Julián for the Future
For Immediate Release: Wednesday, June 19, 2019
Contact: Sawyer Hackett
Julián Castro Releases
Plan to Boost Homeownership and Hold Wall Street Accountable
Part three of
People First Housing platform focuses on
increasing access to homeownership and reducing predatory mortgage
practices
SAN ANTONIO, TX (June 19, 2019) – On Wednesday, June 19, presidential
candidate and former U.S. Department of Housing and Urban Development
(HUD) Secretary under President Obama and San Antonio
Mayor, Julián Castro, unveiled the final
part
of
his
People
First
Housing
platform to spur
homeownership, boost access to credit, and improve oversight and
regulation of Wall Street's housing practices.
Secretary Castro released part
one
of
People
First
Housing on Monday, June 17 to solve the
affordable housing crisis and end homelessness in the United States. On
Tuesday, June 18, Secretary Castro unveiled part
two
of
People
First
Housing to eliminate discrimination in
housing, desegregate neighborhoods, prevent gentrification of
revitalizing communities, and ensure our housing practices align with
our climate goals. Part
three is the final component of Secretary Castro's
groundbreaking People First Housing platform—the first comprehensive
housing platform in the 2020 field.
"Homeownership is a critical part of the American Dream. Owning a home
increases opportunity, spurs intergenerational wealth, and provides
millions of Americans with a sense of community and belonging. However,
stagnant wages, limited access to credit, and economic uncertainty from
from the Great Recession has put the dream of owning a home out of
reach for too many," said Secretary
Julián Castro.
"Today I'm
putting forward the final component of my People First Housing platform
to help more families realize the dream of homeownership and to boost
accountability, transparency, and oversight of Wall Street's housing
practices to ensure more families can stay in their homes."
Part
three of the People First Housing platform can be viewed
here and below:
People First Housing Platform
Part III: Boost Homeownership and Hold Wall Street Accountable
Part of the American Dream is to own a home — a place where we raise
our kids and make meals, where we study and relax, and where we gather
for celebrations and find comfort amongst family members. Owning a home
not only opens the doors of opportunity, it spurs intergenerational
wealth and provides millions of Americans with a sense of community and
belonging.
But for far too many, the dream of owning a home has been out of reach.
Stagnant wages, limited access to credit, and economic uncertainty
stemming from the Great Recession has made homeownership more and more
difficult for millions of Americans. Families across the country are
doubling up in relatives’ homes, college graduates are returning home
to live with their parents, and the increasing cost of rental housing
is keeping families stuck in a cycle.
As HUD Secretary under President Obama, we worked everyday to help more
Americans realize their dream of homeownership, and to ensure those who
are struggling to pay their mortgages could stay in their homes. But we
can do more. My plan would help more families get the credit they need
to mortgage a home, would provide support for those who are housing
insecure, would increase homeownership and rental literacy, and boost
accountability, transparency, and oversight of Wall Street's housing
practices to ensure more families can stay in their homes.
Increase Homeownership
Homeownership increases intergenerational wealth and economic mobility
— in other words, it’s good for our economy. Encouraging
responsible borrowers to become homeowners by reducing the barriers to
homeownership is particularly impactful for communities of color, young
people, and others who have historically been locked out of this
critical economic opportunity. I want more folks to have that
opportunity. Here’s how I would increase homeownership:
Establish a National Housing
Stabilization Fund, jointly operated by the Department of
Housing and
Urban Development and the Department of Health and Human Services, to
provide support for individuals who are experiencing housing
insecurity, including managing small expenses that put them at risk for
foreclosure.
Make credit more accessible
and reduce the number of “credit invisible” would-be borrowers by:
requiring issuers of
FHA-backed mortgages to account for a greater variety of indicators
when assessing creditworthiness, including crediting on-time
payments
for rent, cell phone payments, utilities, student loans, and other
transactions prioritized by low-income individuals and families.
Work with financial
institutions to expand access in under-served communities, including
minority and rural communities.
Reduce premiums for
FHA-backed mortgages to boost access to affordable
mortgages and
make homeownership more affordable.
Reserve up to 10% of the
National Housing Trust Fund towards down-payment assistance for
prospective
low-income
first-time
home
buyers.
Encourage homeownership
under the Renters Tax Credit by allowing credits to be
placed in
tax-advantaged savings accounts for down payments, helping close the
racial wealth and homeownership gap.
Support housing counseling,
renter education, and financial literacy programs that are
proven
to help homebuyers, homeowners and renters keep more money in their
pockets.
Hold Wall Street Accountable
Defend and rebuild the
Consumer Financial Protection Bureau (CFPB), preserving its
independence and expanding its ability to protect the rights of
consumers and conduct oversight of banks, payday lenders, and other
financial institutions in a transparent and effective manner.
Restore the enforcement
and oversight powers of Office of Fair Lending and Opportunity within
the CFPB
Reopen the Office for
Students and Young Consumers to protect young individuals,
including students.
Provide maximum
transparency for the Consumer Complaint Database, allowing
the
public to utilize the database to better understand the behavior of
financial institutions
Support reforms to the
housing finance system, including Fannie Mae and Freddie Mac, that
reinforce
their
mission
to
support
housing opportunities for low and
moderate income and minority communities while protecting taxpayers and
the economy.
Ensure any distressed
mortgages that need to be sold are placed in the hands of
mission-driven non-profits with a track record of working in
communities, passing
legislation to enable these non-profits to receive a discount on these
mortgages, requiring purchasers of these mortgages to retain the terms
and protections of the original loan, and prioritizing principal
reduction during any sale.
Strengthen the Department of
Justice’s independence and ability to hold banks and bankers
accountable for
violations of the law, including civil rights violations, to ensure
high standards of accountability, transparency, and actions by
financial institutions.
Direct the Securities and
Exchange Commission to publish information from large private funds,
including
Real
Estate
Investment
Trusts,
and other firms that are
involved in the real estate market on their portfolios and impact on
communities they are active in, including on increased housing costs
and impact on vulnerable communities including senior citizens,
minorities, and families in poverty.
***
About Secretary Julián Castro
Julián Castro served as U.S. Secretary of Housing and Urban
Development under President Barack Obama from 2014-2017. Before that,
he was Mayor of his native San Antonio, Texas — the youngest mayor of a
Top 50 American city at the time. In 2012, he gave a rousing keynote
speech at the Democratic National Convention, during which he described
the American Dream as a relay to be passed from generation to
generation. Most recently, Castro founded Opportunity First,
an organization to invest in the next generation of progressive
leaders. In October 2018, Little, Brown published Castro’s
memoir, An Unlikely Journey: Waking Up from My American Dream.
Follow Julián Castro on Twitter, Facebook and Instagram. JulianfortheFuture.com and Julianparaelfuturo.com.
