September 3, 2017

New Financial Center Aims to Close Racial Wealth Gap 
By Hazel Trice Edney

(TriceEdneyWire.com) - During the 2008 housing crisis, an estimated 7 million Americans lost their homes due to foreclosure. African-Americans were hit the hardest with a loss of nearly $200 billion, according to the Center for Responsible Lending.

As the economy has struggled to recover and the housing market is now at a boon, a groundbreaking new program aims to permanently restore the wealth of Black homeownership - through new career opportunities and financial education at historically Black colleges and universities.

The Center for Financial Advancement, to launch this semester at Fisk University in Nashville, "will elevate money management skills, teach students about credit and homeownership plus position many for a financially rewarding career in the mortgage industry," according to a press release.

Fisk will be the first HBCU to participate in the program, a collaboration between Wells Fargo, Mortgage Bankers Association (MBA), Bank of America, and HomeFree-USA, a HUD-approved non-profit organization that specializes in homeownership development, foreclosure intervention and financial coaching.

"There is desire in the African-American community to move up and to uplift ourselves. We just need a little bit of guidance, some direction and just a bit of advice," said HomeFree-USA President/CEO Marcia Griffin, a Fisk alumni and founder of the new program. "The reality is this: Money is made off the backs of those who don't know. The less we know, the more somebody's going to make off of us. The less we know, the more opportunity there is for rip off. I'm here to show the mortgage, real estate, and finance industries what we can do - not just HomeFree-USA, but what HBCUs can produce."

Griffin believes the training of the next generation of mortgage financiers by HBCUs could be pivotal. The need to expand diversity and inclusion in the mortgage industry will be crucial as the face of the typical homebuyer is changing and as the population of America becomes increasingly brown, says a statement announcing the program. Unemployment among Black youth is twice that of White youth according to the Bureau of Labor Statistics.

Yet, a 2015 study by the Stratmor Group found:The average age of a mortgage loan officer is 47. About 10 percent of loan officers are over the age of 60 while only 3.3 percent are younger than 30. Only 10 percent of loan officers who reported their ethnicity were Hispanic or Latino, and only 3 percent identified as Black or African-American, while 81 percent self-identified as White. Organizers of the new center say it aims to address all of these racial disparities and more.  

"The benefits in this partnership are two-fold," said David H. Stevens, President/CEO of the Mortgage Bankers Association.  "African-American students will develop important money management and financial literacy skills, while also having the opportunity to explore a career in the real estate finance field.  At the same time, the industry will benefit from an influx of better educated potential homeowners, not to mention an influx of diverse new talent into the industry who can bring homeownership opportunities in traditionally underserved communities."

Gross racial disparities in America's economic outlook are well-known to economists, who say the wealth gaps will not close without targeted efforts. "African-Americans still earn just 60 percent of what Whites earn.  We have just 7 percent of the wealth that Whites have.  We have double the unemployment rates.  Even with equal incomes, we find it more challenging to get mortgages or other access to capital.  And our economic rights are being challenged every day," economist Julianne Malveaux recently wrote in a column, published in Black-owned newspapers across the country.

Disparities in homeownership is "the biggest driver of the racial wealth gap", concludes a Brandeis University study on the roots of the widening wealth gap. The study also points to "toxic inequality" rooted in policies and tax preferences that "favor the affluent". This kind of information - typically unknown to many in the Black community - will be taught in the Center for Financial Advancement.

"We are proud to be part of this effort to prepare more African-Americans for successful careers in the mortgage industry while also promoting financial literacy that can lead to an increase in African-American homeownership," said Brad Blackwell, executive vice president; Housing Policy and Homeownership Growth Strategies, Wells Fargo, the founding supporter of the Center for Financial Advancement. "Wells Fargo recognizes the important role a diverse workforce plays in making homeownership possible for people in all communities."

