CAREB President's Message

The American Dream in Peril

The genesis of the REALTISTS® is grounded in the historic struggles of African Americans to eradicate prejudicial and disparate treatment of minorities in housing and the real estate industry. Throughout history, REALTISTS® members of the National Association of Real Estate Brokers (NAREB)® and the California Association of Real Estate Brokers (CAREB)® stood steadfast in our commitment to increase home ownership rates of minority and low-income households by securing equal housing opportunities for all Americans. Espousing the principle of “Democracy in Housing,” REALTISTS® fought to eradicate those discriminatory practices in the real estate and mortgage industries that deterred realization of the “American Dream” by disenfranchised segments of our communities.

Home ownership rates for minorities, particularly African-Americans and Hispanics, increased substantially in recent years. Unfortunately, the current mortgage and credit crises reveal that a substantial amount of the increase realized was predicated upon utilization of subprime and predatory mortgage financing. The mortgage and credit crises now have fostered a posture of retrenchment by the mortgage industry that is stifling the housing market.

An objective assessment of the circumstances supports the assertion that, unless there is remedial action, the subprime and predatory lending practices enacted will derail laudable attempts to increase minority homeownership rates. The subprime mortgage crisis, the cause of the greatest loss of wealth by minorities in history, is eroding the economic stability of minority consumers/communities and creating potentially irreconcilable hindrances to the availability of mortgage loans for many low income and minority households, now and in the future.

The REALTISTS’® overriding concern is that the response to the subprime crisis by the financial and credit industries will place undue constraints on the ability of minority and low-income households to attain homeownership. A comprehensive response to the subprime crisis that includes industry regulatory imperatives, consumer education and financial literacy counseling as integral components of the overall mitigation strategy is mandated to reconcile the matter. Clearly, the REALTISTS’® mission of service is yet unfinished, and our commitment to advocacy for our communities must prevail.

Join us as we continue to strive to make the American Dream a reality.

 

Monroe Wooton, President

California Association of Real Estate Brokers (CAREB)
 

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