New Initiatives Targeted Toward Closing Affordability Gap for Black, Latino Families
JPMorgan Chase is undertaking new initiatives aimed at helping close the housing affordability gap for Black and Latino families.
The New York City-based international banking company said it’s committing $400 million toward the five-year philanthropic effort, and will also implement new data-driven business practices and policy recommendations.
“We’re trying to address some of the barriers to affordable housing and homeownership to help provide family stability and build generational wealth for Black and Latinx families,”
Chairman and CEO Jamie Dimon said in a statement. “Whether you rent or own your home, more families deserve fair, sustainable and accessible options and businesses have a responsibility to develop housing solutions for those who lack access to opportunity.”
Similar efforts are underway at Bank of America, Citigroup Inc. and other large institutions. Citi expanded mortgage programs that provide help with down payments and closing costs after registering declines in mortgage applications and originations from Black and Latino families during the pandemic.
A report earlier this year from the National Association of Realtors found that Black homeownership rates were at 42 percent, while Latino homeownership was only slightly higher at 48 percent. These numbers lagged far behind white homeownership rates of 70 percent.
The $400 million in new commitments from JPMorgan Chase will go toward low-cost loans, equity and grants for nonprofits and other groups that work with Black and Latino households on issues of home affordability.
These efforts include programs designed to keep renters at risk of eviction in their homes, as well as emergency assistance and liquidity for affordable housing providers and landlords.
In its own business, JPMorgan Chase said it has hired more than 100 people to work as lending advisers in low- to moderate-income neighborhoods. The company plans to expand this team nationwide, it said.
JPMorgan Chase will also recommend a number of public policy changes aimed at promoting affordable options, assisting vulnerable renters and homeowners, and improving access to mortgages for people of color. A full list of these recommendations is available here.
These new measures are part of a $30 billion commitment JP Morgan Chase announced last year to help advance racial equity. To promote affordable housing and homeownership for underserved communities, the company pledged to:
- Commit $8 billion to originate an additional 40,000 home purchase loans for Black and Latino households.
- Provide $4 billion to help an additional 20,000 Black and Latino households refinance their mortgages to lower their monthly payments.
- Make $14 billion in loans and equity investments available to finance an additional 100,000 affordable rental units in underserved communities.
In February, Chase Bank announced it was expanding its Homebuyer Grant program, making grants of up to $5,000 available to qualified buyers in 6,700 communities identified by the Census Bureau as majority Black.