Nationwide, African Americans are homeowners at a rate of 47.2 percent, compared to 75.2 percent for individuals who identify as non-Hispanic white, according to a newly released report from the NAACP.

The Black homeownership rate declined by nearly two percentage points between 2004 and 2007, however, African American homeowners lost their houses as predatory lending practices helped to spark a mortgage meltdown.

Monique W. Morris, the NAACP’s national director for research, authored the report, which found that subprime lending is five times more prevalent in African American neighborhoods than in white neighborhoods. A recent study by Freddie Mac reveals that one in five subprime loan recipients qualified for a lower interest rate. These practices have placed at least one million African Americans and other people of color at great risk of loss of wealth—an estimated loss of at least $164 billion, the report says.

The report, titled Discrimination and Mortgage Lending in America” is available at http://www.naacp.org/about/resources/reports/Lending_Discrimination_Campaign_Document_Edited_FINAL.pdf

Foreclosure spikes, yet again

RealtyTrac, a company that tracks foreclosure activities, reported that foreclosure filings were 46 percent higher in March 2009 than a year ago, as temporary freezes and moratoriums declared by banks came to an end. The massive housing stimulus announced on March 6 by President Barack Obama has not had a chance to take effect, officials said.

Filings, which include notice of default, auction sale or bank repossession, jumped 17 percent in March from February. Homeowners who are having trouble paying their monthly mortgage are encouraged to visit makinghomeaffordable.gov to determine if they are among the 9 million expected to benefit from Obama’s plan.

Refuse to be a victim

Many disreputable companies and individuals are victimizing homeowners in foreclosure by charging them huge upfront fees, and then failing to deliver any real assistance. Last week, the Obama Administration announced a coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams. 

The scams and predatory counseling groups may drain the limited resources of homeowners, and in some cases, cost them their homes.

The anti-foreclosure fraud task force includes federal law enforcement agencies, state investigators and prosecutors, civil enforcement authorities, and the private sector. In addition, the U.S. Department of the Treasury, the U.S. Department of Justice (DOJ), the Department of Housing and Urban Development (HUD), the Federal Trade Commission (FTC), and the Attorney General of Illinois will coordinate information and resources across agencies so they can better assist one another’s fraud investigations, alert financial institutions to emerging schemes, step up enforcement actions and keep consumers up-to-date regarding the latest scams.  

The best way to avoid foreclosure scams is to use a HUD-approved housing counseling agency. You can find the full list at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm