A new report published today by the National Association of Real Estate Brokers (NAREB) shows that seven years after the start of the great depression Latino and African-American families continue to face financial instability. The continued financial hardship is attributed to the massive loss of wealth and assets tied to the housing market.
The “State of Housing in Black America” report shows that minorities have become more cut off from the housing market than ever before and that the economic recovery has not benefited many minorities. The lack of employment and asset loss has made it difficult for these families to obtain financing so they may once again be homeowners.
Latino and Black families were 70 percent more likely to have been foreclosed upon and often targeted for unregulated, high cost and unsustainable subprime loans.
Latinos households lost 66 percent of their net worth between 2005-2009.
The report makes several recommendations that include re-engineering the housing finance system in a manner that makes providing affordable mortgage credit its principal goal.