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Increasing Asset Acquisition for Low-Wealth Hoosiers

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A Downpayment on the Divide: Steps to Ease Racial Inequality in Homeownership

Released by Prosperity Now, this report explores the relationship between race and homeownership and recommends ways to leverage the wealth-building potential of homeownership to close the divide. 

One of the most significant advantages of homeownership is the financial security a home provides. Homeownership is a lucrative asset – indeed, homeownership is the most valuable asset a family owns – bringing with it enormous wealth-building potential. Given this, it is important to understand how correcting past mistakes and achieving greater racial equality in this space could narrow the racial wealth divide and most importantly, suggest ways to achieve this.

The report recommends policies that would protect the CFPB, ensure access to affordable mortgage credit for homebuyers of color, promote the increased use of alternative data in credit reporting and scoring, and boost enforcement activities to support fair lending and combat discriminatory practices. By taking these actions, it would be easier for consumers of color to access safe mortgage products.

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Logan Charlesworth