The Association for Neighborhood & Housing Development (ANHD) said these groups have a hard time finding credit to purchase a home, plus there is a distinct lack of affordable housing. The percentage of low-to-moderate income groups who obtained home purchase loans fell from 7.5 percent in 2013 to 7.2 percent in 2014, the last year for which data is available.
The number of home-purchase loans made by the four largest banks fell from 50 percent in 2011 to 45 percent in 2014.
Additionally, non-bank lenders who are not required to abide by the Community Reinvestment Act (CRA) are getting a larger portion of the lending market. In 2011, 23 percent of all home-purchase loans were made by non-CRA members, a number that grew to 30 percent in 2014.
Although 22 percent of New Yorkers are Afro-American, only 8.7 percent of home purchase loans were for Afro-Americans. Similarly, 8.4 percent of home purchase loans went to Latinos, who comprise 29 percent of New Yorkers.
The ANHD is urging regulators and elected officials to develop a plan for increasing the stock of affordable housing, and provide counseling services and financial assistance. ##
(Photo credit: shutterstock–New York City Street)
