NFHTA Forum | Bridging the Racial Homeownership Gap: Special Purpose Credit Programs

Homeownership is the primary way American families build wealth and pass it on to the next generation. While the United States is known worldwide as the land of great opportunity, opportunities for homeownership have been deeply unequal in our country. Because of systemic discrimination in this nation's housing and credit markets, including by the federal government itself, homeownership rates are much lower for African Americans and other people of color than for their white counterparts. This was true in the 1960s before the Fair Housing Act became law, and it is even truer today.

The Equal Credit Opportunity Act (ECOA) recognized Special Purpose Credit Programs (SPCP) as one mechanism that financial institutions can use to open the door to homeownership for underserved populations who have historically been denied that opportunity. SPCPs provide a tailored way to meet special social needs and benefit economically disadvantaged groups, including groups that share a common characteristic such as race, national origin, or gender. SPCPs can play a critical role in promoting equity and inclusion, building wealth, and removing systemic barriers that have contributed to financial inequities, housing instability, and residential segregation. SPCPs are also consistent with and provide a targeted and effective way to further the purposes of other civil rights laws, including the Fair Housing Act's twin goals of overcoming discrimination and segregation.

The National Fair Housing Training Academy (NFHTA) hosted a public forum that provided information about the need for SPCPs; described how an SPCP works to expand access to credit, and advance equity; outlined HUD and Consumer Financial Protections Bureau (CFPB) guidance on SPCPs; and described the industry perspective on opportunities and challenges to implementing SPCPs. Over 614 fair housing partners joined in this conversation.

Overview

1. Welcome from moderator, Cashauna Hill, Executive Director at the Louisiana Fair Housing Action Center
2. Opening remarks by Demetria McCain, Principal Deputy Assistant Secretary, Office of Fair Housing and Equal Opportunity, HUD
3. Introduction of panelists:
• Sasha Samberg-Champion, Deputy General Counsel, Enforcement and Fair Housing, HUD
• Frank Vespa-Papaleo, Principal Deputy Fair Lending Director, Consumer Protection Financial Bureau
• Cerita Battles, Managing Director, Head of Community & Affordable Lending, JP Morgan Chase
4. Presentation and discussion by panelists on:
• HUD's Guidance on SPCPs
• HUD's legal opinion on SPCPs
• How SPCPs relates to fair housing practitioners' work
• How SPCPs affirmatively further fair housing
• CFPB's Guidance on SPCPs
• How SPCPs expand equitable access to credit
• How SPCPs promote racial and economic equity
• Opportunities and challenges of implementing SPCPs
• How SPCPs advance the goals of the Community Reinvestment Act
5. Question and answer session moderated by Ms. Hill

A video of the forum has been posted on this page, along with a transcript of the conversation and a robust resources list for your continued reference.