New path to homeownership
Kudos to Home HeadQuarters, the nonprofit housing organization based in Syracuse, for coming up with a novel way to finance home mortgages in neighborhoods being overlooked by traditional lenders.
The agency has made more than 200 loans to home buyers over the past three years, totaling $22.4 million. More than 60% of borrowers are African American, a demographic significantly underrepresented among homeowners in Onondaga County.
State officials point out that banks with billions in assets are making relatively few home loans in the city of Syracuse — and even fewer to borrowers of color.
Home HeadQuarters CEO Kerry Quaglia’s approach is not to bash the banks, but to make deals with them to buy the agency’s mortgages. The banks get Community Reinvestment Act credit for lending to minority and moderate-income borrowers. Home HeadQuarters gains access to the capital to make more loans. And people previously locked out of the housing market are able to purchase homes, grow personal wealth and stabilize neighborhoods.
Other housing agencies around the country are taking note — and making plans to replicate this ingenious strategy.
As for big banks and mortgage companies that don’t lend to minority borrowers — a modern version of redlining — you’re not off the hook. You can do better in underserved neighborhoods and communities.