Frank L. Sims, Fisk's immediate past president, worked closely as part of the collaboration to assure the establishment of the center. "The mortgage industry has a tremendous opportunity to work with Historically Black Colleges and Universities and nonprofit leaders to ensure that students are well prepared to be the homebuyers of tomorrow," said Sims. "By providing college students a sound foundation, the Center for Financial Advancement will play a crucial role in ensuring the financial readiness of future generations."

Ranked within the top 10 of HBCUs by U. S. News and World Report, Fisk now has a new President Dr. Kevin Rome, who, in an interview with The Tennessean, pointed to "entrepreneurial opportunities" as a possible strategy for growth on campus. 

Rome adds, "Fisk has highly skilled and highly intelligent students who can excel in any endeavors that they pursue. It's important that we seek opportunities in non-traditional highly lucrative fields where African-Americans continue to be underrepresented. As consumers who engage in the banking and mortgage industry, African-Americans should equally benefit from the wealth that is created by the industries. This partnership will hopefully lead to a model that funnels more African-Americans into careers that benefit our community and the American economic engine."

The more than 700 students from all majors on the 40-acre campus will have the opportunity to use the center.
"The point here is that people from all majors and all skill levels can get into the industry, and this is the industry where money is made," said Griffin. As an example, she pointed to a HomeFree-USA intern, whose first job at a mortgage agency, paid $80,000 annually - well above the average $50,000 starting salary of college graduates in 2017.

Griffin envisions the Center as a growing program, which will gradually expand to other HBCU campuses. 
She also notes that the Center is not just for students, but also for parents, faculty and the community on HBCU campuses. "Because we are in the real estate and financial services business, anything that we can do for and with the families in terms of buying a home, keeping a home, credit enhancement or anything financial. That's a part of the package."

At a glance, the Center for Financial Advancement will provide:

• An annual series of five seminars conducted jointly by HomeFree-USA, and mortgage banking leaders.
• The curriculum will include banking and savings basics, mortgage lending, student loan debt, homeownership, credit reports, overall financial capability, and most importantly, enriching information about mortgage industry opportunities.
• Students who complete the entire series of seminars will receive a Certificate of Financial Readiness, signed by the leading sponsors.
• Center partners will have access to a pool of interns and potential permanent hires, get  CRA credit and tremendous branding opportunities.

The program is receiving wide applause from the financial industry.

Jeffery Schummer, vice president of Education Business Development for the MBA concludes, "Having more professionals of color in the mortgage business will grow the pipeline of homeowners of color. That's good for every single aspect of the community."

Sept. 3, 2017

Public Policy After Hurricane Harvey
By Julianne Malveaux

(TriceEdneyWire.com) - Hurricane Harvey did everything people said it would do, and more.  It either drowned or swallowed everything it touched in Corpus Christi, Houston, Beaumont, the gulf coast of Louisiana, and a bunch of other places.  Already, estimators say that Harvey may be our nation’s costliest disaster to date, costing at least $190 billion, or about 1 percent of our gross domestic product (GDP).  The damages are both individual – think of the uninsured person who lost her home, or the worker whose job has now been eliminated, and national – Houston is our nation’s fourth largest city, and an epicenter of the oil and gas industry.

That man who occupies 1600 Pennsylvania Avenue traveled to Texas with his $40 cap, available on his website.  His wife, who took two suitcases for the day trip, managed to switch jackets and caps, and come out of her lizard heels and into a pair of sneakers.  They let us know what was important to them – the “epic” hurricane, the size of the crowd gathered to see Trump (more likely, unemployed folks waiting for food or housing placements), and the “team”.  They didn’t tell a single soul that they empathized and would work to help.

No matter.  People came forward without being asked, contributing food, their boats, towels, clothing, and so much more.  In crises like these, we are reminded about the many ways we Americans come together, contributing to relief funds (please check them out before you send your cash), showing up to volunteer, opening up homes and more to help.

