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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff According to Harvard University's Joint Center for Housing Studies 2017 State of the Nation's Housing, nearly 19 million U.S. households paid more than half of their incomes for housing. According to Ellie Mae's June 2017 Origination Insight Report, the closing time for all loan types ticked up a tad in June to 43 days, up from 42 days the month before. WATT: CHALLENGES FACING AFRICAN- AMERICAN HOMEOWNERS INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S PAGE 24 SVP of Operations, Accumatch FIVE MINUTES WITH WITH Kim Morris At the National Association of Real Estate Brokers' 70th Annual Convention in August, Federal Housing and Finance Agency Director Mel Watt brought up issues facing African-American homeowners and what can be done to fill critical parts of the real estate brokers' mission: ensuring access to credit and ensuring sustainable homeownership for African-Americans. According to Watt, the reasons African- American homeownership has declined start with historical factors: disproportionate African-American unemployment and underemployment, low and stagnant wages, nonexistent and depleted savings, and lower wealth in general. In addition to this, bad business practices such as subprime lending and predatory lending that targeted minorities with mortgages that were designed to fail, among many other things, contributed to the slump. Secondly, the increase in people in general, but especially millennials, wanting to be flexible and rent instead of buy has affected homeownership rates. Lastly, cultural and social change, such as the delay in marriage, has increased. Most couples after marriage buy houses, but with the delay, homeownership is being postponed, too. ough Watt acknowledged that homeownership isn't right for everyone, he explained that everyone should be advocating for African-Americans to diversify their investments beyond just their homes, as homeownership has been a great way for families to build wealth thus far. "Studies confirm that, even after accounting for the severe adverse impact of the housing crisis, homeownership continues to be a powerful tool for building wealth in our communities," Watt said. e FHFA along with Fannie Mae and Freddie Mac, who are in conservatorship, have taken steps to improve access to credit, which is one of the most challenging issues many African- Americans face when obtaining a mortgage. "Our analysis showed that many borrowers were creditworthy and could sustain paying a mortgage, but they did not have the money to cover a large down payment and closing costs," Watt said. "So we approved a limited program that allowed the Enterprises to purchase mortgages with only a 3 percent down payment." Watt hopes to further the understanding of some of the challenges African-Americans face in the housing market and how the FHFA and GSEs are helping find a solution to the problems. "More importantly, I hope my comments reaffirm our commitment to making progress as we seek to reach our common goals," Watt said. "Studies confirm that, even after accounting for the severe adverse impact of the housing crisis, homeownership continues to be a powerful tool for building wealth in our communities." –Mel Watt, Federal Housing and Finance Agency Director Source: WalletHub 2017 Property Taxes By State report HOMEOWNERSHIP RACE GAPS SMALLEST GAPS IN HOMEOWNERSHIP BY RACE 1. Miami 58.9 34.1 44.4 59.8 2. San Diego 48.1 19.7 32.7 49.5 3. Jacksonville, Florida 62.7 39.8 35.3 56.5 4. Washington, D.C. 63.7 43.5 43.4 64.4 5. Austin, Texas 60.1 33 43.8 55.4 6. Las Vegas 49.7 23 38.1 55.1 7. San Jose 50.9 34.2 28.8 56.3 8. Tampa, Florida 57.4 28.3 43.5 61.2 9. Los Angeles 44.4 21.4 30.6 50.6 10. Birmingham, Alabama 72.8 42.2 48.2 62.6 RANK STATE WHITE HOMEOWNERSHIP RATE BLACK HOMEOWNERSHIP RATE HISPANIC HOMEOWNERSHIP RATE ASIAN HOMEOWNERSHIP RATE 1. Buffalo, New York 67.8 22 30.4 34.5 2. Rochester, New York 70.1 21.2 35.6 48 3. Hartford, Connecticut 75 37.6 30.7 48.9 4. Minneapolis 74.3 19.6 34.8 53.5 5. Pittsburgh 69.6 21.7 36 41.7 6. Milwaukee 65 20.3 38.3 47.2 7. Cleveland 69.8 24.4 42.5 52.4 8. New Orleans 59.5 34.2 36.8 79.4 9. Memphis, Tennessee 70.5 70.5 36.6 49.8 10. Boston 63.5 23.1 23.1 52.9 RANK STATE WHITE HOMEOWNERSHIP RATE BLACK HOMEOWNERSHIP RATE HISPANIC HOMEOWNERSHIP RATE ASIAN HOMEOWNERSHIP RATE BIGGEST GAPS IN HOMEOWNERSHIP BY RACE

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