by Alex Chaparro

By day, I’m a real estate broker in Chicago where I specialize in REO listings. Like those of you who are also working in this space, part of what comes with the job is often the unpleasant task of advising delinquent homeowners that it’s time to leave their homes. The offer: financial incentives for relocation or more commonly known as “cash for keys.”

This week during one of those visits I encountered a Latino homeowner, who emphatically claimed that he had hired a “professional” firm to negotiate a loan modification for him after the foreclosure sale. I knew from the paperwork I had in hand that it was too late for any modification to help this client save his home. The trouble was that he had paid a firm $1,500 cash to help him. They promised him they would save his family’s home.

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by Gail Buck

For anyone who lives outside Arizona, the state’s controversial immigration law is probably just a current event that gets debated over drinks with friends. Unless you’ve been subjected to prejudice for who you are, this is a subject that’s easy to dismiss with all the other bad things that are happening in the world today.

It’s a different story for Latinos living in Arizona, however. Long before Governor Brewer signed the immigration law, the air of fear and bigotry toward Latinos existed. The now infamous Sheriff Joe Arpaio and his posse of vigilantes have seen to that. The culture of prejudice these people have created here is something you don’t ever want to experience in your hometown. Trust me on this. The new law has only emboldened them and licensed their actions. Any dark skinned person here is fair game.

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By Alejandro Becerra

Over a year ago, the nation’s housing sector and economy nearly collapsed. Since then, the Administration and Congress have taken significant steps to avert a deeper recession, stabilize home prices, and ignite the nation’s economic recovery. Record-low interest rates, rock-bottom home prices and a large housing inventory put homeownership well within the reach of thousands of home buyers. A new wave of foreclosures, boarded-up homes and blighted communities, however, threatens to reverse recent economic gains and increased home sales.

The recent decline in home values has already cost American homeowners $4 trillion in equity. The high loss of jobs, heavy household debt, and low income growth among millions of Americans has stalled significant economic progress.  At the same time, reluctance to effectively help many troubled mortgage borrowers who are erroneously believed to have acted irresponsibly continues to hamper government efforts to fully resolve the housing crisis.  We won’t revitalize the housing sector successfully until we dispel the myths about what created this crisis.

Myth #1: The bulk of subprime loans were made to irresponsible borrowers who knew they could not afford the homes they bought.

This statement is substantially incorrect. The Wall Street Journal has reported that 55% or more of all borrowers who obtained subprime loans in recent years could have qualified for less expensive conventional loans. Some reports have also shown that minority borrowers were more likely to get risky and higher-cost loans even if many of them qualified for prime mortgages.

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Last month I had the privilege to offer testimony to a joint hearing of the Subcommittee on Housing and Community Opportunity and the Subcommittee on Oversight and Investigations on the ability of minority small businesses to gain access to government contracting opportunities in the areas of housing and financial services. Take a moment to check out the comments I offered to Subcommittee Chair Maxine Waters and others: http://tinyurl.com/2doyx6a

Historically, minority businesses have been on the outside of this process looking in, particularly as it applies to the complex federal government procurement process. Truth be told, most minority small businesses lack the expertise and human capital necessary to navigate this process. So we’ve stood by and watched as others have gotten the business. But the world of government contracts isn’t the only area we’ve missed out on; we’ve missed out on other business opportunities too.

Despite the fact that minority neighborhoods were broadly impacted in the foreclosure crisis, Hispanic-owned firm Read the rest of this entry »

By Alex Chaparro

Racial profiling has an ugly history. Humankind’s darkest moments have been incited by fear, ignorance and racial hatred. Is it any wonder then that the spirit behind Arizona’s new immigration law (SB 1070) has incensed Hispanic America?

With one broad stroke, the new law has made all of Arizona’s Hispanic residents, which number 30 percent of the state’s population, a potential target. Illegal aliens come in all sizes, shapes and skin color because they hail from all corners of the world. But, for purposes of this fear-driven campaign, “aliens” are Mexican-looking people, which is a problem for American citizens that match that description.

Nothing about this law will solve the complex problem of immigration reform. But the audacity of it can and should galvanize the voice of people of color. Already thousands of Latinos have taken to the streets in protest. The nation’s Hispanic leaders are speaking out against the bill and joining forces in protest against it — and with good reason. The authors of Arizona’s bill would like us to think that this is just the state’s way to make up for the federal government’s failings on the issue. Make no mistake, my friends, this is licensed racism that has given anti-immigrant factions a pulpit to intimidate Latinos while doing nothing really to tackle the true problem.

“Police state” tactics will do nothing more than incite more anger, fear and hatred.

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by Alejandro Becerra

The buying power of minority homebuyers is expected to help fuel a thriving housing economy, especially if reinforced by government initiatives geared towards mortgage ready individuals and families. Although the economic crisis has masked their significance, minority homebuyers will continue to affect the market tremendously.

Overall, lower housing values, a large housing inventory, and historically low interest rates put the potential for homeownership well within the reach of minority buyers. Some housing experts are predicting that the sheer population size of minorities is considered large enough to absorb the increasing housing inventory now being vacated in the market.

The financial sector should now make loans the right way by providing borrowers with reasonable loan terms and conditions, affordable down-payments, counseling and homeownership assistance for eligible borrowers. If mortgage ready minority homebuyers are reached effectively with affordable loans, they can achieve sustainable homeownership and reinvigorate the housing sector.

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Much has been said about the housing crisis and the tales of personal tragedy. After all, it’s easy to focus on the bad when there’s so much negative to go around. But with challenges also come silver linings. With despair comes compassion. With crisis comes strength and unity.

The unified strength of the 700 Hispanic, Asian and African American real estate professionals that gathered at the 2010 Multicultural Real Estate & Policy Conference in Washington, D.C. two weeks ago was undeniable. NAHREP, AREAA and NAREB members have joined forces before, but never in this way. The mood was electric. The energy was palpable. And the message was unmistakably clear: We will not let communities of color perish in this housing debacle.

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By Tino Diaz, NAHREP Chair
New regulations alone won’t heal what broke our real estate market. Lawmakers can’t legislate character and integrity. The only real cure that will make a difference now in the housing recovery is our own deeds and a renewed commitment to ethics and good business practices. The buck stops with us, NAHREP practitioners.

Let’s be honest: We are in this economic mess because too many people lost their moral rudder. When the common good takes a back seat to self-interest, the equilibrium of our free market system gets thrown off and the market crashes.  This is exactly what happened in the foreclosure crisis. Too many people were eager to make a profit at the expense of others without regard for the consequence of their actions. Now we’re all paying the price. Read the rest of this entry »