JPMorgan Chase Strengthens Commitment to Close the Housing Affordability Gap for Black and Latin Households
NEW YORK–(COMMERCIAL THREAD) – Today, JPMorgan Chase announced new measures to close the housing affordability gap as part of its $ 30 billion pledge to help advance racial equity and foster an inclusive recovery. By combining its unique set of business, data, policy and philanthropic resources, the company aims to improve housing affordability and stability as well as homeownership opportunities for black and Latin households. This includes:
- Address housing stability, affordability and wealth creation: A five-year, $ 400 million philanthropic commitment that includes low-cost loans, equity and grants to nonprofits and affordable housing organizations working to improve affordability and stability of black and Latin households;
- Create more pathways to affordable and sustainable home ownership: New role of Chase Community Home Lending Advisor to help more people on the path to homeownership, and actively engage with industry partners and regulators to find ways to close the gaps in the residential assessment process;
- Make data-driven policy recommendations: The JPMorgan Chase PoliticsThe Center will partner with policy makers and community leaders to advance data and evidence-based solutions to address housing challenges.
“We’re trying to overcome some of the barriers to affordable housing and homeownership to help ensure family stability and build generational wealth for black and Latin families,” said Jamie Dimon, CEO of JPMorgan Chase & Co. “Whether you rent or own your home, more families deserve fair, sustainable and accessible options and businesses have a responsibility to develop housing solutions for those without access to opportunities.
1. Address housing stability, affordability and wealth creation
JPMorgan Chase’s five-year, $ 400 million philanthropic pledge will help tackle the housing crisis for black and Latin households. The company will launch new housing initiatives to advance affordability and stability in underserved communities across the United States:
Work with the Urban Institute identify, test and scale innovative affordable housing solutions, such as eviction prevention programs and ways to fill assessment gaps, to better serve Black and Latin households;
Collaborate with Community investment center at the Lincoln Institute of Land Policy to advance solutions such as preserving the affordability of existing homes and expanding community ownership models in Chicago, Washington DC, Los Angeles, Miami, New Orleans and Seattle.
Due to the economic crisis resulting from the COVID-19 pandemic, there is a critical need to help stabilize housing for black, Latin and other households of color. JPMorgan Chase:
Provide philanthropic support to non-profit organizations that fund foreclosure and eviction programs such as emergency financial assistance, rental repayment plans and negotiation support;
Provide liquidity – including emergency financial assistance – to affordable non-profit housing providers and small homeowners facing their own financial difficulties;
Advance effective models of housing preservation to maintain existing affordable units, for example by protecting small buildings that risk losing affordability.
Research from the JPMorgan Chase Institute has shown that nearly one in four renters experienced a drop of more than 10% in their total income during the pandemic, even after factoring in government support, but had no safety net like landlords, creating economic vulnerabilities for both tenants. and the owners. The company is working with the National Association for Latino Community Asset Builders (NALCAB) to provide support to tenants affected by the pandemic and threatened with eviction. NALCAB provided direct emergency financial assistance to Latinx-led nonprofit affordable housing providers to keep 2,000 Latinx families in their homes during the height of the economic crisis.
“This announcement underscores JPMorgan Chase’s understanding of systemic inequity issues and its commitment to advancing economic justice. The impact of the COVID-19 pandemic is being felt in waves, and we are on the brink of an affordable housing crisis even deeper than it currently exists. “Said Marla Bilonick, President and CEO of NALCAB. “NALCAB is pleased to work with our member organizations to provide emergency financial assistance to ensure that 2,000 Latin American families can stay in their homes. Nothing could be more critical to the recovery than securing stable housing and JPMorgan Chase has once again been up to the task. ”
The company is also developing innovative housing models aimed at reducing the cost of producing affordable housing. For example, the company recently took a stake in Factory_OS, which cuts the cost and production time of multi-family dwellings by up to 40% through the use of off-site factory construction.
2. Create more paths to affordable and sustainable property
Chase’s mortgage lending business focuses on four key pillars to help overcome barriers to affordable and sustainable homeownership: hire people, expand its presence, improve its products, and participate in policy reform.
Hire staff and expand their presence: Chase expands its traditional network of mortgage advisors to include a new position called “Community Mortgage Advisor,” which is designed to be located in minority and low to moderate income communities. These people are experts in local housing and down payment assistance programs. To date, Chase has hired over 100 community loan counselors nationwide and will continue to grow.
Improve its products: Chase offers a range of products and programs spanning the entire economic spectrum. To overcome two of the biggest hurdles to affordable loans, Chase has expanded its Homebuyer Grant program to $ 5,500 to help more customers pay closing costs and down payment assistance when buying a home. a home in over 6,700 minority communities nationwide.
Participate in policy reform: The Home Lending business is also actively engaging with industry partners and regulators to find ways to fill gaps in the home valuation process, including:
- Promote greater diversity in the evaluation sector: JPMorgan Chase provides mentors to Appraiser Diversity Pipeline Initiative interns. This initiative, led by the Appraisal Institute and Fannie Mae, is designed to attract new people to the field, help interns overcome common barriers to entry, and foster diversity.
- Promote equal access to evaluation data: Promote equal access to assessment data and improve assessment process techniques across the industry.
- Invest in innovation: JPMorgan Chase made a philanthropic investment of $ 1 million in Ashoka and Brookings – two organizations known for their innovative, independent and data-driven analytics – to launch the Assessment of houses in predominantly black neighborhoods the challenge of collecting and studying the most promising innovations to help fill the evaluation gap.
“We are taking a holistic approach to address this very complex challenge in this country,” said Mark O’Donovan, CEO of Chase Home Lending. “We hope to see a meaningful impact for those who need it most and will continue to work in partnership with the public sector – at the federal, state and local levels – to make sure this is the case.”
3. Advancing data-driven policy solutions
The JPMorgan lawsuit PoliticsThe Center released new evidence-based policy recommendations to improve the stability of households weakened by the pandemic and increase the availability and equitable access to affordable housing for renters and landlords, especially black and Latin households. Among its recommendations, the cabinet will help advance:
Address the shortfall in the supply of affordable rental housing by preserving existing housing and producing new affordable housing and stabilizing vulnerable tenants;
Implement effective and targeted rental assistance to households and landlords most affected economically by the pandemic recession;
Encourage eviction reforms that improve outcomes for tenants and landlords and establish a national eviction tracking database;
Rely on COVID-19 protections to effectively support homeowners, such as setting up ongoing foreclosure prevention support that offers legal advice to homeowners in distress;
Promote reforms to increase mortgage market liquidity and improve access to affordable and sustainable mortgages that better serve people of color and low-income borrowers;
Advance federal housing policies that advance fair housing and reduce bias in the home appraisal process.
The company will work to advance these policy reforms and work with policy makers to support housing stability and affordability for households in need.
“Businesses, community leaders and policy makers must work together to deliver solutions that address housing instability and make fundamental changes to the housing market,” said Heather Higginbottom, President of JPMorgan Chase. PoliticsCenter and Co-Head of Global Philanthropy. “These data-driven policy reforms will help families across the country who were previously excluded from stable and affordable housing.”
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services company with $ 3.7 trillion in assets and operations worldwide. The company is a leader in investment banking, personal and small business financial services, commercial banking, financial transaction processing and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of clients in the United States and many of the world’s largest private, institutional and government clients under its JP Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.