The Hill, March 17, 2021, ‘New’ tech lending: Opening financial products to underserved communities
Like most Americans across the country, the Latino community and communities of color are ready to move on from the economic devastation of the COVID-19 pandemic. However, as the media has consistently reported, communities of color have felt the brunt of the pandemic and need immediate access to stimulus assistance and emergency financing.
An Urban Institute report pointed out, “Hispanics are the fastest-growing U.S. demographic… accounting for 40.4 percent of growth in household formation” over the past 10 years. During the same time period, nearly 52 percent of homeowners in the U.S. were Hispanic. And, prior to the pandemic, a report from the National Community Reinvestment Coalition indicated that Latinos primarily sought loans to buy homes yet were underserved by banks.
The pandemic has disproportionately impacted the Latino economic health and the community will need public and private sector solutions to regain its economic stability. The goal after the pandemic is not just to avoid a housing crisis, but to expand financing option availability and eliminate mortgage financing disparities.