuesday.
In addition, a bill introduced in the legislature would create local public banks that would use government funds to improve access to mortgages in underserved communities. James said she supports that measure.
Other bills would subsidize down payments and other costs for New Yorkers who would be the first in their family to try buying a home. James’ report said those costs are among the obstacles faced by Blacks and Latinos seeking to buy their first homes.
On Tuesday, lenders said they support measures that would address race-based disparities.
“While we need to read the full report to better understand the nuances, it is undeniable that our country’s past legacy of systemic discrimination has resulted in disparities in wealth accumulation,” said Christina Wiley, executive director of the New York Mortgage Bankers Association. “This history is keenly felt in unacceptable gaps in homeownership rates for minority borrowers.
“We are committed to solutions to close the gap,” Wiley said. “The New York Attorney General’s report identifies a few such solutions — community grants and increased down payment assistance — that would help in our collective efforts.”
She said additional improvements could involve reforming zoning laws to allow more housing in communities and reduce local government regulations that can make it particularly difficult for first-time homebuyers.
“We encourage the New York Attorney General and legislature to work constructively and in partnership with industry to develop constructive solutions that unlock homeownership for more New Yorkers,” Wiley said.
Justin Henry, spokesman for Gov. Kathy Hochul, said, “Our office is actively working to address the racial gap in housing, and we appreciate the attorney general’s attention on this important issue.”
Within the legislature, there also is support for more action.
“The Senate majority has always taken these issues seriously, including when we held numerous statewide hearings on the New York real estate market and passed groundbreaking legislation to combat blatant and hateful discrimination in this market,” said Michael Murphy, spokesman for the Democratic majority. “We will look at this report and act accordingly to protect the rights of all New Yorkers.”
Pending legislation includes allowing cities, towns and regions to create public banks to “help expand access to affordable financial services in underserved communities.”
The proposed New York Public Banking Act would “effectively address the racial and economic injustices that existed in this state for many years and generations,” according to the bill.
The sponsors say the public bank would provide a return to taxpayers from loans and provide services now lacking “particularly to unbanked and underbanked communities.”
Senate Banking Committee chairman James Sanders Jr. (D-Queens) called the findings in James’ report “horrific and damning.”
“A municipal public bank would address the needs of the locality, including affordable housing, public infrastructure and small business loans,” said Sanders, a sponsor of the bill. Public banks “could create economic opportunities and invest taxpayer funds more efficiently on economic development for the benefit of all.”
Assembly Republican leader Will Barclay (R-Pulaski) said there is room for improvement to fight racial disparity in mortgages, but noted banking already is heavily regulated in part to ward against the discrimination cited in James’ study.
“In New York, special attention is paid to lending practices to ensure they are nondiscriminatory,” Barclay said. “While there is always room for improvement, as usual, far-left Democrats want to take a page out of [Sen.] Bernie Sanders’ playbook and implement radical policy changes that will not solve the problem, but rather, expedite the already tragic exodus of the people and businesses out of our state.”
New York already has programs and proposals aimed at the concerns in the attorney general’s report.
The State of New York Mortgage Authority offers low-interest mortgages to help income-qualified applicants buy their first homes. The agency in part removes some hurdles faced by first-time homebuyers and guards against discrimination.
ALBANY — The state’s largest trade group of mortgage lenders and key members of the State Legislature say they support action that would address the racial disparities in mortgages reported by state Attorney General Letitia James on Tuesday.
In addition, a bill introduced in the legislature would create local public banks that would use government funds to improve access to mortgages in underserved communities. James said she supports that measure.
Other bills would subsidize down payments and other costs for New Yorkers who would be the first in their family to try buying a home. James’ report said those costs are among the obstacles faced by Blacks and Latinos seeking to buy their first homes.
On Tuesday, lenders said they support measures that would address race-based disparities.
“While we need to read the full report to better understand the nuances, it is undeniable that our country’s past legacy of systemic discrimination has resulted in disparities in wealth accumulation,” said Christina Wiley, executive director of the New York Mortgage Bankers Association. “This history is keenly felt in unacceptable gaps in homeownership rates for minority borrowers.
“We are committed to solutions to close the gap,” Wiley said. “The New York Attorney General’s report identifies a few such solutions — community grants and increased down payment assistance — that would help in our collective efforts.”
She said additional improvements could involve reforming zoning laws to allow more housing in communities and reduce local government regulations that can make it particularly difficult for first-time homebuyers.
“We encourage the New York Attorney General and legislature to work constructively and in partnership with industry to develop constructive solutions that unlock homeownership for more New Yorkers,” Wiley said.
Justin Henry, spokesman for Gov. Kathy Hochul, said, “Our office is actively working to address the racial gap in housing, and we appreciate the attorney general’s attention on this important issue.”
Within the legislature, there also is support for more action.
“The Senate majority has always taken these issues seriously, including when we held numerous statewide hearings on the New York real estate market and passed groundbreaking legislation to combat blatant and hateful discrimination in this market,” said Michael Murphy, spokesman for the Democratic majority. “We will look at this report and act accordingly to protect the rights of all New Yorkers.”
Pending legislation includes allowing cities, towns and regions to create public banks to “help expand access to affordable financial services in underserved communities.”
The proposed New York Public Banking Act would “effectively address the racial and economic injustices that existed in this state for many years and generations,” according to the bill.
The sponsors say the public bank would provide a return to taxpayers from loans and provide services now lacking “particularly to unbanked and underbanked communities.”
Senate Banking Committee chairman James Sanders Jr. (D-Queens) called the findings in James’ report “horrific and damning.”
“A municipal public bank would address the needs of the locality, including affordable housing, public infrastructure and small business loans,” said Sanders, a sponsor of the bill. Public banks “could create economic opportunities and invest taxpayer funds more efficiently on economic development for the benefit of all.”
Assembly Republican leader Will Barclay (R-Pulaski) said there is room for improvement to fight racial disparity in mortgages, but noted banking already is heavily regulated in part to ward against the discrimination cited in James’ study.
“In New York, special attention is paid to lending practices to ensure they are nondiscriminatory,” Barclay said. “While there is always room for improvement, as usual, far-left Democrats want to take a page out of [Sen.] Bernie Sanders’ playbook and implement radical policy changes that will not solve the problem, but rather, expedite the already tragic exodus of the people and businesses out of our state.”
New York already has programs and proposals aimed at the concerns in the attorney general’s report.
The State of New York Mortgage Authority offers low-interest mortgages to help income-qualified applicants buy their first homes. The agency in part removes some hurdles faced by first-time homebuyers and guards against discrimination.
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
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