In the New York Times Lisa Prevost referenced PPI Senior Fellow Jason R. Gold’s proposal to mitigate the inequitable access to loans in the conventional market between minority applicants and nonminority applicants.
The statistics show that Black and Hispanic applicants are far more likely to be turned down and that they are opting for F.H.A. loans that can prove expensive because of the high mortgage insurance premiums. This situation leads to a problematic dual housing market based on racial and ethnic groups. Before the need of a broadening of the lower-down-payment availability, Gold suggested the creation of HomeK accounts. This system would enable workers to single out up to 50 percent of their contributions from a retirement account into this HomeK account:
The HomeK accounts would give workers the option of using up to half of their contributions to 401(k) retirement savings for a down payment on their first home.
Read the entire New York Times article here.
