LOS ANGELES and SAN FRANCISCO, April 20 /PRNewswire/ -- The Federal
Home Loan Bank of San Francisco (FHLBSF) and Rep. Diane Watson (D-CA)
today met with local community leaders and residents to discuss ways
to improve access to credit for minority residents and communities in
the Los Angeles area. During their meeting, the lawmaker, community
leaders, and representatives from FHLBSF member banks discussed the
low homeownership rates among minorities, reasons some members of
African American and Latino communities sometimes have trouble
obtaining credit, and began developing new strategies to spur
homeownership and community development in the Los Angeles area.
Rep. Watson expressed concern about rising housing costs and low
homeownership rates among minorities. "The median cost of a home in
the Los Angeles area is $241,000 and that cost continues to rise,
pricing many of our residents out of the housing market. Only 36% of
Los Angeles area households can afford a median priced home." Rep.
Watson said. "The homeownership gap between whites and minorities
remains broad, as homeownership rates for African Americans, Latinos
and Whites are 48%, 49% and 72%, respectively. We must bridge this gap
by finding ways to spur homeownership among minorities."
Rep. Watson also noted, "Language and cultural barriers between
lenders and loan applicants exacerbates the difficulty in securing a
mortgage in some sectors of minority communities, particularly the
Latino community. Local financial institutions must find ways to reach
out to and better serve the growing minority customer base."
Recent census data cites Latinos and African Americans as the
largest minority groups in the U.S. In Rep. Watson's district, these
groups comprise 70% of the population. Thus, there is a new awareness
towards ensuring that Latino and African American residents and
businesses are receiving the proper amount of credit.
Noting the connection between homeownership and community
development, Dwight Alexander, a vice president at the FHLBSF, said,
"We know that homeownership is the foundation of community
development. To foster healthier communities and continue to meet the
diverse needs of Los Angeles area residents, we must remember that
access to credit is what builds and strengthens communities. This
discussion helped us all focus on a common goal: supporting and
sustaining livable neighborhoods and communities. Through partnerships
with the FHLBSF, local institutions can provide affordable housing and
invest in the future of the Los Angeles area."
About the Federal Home Loan Bank of San Francisco
FHLBSF delivers low-cost funding and other services that help
member financial institutions make home mortgages to people of all
income levels and provide credit that builds neighborhoods and
communities. As of December 2001, the FHLBSF had $102 billion in
outstanding loans to its members. The FHLBSF also funds community
investment programs that help members create affordable housing,
promote community economic development, and foster partnerships among
lenders, housing developers, community organizations, and government
agencies. With $135 billion in assets, the FHLBSF is the largest of
the 12 banks in the Federal Home Loan Bank System. It serves and is
owned by 307 commercial banks, savings institutions, credit unions,
and thrift and loan companies headquartered in Arizona, California,
and Nevada.
Source: Federal Home Loan Bank of San
Francisco
Contact: Trista Hargrove, +1-202-973-2928, for Federal Home Loan
Bank of
San Francisco
Website:
http://www.fhlbsf.com/
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