WHEREAS, according to the September 2017 report commissioned by Prosperity Now and Institute for Policy Studies entitled, The Road to Zero Wealth: How the Racial Wealth Divide is Hollowing out America's Middle Class, in 2024, median Black and Latino households are projected to own 60-80% less wealth than they did in 1983, and if the racial wealth divide is not addressed it will be further exacerbated setting Black households on a trajectory to zero wealth in 2053; and
WHEREAS, the NAACP abhors discriminatory and predatory lending practices that put borrowers at risk by trapping homeowners in unaffordable debt and often costs homeowners their homes and life savings; and
WHEREAS, the Civil Rights Act ensures that no person in a democracy is treated unfairly but equal; but yet there are still cases where African American rights are violated; and
WHEREAS, therefore differential treatment discrimination occurs when equally qualified individuals are treated differently due to their race or ethnicity; in mortgage lending, differential treatment might mean that minority applicants are more likely than whites to be discouraged from applying for a loan, to have their loan application rejected, or to receive unfavorable loan terms-even after characteristics of the applicant, property, and loan request that affect creditworthiness are taken into account; and
WHEREAS, some of the discriminatory practices include the ongoing, modern-day "redlining" or refusal to insure mortgages in and near Black neighborhoods, delay and/or denial to refinance loans at lower interest rates for Black homeowners, and the high rate of rejection of credit applications from qualified Black Americans through automated algorithms and machine learning systems; and
WHEREAS, Bloomberg's analysis of Home Mortgage Disclosure Act data for 8 million completed applications to refinance conventional loans in 2020 found that Black applicants allegedly had the lowest approval rate by lenders nationwide in 2020 and additional discrimination allegations against lenders; and
WHEREAS, as reported by Bloomberg, "after the 2008 housing crisis revealed discriminatory treatment, authorities unleashed a wave of penalties against U.S. lending giants."
THEREFORE, BE IT RESOLVED, that the National Association for the Advancement of Colored People reaffirms its past resolutions, (2012) "Saving Homeownership and Building Wealth in African American Communities", (2013) "Overcoming the Racial Wealth Gap Through the Development of Affordable and Sound Mortgage Lending Products for the African American Community and Communities of Color," (2015) "Home Appraisals and Mortgage Lending Discrimination," (2019) "Rent to Own Schemes and Predatory Lending" and "Support of Regional and Municipal Public Banking" condemning discriminatory and predatory lending practices; and
BE IT FURTHER RESOLVED that the NAACP is opposed to the discriminatory practices associated with sub-prime loans, predatory lending, race bias redlining and over charging refinancing African American in this United States of America; and
BE IT FURTHER RESOLVED the NAACP demands that Regulatory Agencies take a closer look at the policies and procedures in lending; set a specific amount on loans, write an addendum to the Home Mortgage Disclosure Act (HMDA) urging Lenders to disclose data to HMDA and comply with requirements under the Community Reinvestment Act to improve equitable outcomes.; and
BE IT FURTHER RESOLVED that the National NAACP Economic Development Office will collect CRA compliance monitoring reports from local and state conferences to develop a national profile and regional trends.
BE IT FURTHER RESOLVED that the NAACP and major U.S. lenders develop a partnership to create a Financial Freedom Centers to provide financial education and combat racial discrimination in mortgage lending etc. We urge lenders to create partnerships which invest in financial freedom centers and other efforts that will improve the relationships with African American communities throughout the nation; and
BE IT FINALLY RESOLVED that a copy of this resolution be submitted to the United States House of Representatives Financial Services Committee, U.S. Senate Banking, Housing and Urban Affairs Committee, Consumer Financial Protection Bureau, U.S. Department of Housing and Urban Development and the U.S. Office of the Comptroller of the Currency.