[Congressional Record Volume 151, Number 76 (Thursday, June 9, 2005)]
[Extensions of Remarks]
[Pages E1183-E1184]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                REGARDING FORECLOSURES AMONG MINORITIES

                                 ______
                                 

                          HON. DANNY K. DAVIS

                              of illinois

                    in the house of representatives

                         Thursday, June 9, 2005

  Mr. DAVIS of Illinois. Mr. Speaker, homeownership can be the passage 
to the American dream. It can help offer wealth and even tax credit to 
American citizens. Nonetheless homeownership can also bring great 
economic devastation. While we were back in our districts, it was 
reported that there has been an increasing epidemic of foreclosures, 
especially among working-class neighborhoods. Even more, wide disparity 
between the rate of white homeowners and members of ethnic minority 
groups continue to exist. These foreclosures have fallen particularly 
hard on black and Latino families. As citizens face low interest rates 
and the pressure to refinance, an escalating number of citizens have 
found themselves unable to take on their mortgage debt. This past 
March, 47 states experienced a rise in foreclosure rates, and today, 
more then eight percent of homeowners spend at least half of their 
income on their mortgage. These numbers are appalling.
  A recent study in Chicago found that rising foreclosures fuel 
increases in crime rates. So, not only does this affect our economic 
structure, but our security in society. Homeownership, especially among 
minorities, should not lead to economic and social ruin. In my 
district, just 37 percent of African-Americans own homes of their own. 
That's below the average for the city as a whole and falls far short of 
the national homeownership rate of 68 percent. Chicago should thrive 
off its bustling economic and cultural prospects, not be brought down 
because the citizens cannot afford to prosper.
  In fact, there have been measures taken to counteract this declining 
trend. Recently, the Administration announced a goal to increase 
homeownership among minorities by 5.5 million households before the end 
of the decade through various programs such as American Dream Down-
Payment Initiative. Nonetheless, the trends continue to move downward. 
Rising interest rates and discrimination continue to hinder 
homeownership among minorities. Minorities, especially African 
Americans, have experienced a significant disadvantage in terms of 
wealth creation. While sustaining the cost of housing provides great 
difficulty, many citizens cannot even find jobs before aspiring to 
finance homeownership. Before the Administration can help minorities 
increase homeownership, it must first give the citizens job

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opportunities substantial enough to afford housing. Homeownership is a 
measure of financial security, and without the means to obtain such 
security, the number of homeowners will continue to drop.
  We cannot disregard the efforts of minorities to succeed in obtaining 
the American dream. Minorities deserve equal opportunity to 
homeownership. Therefore, I urge my fellow colleagues to raise 
awareness against the devastation of foreclosure.

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