There has been little change in homeownership rates for black families in 50 years, which is why some lenders are rethinking their practices to make buying a home a reality rather than a dream.
Studies show a 20-30% gap between black and white homeownership rates has persisted for more than 100 years, despite the increase in black homeownership in the mid-1900s. Among the many today’s causes include credit scores average around 649 for 60% of African Americans.
Jonathan Leysath, Jacksonville branch manager for Self-Help Credit Union, said they’ve adjusted their mortgage products to help increase equity in the loan process and be more lenient with buyers with credit issues. .
“The Equity Boost product can go down to a credit score of 580 with only a minimum borrower investment as low as 1%,” Leysath explained. “As opposed to the FHA, which is 3.5%.”
Leysath argued that flexibility is important because many factors continue to block the economic progress of blacks. They understand the negative economic effects of the pandemic and the burden of heavy student debt, which disproportionately affects people of color.
Another possible solution to enhance equity is for more financial institutions to offer similar programs to help people access more resources.
Self-Help Credit Union‘s executive vice president of communications, development, policy and impact, Crystal German, said finances often fuel discussions about disparity and wealth. She emphasized that their goal is to create innovative and holistic programs to help people of color build wealth through homeownership.
“I mean, it’s about having a freedom,” German pointed out. “And it may not be physical freedom, but it is a financial freedom that allows people to live their best life.”
The Fair Housing Act passed in 1968, prohibiting anyone from being discriminated against when renting or buying a home. Before civil rights legislation, many black families did not have the opportunity to create generational wealth by buying a home and passing it on to their children.
Disclosure: Self-Help Credit Union contributes to our fund for consumer, environmental, health and social justice reporting. If you would like to help support news in the public interest, click here.
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U.S. Food and Drug Administration (FDA) issues Hundreds of recall notices for potentially dangerous food products every year, but consumer advocates say too few of them are reaching grocery store customers.
The United States Centers for Disease Control and Prevention (CDC) reported one in six Americans are ill every year with food-borne illnesses.
It’s up to the FDA and grocery stores to notify shoppers of recalls, but a new study found that it does not work very well.
Teresa Murray, consumer watchdog for the Arizona Public Research Interest Group Education Fund, said the current system often leaves shoppers in the dark.
“Right now it’s a hodgepodge,” Murray said. “Part of the blame rests on the shoulders of grocery stores, part on the FDA, and frankly, part on consumers, who need to do more to make sure they are informed.”
Murry pointed out that when recall notices don’t get people’s attention, there can be serious consequences. CDC data show that each year, 128,000 Americans are hospitalized and 3,000 die from foods of food.
While many merchants in Arizona and elsewhere say they post recall notices in their stores, Murray noted that a growing number of supermarket chains are using “loyalty card” data to send notices directly to customers. . She said until the system improves, buyers need to be more proactive.
“If you have one or two grocery stores that you frequent the most, stop at the customer service counter and say, ‘Hey, you know, I’ve been shopping here for years. I have my buyer’s card, and what do you guys do to notify buyers when there’s been a recall? ” urged Murray.
Murray added that the report found that the FDA’s current requirements for issuing recall notices are poorly enforced and that more retailers need to use their technology and customer data to send notices directly to consumers.
“About half of the stores we surveyed do very well at contacting customers based on their transactions, based on the products they actually purchased,” Murray pointed out.
Disclosure: Arizona PIRG Education Fund contributes to our fund for reporting on policy and budget priorities, consumer issues, energy policy, and urban/transportation planning. If you would like to help support news in the public interest, click here.
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A bill just introduced in the U.S. House of Representatives aims to give consumers a boost as they combat inaccuracies in their credit reports.
House resolution 7919 would remove a loophole in the Fair Credit Reporting Actwhich allows credit grantors and debt collectors to ignore correspondence sent on a consumer’s behalf by a credit repair company or nonprofit community organization.
Michael Claunch, a lobbyist who represents customers in the credit repair industry, said consumers should be able to get help navigating a complex system.
“Removing this opt-out provision is an important first step to increasing transparency and increasing responsiveness to consumers who need help in this area,” Claunch said.
It is expected that opponents maintain that their current practices are legal and that the change would create an unnecessary burden on their field.
Andre Chapple, pastor of Faith Church, who organizes financial education workshops, said that bad credit can interfere with parents’ ability to find a job or move their children in a safer area.
“People who want to leave unsafe neighborhoods but contain inaccuracies and outdated material that lower their credit score are being denied,” Chapple observed. “It just makes things more difficult for those who already have trouble. And it’s already quite difficult. Let’s do something different.”
Esteban Nunez, chief strategy consultant for the Anti-Recidivist Coalition, said people trying to rebuild their lives after spending time behind bars are particularly vulnerable if they have bad credit or no credit history.
“We are compounding layer after layer after layer of barriers,” Nunez asserted. “It’s incredibly difficult for people to find housing and jobs because they have no credit.”
A recent report of the Consumer Financial Protection Bureau found that 98% of the time, the big three credit reporting agencies fail to provide relief to people who complain about errors in their credit reports.
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The cost of going out of town this Memorial Day weekend will be higher than in previous years, with gas price and inflation hitting travellers. However, many Montana residents will still leave the city.
The average gasoline price per gallon in Montana is $4.38, slightly lower than the national average of $4.60, but still a state record high.
Aldo Vazquez, spokesperson for AAA Montana, said people wanted to get away from home this weekend.
“It really is has no impact their desire to travel a lot,” Vazquez reported. “We are seeing an increase in travel across the board – 39 million people will be traveling across the country for the Memorial Day holiday. That’s three million more than last year.”
Although the numbers are up from last year, Vazquez noted that they are not at pre-pandemic levels and are more in line with 2017 numbers.
Vazquez pointed out that there are ways to save money, like making sure your tires are fully inflated and avoiding stops and starts, which burn gas faster.
“If you can avoid these hours between 1 p.m. and 8 p.m. and maybe go sooner in the morning or later at night,” advised Vazquez. “Not only are you going to save a little more on gas, but you can also save a lot of headaches and stress from being stuck in traffic and getting to your destination more easily.”
For people traveling by air, Vazquez suggested passengers arrive at the airport early. He noted that staff shortages have led to more flight cancellations than usual, a trend in progress since last year.
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