What role must policy play in the aftermath of Hurricane Harvey?  For one thing, we must define and refine the role of government in times of disaster like this.  Government clearly dropped the ball with Hurricane Katrina, and some of the lessons from that tragedy have been applied in Houston.  At the same time, General Russel Honore, the hero of the Katrina debacle, said that in the twelve years since Katrina, so much more should have been done around preparation for a natural disaster.  Why haven’t we done the work? Often, we’ve been penny-wise and pound-foolish, choosing to cut expenses while incurring even greater costs.  And if 45 has his way, we’ll be cutting even more.  The budget he submitted to Congress cuts FEMA, the National Weather Service, and other agencies essential in responding to crises like Harvey.

I never ever thought I’d say it but New Jersey Governor Chris Christie has a point.  You don’t get to rail against disaster aid when it is going to someone else’s state, but demand it when your state is impacted.  Texas Senator Ted Cruz was not wrong, he was dead wrong in voting against relief for those who survived Hurricane Sandy.  And now, he is revealed as a craven hypocrite when he wants more for Texans than he offered to residents of New Jersey.

Either we will step up in crises or we will not.  And if we step up, we need to step up for everyone.  Harvey did not discriminate.  It swallowed the expanse of mansions, even gated ones, as well as the small apartments of uninsured working class folks.  Only one in 6 of those affected by Harvey were insured because premium costs rose quickly, forcing some families to pay as much as $2000 a year, even as they earned relatively low wages.  If we step up, we have to step up for everyone, not just those with sterling documentation and the right insurance.

What is our nation of a nation?  Do we believe that all should be protected from catastrophe?  How do we implement such beliefs?  And with a tone-deaf narcissist leading our nation, how do we transcend our terribly flawed leadership to adhere to our ideals?

Julianne Malveaux is an economist, author, and Founder of Economic Education. Her latest book “Are We Better Off: Race, Obama and public policy is available via amazon.com. For booking, wholesale inquiries or for more info visit www.juliannemalveaux.com

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Sept. 3, 2017

Too Much at Stake
By Dr. E. Faye Williams, Esq.

(TriceEdneyWire.com) - Like most persons of good conscience, my heart, condolences and prayers reach out to all affected by hurricane Harvey.  This storm, of unexpected magnitude, threatens to adversely impact the lives of millions of people for the foreseeable future.  Generous estimates suggest recovery will extend for months and possibly years.  These estimates are valid only if additional damage related to breaking dams and levees is not realized.

I'm personally affected by these events because I have immediate family members who live in Houston and areas of impact in Louisiana.  Giving thanks to Almighty God, they've been unaffected by the worst elements of the storm.  We only pray that remains true.  Having lived much of my life under the shadow of recurring hurricanes and floods, I've learned that material items can be replaced and that the true reward is being spared loss of life.

Considering the demonstrations of hatred and inflammatory rhetoric during the past several weeks, I was heartened by the spirit of universal humanity displayed in the rain and flood's aftermath of shared despair.  We saw that race, gender, nationality, age, sexual orientation and condition of wealth seemed immaterial.  What mattered was that human lives were threatened by the ravages of Mother Nature and mutual safety outweighed the superficialities of cultural identity.

I am sure that the struggles of the affected population's return to normalcy will be lengthy and uncomfortable.  One only wonders how and when the thousands displaced will achieve the daily routine they expect.  Questions loom:  How long will shelters be needed?  Where will refugees go?  Many residents won't be able to return to their homes.  Lack of adequate flood insurance coverage will prevent many from affording to rebuild.  Structural damage and the potential for mold and other disease will render many homes uninhabitable.

When the displaced can return home, how long will it be before human services are restored?  How long will it take to restore clean drinking water and the reliable movement of food and other essentials?  When can they expect the restoration of electricity, natural gas, automotive fuels?  How long will it take to verify the integrity of the roads, bridges and buildings that take us to-and-from the places we work?  What long-term economic impacts will those citizens have to endure?  I ask these questions because, as with Katrina or Sandy, there are no short-term solutions.

