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86 I N D U S T R Y I N S I G H T / K E V I N S T E I N Homeownership remains the primary way that Americans build wealth and pass it on to the next generation. But predatory lending and abusive mortgage-servicing practices have led to a tremendous loss of wealth among low-income communities and communities of color. e pendulum has swung from one ex- treme to another, with redlining returning to neighborhoods that were recently subject to reverse redlining. In some parts of California, where mortgage lend- ing is occurring in neighborhoods of color, it often is leading to the displacement of families and small businesses that have been in the community for genera- tions. Single-family and multi-family mortgage origination and servicing trends have only exacerbated inequality. A LOOK AT LENDING Federal Housing Administration (FHA) loans have a complicated history. ese loans have provided access to homeownership for many families of color and working families who otherwise might not have been able to get a home. Any lender that does not offer an FHA loan product (and a good Community Reinvest- ment Act or CRA portfolio loan product) is demonstrating a questionable commitment to serving the community. However, lenders have often relied on FHA loans to serve perceived "emerging and multicul- tural markets" and "inner city" neighborhoods, even where borrowers qualified for lower-cost conventional loans. Lenders should commit not only to offering FHA (and CRA portfolio prod- uct) loans but also to ensuring that all borrowers receive the best-priced product they qualify for, whether it is an FHA loan or conventional loan. e largest banks continue to lag when it comes to lending to low- and moderate-income families and families of color, according to 2017 Home Mortgage Disclosure Act (HMDA) data analyzed by the National Community Rein- vestment Coalition. Banks have retreated from FHA loans and are increasingly trying to meet their CRA obligations through the purchase of loans made by other lnders, which provides minimal added value to communities. Concerns about the impacts of mortgage and servicing practices on seniors continue to rise. Seniors who are struggling with mortgage payments may be pressured to take out a reverse mortgage, which can make them vulnerable to losing their homes. Data the California Reinvestment Coalition (CRC) obtained from a Freedom of Information Act request of HUD revealed an astounding 646 percent increase in the number of home equity conversion mortgage (HECM) foreclosures, with an average of 3,664 foreclosures per month reported nationwide over a nine-month period in 2016. Nonborrower spouses continue to lose their homes despite purported fixes to the HECM Real estate professionals are reporting that borrowers of color with good income and good credit are still finding it challenging to get loans to purchase homes. THE THIN RED LINE