Washington (DC), Today Congressman Al Green (TX-09) called on private mortgage servicers to better address the needs of struggling minority homeowners during a hearing of the House Committee on Financial Services regarding the current foreclosure crisis.
Congressman Green emphasized that many minority homeowners have been disproportionately impacted by questionable lending practices. “Doing good overall will not help those minority communities without specific intervention,” he said.
Congressman Green mentioned that, according to a 2006 report by the Center for Responsible Lending, African-Americans were 6 to 34 percent more likely to receive higher-rate home purchase and refinance loans than similarly-situated white borrowers. Hispanic borrowers, according to the same report, they were 29 to 142 percent more likely to receive a higher-rate loan
“These practices have unfairly harmed responsible families who purchased their homes and did everything right. We have to find ways to ensure that they get a fair chance to stay in their homes”, said Congressman Green after the hearing
According to analysts, foreclosures have accelerated into the third quarter of 2009. RealtyTrac reports a 7 percent increase in properties involved in the foreclosure process in July 2009 compared to June of the same year and Credit Suisse estimates that in the next four years 8.1 million homes, representing 16 percent of all mortgages, will enter foreclosure.