Regarding Foreclosures Among Minorities

Floor Speech

Mr. DAVIS of Illinois. Mr. Speaker, homeownership can be the passage to the American dream. It can help offer wealth and even tax credit to American citizens. Nonetheless homeownership can also bring great economic devastation. While we were back in our districts, it was reported that there has been an increasing epidemic of foreclosures, especially among working-class neighborhoods. Even more, wide disparity between the rate of white homeowners and members of ethnic minority groups continue to exist. These foreclosures have fallen particularly hard on black and Latino families. As citizens face low interest rates and the pressure to refinance, an escalating number of citizens have found themselves unable to take on their mortgage debt. This past March, 47 states experienced a rise in foreclosure rates, and today, more then eight percent of homeowners spend at least half of their income on their mortgage. These numbers are appalling.
A recent study in Chicago found that rising foreclosures fuel increases in crime rates. So, not only does this affect our economic structure, but our security in society. Homeownership, especially among minorities, should not lead to economic and social ruin. In my district, just 37 percent of African-Americans own homes of their own. That's below the average for the city as a whole and falls far short of the national homeownership rate of 68 percent. Chicago should thrive off its bustling economic and cultural prospects, not be brought d own because the citizens cannot afford to prosper.

In fact, there have been measures taken to counteract this declining trend. Recently, the Administration announced a goal to increase homeownership among minorities by 5.5 million households before the end of the decade through various programs such as American Dream Down-Payment Initiative. Nonetheless, the trends continue to move downward. Rising interest rates and discrimination continue to hinder homeownership among minorities. Minorities, especiall y African Americans, have experienced a significant disadvantage in terms of wealth creation. While sustaining the cost of housing provides great difficulty, many citizens cannot even find jobs before aspiring to finance homeownership. Before the Administration can help minorities increase homeownership, it must first give the citizens job opportunities substantial enough to afford housing. Homeownership is a measure of financial security, and without the means to obtain such security, the number of homeowners will continue to drop.

We cannot disregard the efforts of minorities to succeed in obtaining the American dream. Minorities deserve equal opportunity to homeownership. Therefore, I urge my fellow colleagues to raise awareness against the devastation of foreclosure.

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