Affirmative Action in Mortgage and Housing Loans
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In this SIP, I propose that Congress modify Community Reinvestment Act (CRA) standards so that banks receiving federal funds must make loans to a minimum percentage of racial minorities and low-income applicants in order to continue to receive federal funding. I also propose that Congress change the criteria for Federal Housing Administration (FHA) loans so that applicants can purchase a house with a zero down payment, or so that they can borrow more money to purchase a home with higher property values. This will help solve the problem of the racial wealth disparity because it will allow borrowers to begin to accumulate wealth. While it does not address the larger problems of racial discrimination, and will not completely eliminate racial segregation, it will still provide minorities with greater opportunity for advancement. These plans are politically feasible because they are similar to plans presented by President Bush in his "Ownership Society" agenda. While this similarity alone does not make my proposal feasible, the fact that President Bush's plans are currently being considered by Congress means that the goal of finding ways to improve minority home ownership is already present on the political agenda. This increases the possibility that my proposal will be seen as important and relevant enough for legislative consideration. However, I argue that my plans are more likely to be approved than President Bush's proposals, because his plans will not actually help the poorest segments of society most in need of help. My proposals will more effectively assist the population most in need of assistance.