24. RESOLUTION IN SUPPORT OF FORECLOSURE ASSISTANCE

lclaaLCLAA 17TH NATIONAL MEMBERSHIP CONVENTION
ORLANDO, FL
AUGUST 4-8, 2008


RESOLUTION:

24.    RESOLUTION IN SUPPORT OF FORECLOSURE ASSISTANCE
AND AN EXPANSION OF AFFORDABLE HOUSING FOR
FOR WORKING FAMILIES

Whereas, home ownership plays a crucial role in the accumulation of wealth for Latino working families nationwide and home ownership among Latinos is 30 percentage points below those of Non-Hispanic Whites.

Whereas, a subprime mortgage is a mortgage made at a higher interest rate to a borrower who does not qualify for a traditional mortgage with market interest rates; and

Whereas, 40% of Latinos and 52% of African Americans borrowers receive subprime mortgages; and nearly half of all mortgages made in 2006 were high-cost subprime loans and studies show African-American borrowers are 3.2 times more likely to be steered into these mortgages than a white borrower, and Latinos are 2.7 times more likely - even when income and other credit characteristics are taken into account, African American and Hispanics receive a disproportionate number of subprime mortgages; and

Whereas, loan problems with the subprime lending industry markets have contributed to what is now the worst slump in the housing industry in 16 years and as a result, tens of millions of homeowners are experiencing a drop in the value of their homes.

Whereas, according to the Center for Responsible Lending, 2.2 million families , mainly families of color, with subprime loans made since 1998 have faced or will soon face foreclosure and lose their homes because of predatory mortgage lending practices; and

Whereas, homeownership in our country can at times provide the capital necessary to put our children through colleges and universities, which in this day and age is a necessity for success and prosperity in America; and

Whereas, homeownership can be the single most important determinate for aging Americans, as to whether we will live out the sunset years of our lives in grace and dignity, or squalor and poverty; and

Whereas, the impact of these subprime mortgages, which were once touted as dramatically increasing homeownership among our nation's racial and ethnic minorities, will in fact be devastating to our families and in too many cases, entire communities; and

Whereas, ending the foreclosure crisis is vital to the recovery of the American economy and Latinos are disproportionately represented among those who live in deteriorated and unsafe housing structures, and are more likely to qualify for affordable housing assistance.

Therefore be it resolved, that the Labor Council for Latin American Advancement (LCLAA) will advocate for the Latino working families who are in danger of losing their homes.

Be it further resolved, that the Labor Council for Latin American Advancement (LCLAA) will urge Congress to push for legislation that will: help families facing foreclosure keep their homes; help other families avoid foreclosures in the future; and help the recovery of communities harmed by empty homes as a result of foreclosure process.

Be it further resolved, that the Labor Council for Latin American Advancement (LCLAA) will urge Congress to push for: an expansion of affordable rental housing in both rural and urban areas for low income individuals and families; an increase in affordable home loans to give Latinos a fair shot at achieving homeownership; and incentives to encourage home buying.

Be it Further Resolved, that states adapt home ownership classes/workshops, before the approval of a loan is granted to assure that Latinos thoroughly understand the responsibility of homeownership.

Respectfully submitted by: 

LCLAA Executive Board

REFERRED TO THE COMMITTEE:_________________________
CONCURRENCE: _______________________________________
NON-CONCURRENCE:___________________________________