WASHINGTON, March 23 – Biden officials on Wednesday announced new measures to reduce U.S. housing inspectors who perpetuate building inequality by offering lower housing prices to Black and Latino homeowners.
Mortgage finance agency Freddie Mac (FMCC.PK) found in 2021 that black and Latin people are more likely to have their homes valued less than the agreed sale price than white real estate agents.
Such estimates could limit the size of the mortgage loan, forcing homeowners to sell at a lower price or cancel a sale altogether. It may also reduce the amount available at the time of refund.
“Prejudice on domestic prices reduces the ability of black and black families to enjoy the financial benefits associated with owning a home, thus contributing to the already widening gap in racial wealth,” the White House said in a statement accompanying its new plan.
Senior management officials said the aim was to strengthen inspection standards, increase diversity of staff assigned to create those standards and make it easier to report discrimination that violates state law.
The Acting Director of the Federal Housing Finance Agency, Sandra Thompson, praised the road map, saying her organization “does not tolerate housing discrimination” and will remain focused on ensuring effective lending mechanisms.
“Because their homes are less important, black and Latin people tend to pay more, earn less when they sell their homes, and have less access to credit,” said Deputy President Kamala Harris at the White House. event to reveal effort.
Government officials say the low ratings have contributed to widening gaps between blacks and Latin Americans and their white peers. White applicants received appraisals lower than their contract sales price of 6.5% of the time, compared to 9.5% for Latino and 8.6% for black applications, Freddie Mac found.
Last June, Joe Biden became the first American president to reside in Tulsa, Oklahoma, where hundreds of black Americans were murdered by a white mob in 1921, vowing in his speech that he would fight racism in the home and face biased housing inspections.