Politico, August 31, 2023, How Biden’s Goal To Boost Black Homeownership Could Be Undone By A New Mortgage Rule
The Federal Reserve is seeking to tighten the rules on the kind of cheap mortgages that sparked the 2008 housing meltdown, but its proposal could hit Black and Hispanic borrowers hardest — and civil rights advocates are teaming up with big banks to fight it.
“I’m not sure this will crush mortgage origination — I think that’s a little overblown — but I do have a concern about portfolio lending to higher [loan-to-value] borrowers,” said Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition. “I’m concerned about loans made under [Community Reinvestment Act] programs, special purpose credit programs — it will have an impact on banks’ ability to do unique and innovative things and not be punished for that by the regulators,” he added.