It is ironic that many Texas Congressmen and Senators who, for two months, delayed the disbursement of disaster funds in the wake of hurricane Sandy must now appeal for immediate relief for Texas.  Until now, they seemingly failed to realize that, when the patient is in pain, pain-relief is the only desired outcome.  They’re learning a lesson common to humanity -- "Me today! You tomorrow!!!"

I also found it 'interesting' that a mere ten days before Harvey made landfall, #45 issued an Executive Order that rescinded an earlier EO issued by President Obama.  President Obama's order was designed to require future construction to make infrastructure more resilient to the effects of climate change, such as the unnatural deluge and flooding associated with Harvey.  Ostensibly, #45's order was issued to speed up the issuance of construction permits, but I believe, as he has so often done in his short administration, #45's intent was to purge any responsible action taken by President Obama from the historical record of the United States.

The tone and quality of current public discourse gives an unobstructed look into the hearts of many in positions of authority.  What is crystal clear from this disaster is that we must not allow those responsible for managing assistance to our fellow citizens to allow partisanship or personal prejudice to interfere with the fair administration of relief.  There's too much at stake!!!

(Dr. E. Faye Williams is President of the National Congress of Black Women www.nationalcongressbw.org.  202/678-6788)

September 2, 2017

To Be Equal 

The Nation Must Come Together to Help Hurricane Harvey Victims Rebuild

By Marc H. Morial

(TriceEdneyWire.com) - “During difficult times like this, we’re reminded that we’re bound together and we have to look out for each other.  And a lot of the things that seem important, the petty differences melt away, and we focus on what binds us together and that we as Americans are going to stand with each other in their hour of need.” – President Barack Obama

As Texas and Louisiana begin to recover from the devastation of Hurricane Harvey, our thoughts and prayers – as well as whatever donations we can spare – are with the people who were impacted. We pray for the families of those who lost their lives, and for the safety of the first responders and ordinary citizens who have risked their own lives to save others.

We in the Urban League Movement are supporting our colleagues in the region, Judson Robinson, President and CEO of the Houston Area Urban League and Erika McConduit, President and CEO of the Urban League of Louisiana, as they develop plans for the Herculean task of helping their communities recover and rebuild.

The nation has responded with concern and generosity, but also with a bit of counter-productive armchair quarterbacking. It’s natural to imagine, when confronting the horror of a tragedy, that things could have been different, of only one decision or another had gone a different way. Houston, which took the brunt of the damage, was ordered by Mayor Sylvester Turner not to evacuate.  To many watching from afar – especially after scenes of rescue by boat became commonplace, this decision seemed ill-advised. Sadly, American memories can be short, but Houstonians remember. A dozen years ago, as Hurricane Rita bore down on the city, more than 2.5 million residents tried to evacuate at the same time. More than 130 people died in the ensuing chaos, more than have been lost to any storm in Texas since 1900.

Cities face many challenges day-to-day, but when a natural disaster is bearing down, all efforts should be focused on saving lives. That’s why much of the nation reacted in horror to the news that The Border Patrol would not suspend checkpoints during the storm – deterring immigrants from seeking shelter from the storm and putting lives at risk.  Texas has passed one of the most stringent anti-immigrant laws in the nation, essentially outlawing Sanctuary City policies like Houston’s. Four days after the storm hit, a federal judge blocked enforcement while legal challenges proceed, but as it was in force during the worst of the crisis, Mayor Turner issued a personal reassurance that he would personally defend any immigrant detained as a result of seeking shelter from the storm.

The late children’s television host Fred Rogers said when he was a child and frightened by the news of disasters, “’Always look for the helpers,’ she’d tell me. ‘There’s always someone who is trying to help.’ I did, and I came to see that the world is full of doctors and nurses, police and firemen, volunteers, neighbors and friends who are ready to jump in to help when things go wrong.”

I would challenge us to go one step further, and be the helpers.