NCRC Reacts to Reduction in FHA Premiums

Washington, DC – Today, in reaction to President Obama’s announcement that the Federal Housing Administration (FHA) will lower mortgage insurance premiums by 0.5 percentage points for FHA loans, NCRC President and CEO John Taylor made the following statement:

“We applaud President Obama for this positive step, which will be beneficial to working families striving to climb the economic ladder. Throughout its history, FHA has played a key role in helping working people to access homeownership and build wealth through equity. This reduction in FHA mortgage insurance premiums will serve to help make homeownership more affordable and attainable for many families. We are pleased that the administration is showing a commitment to homeownership opportunity.”

“Unfortunately, the administration has not yet eliminated the requirement that most FHA borrowers pay for mortgage insurance for the life of the loan. Typically for conventional loans, when borrowers reach a 20% equity threshold, they have the ability to cancel their mortgage insurance. For most FHA borrowers, this option does not exist. This unfair policy for FHA borrowers ultimately amounts to a poor tax. We call on the administration to end this recent practice.”

“In order stimulate the housing market and ensure broad access for creditworthy borrowers it is also critically important for the Federal Housing Finance Agency to reduce excessive guarantee fees and loan level price adjustments at Fannie Mae and Freddie Mac.”

About the National Community Reinvestment Coalition (NCRC): The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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