In a recent report released by New York Attorney General Letitia James, profound racial disparities in homeownership and access to home financing in New York have been brought to light. The explicit data states Black and Latino New Yorkers are “underrepresented” among mortgage applicants, with white households showing significantly higher rates of ownership compared to Black, Latino, or Asian households. With housing being a crucial part of the American Dream, such disparities pose a serious challenge to equality in the state.
The lawyer firm of Orrick, Herrington & Sutcliffe LLP delves into the report, part of a broader national conversation about continuing racial disparities in mortgage financing.
While the findings of the report are alarming, they are not entirely unexpected. These findings echo the realities found nationally, with a 2016 Harvard University study indicating that New York is not an outlier but reflective of the national landscape. Similar trends of understated or even declining homeownership rates among minority communities compared to white communities have been documented extensively.
Instead of viewing this report as an end in itself, we need to interpret it as a stepping stone towards potential solutions. If policy makers and the crucial stakeholders work together in response to this report, we hold the potential to rectify these disparities.
As legal professionals, corporates, and investors, it becomes our responsibility to respond inclusively and equitably, beyond just being aware. Posing potential solutions or challenging unjust policies can go a long way to address systemic imbalances. Capitalizing on this opportunity to enact change can foster the bigger picture—the American Dream for all.