The Problems Created by the Practices and Requirements of Home Mortgage Lenders on Home Ownership

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Authors

Ball, Richard Dennis

Issue Date

1973-12

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en_US

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Abstract

Financial institutions play a very important role in satisfying the housing demand. There is growing interest as to the effects of the financial institution's policies and the functions they perform on the likelihood of home ownership by low-income minority groups.|Adequate housing for United States citizens has long been a goal of this country. Property ownership is considered desirable in our society and important to the well-being of our people. It is with this in mind that we investigate the financial institutions' role and attempt to make an objective analysis of the present conditions along with positive suggestions for improvements. The immenseness of the housing dilemna must be noted and recognized as a constraining factor in studying the problem. It is virtually impossible on a limited basis to consider the effects of any one group on the entire housing industry. This does not limit the usefulness of this study in any way, but rather recognizes its limitations.|The sources for this study's information include periodicals, newspaper articles, books and other library sources. In addition, official Federal government documents and publications were valuable. Private industry also contributed a great deal of information. It is interesting to note the efforts that have been made in analyzing the housing problem by large corporations. Firms like Westinghouse, Aluminum Company of America, Boise Cascade, Gulf Oil, American Standard, and Kaiser Industries, to name a few, have spent many man hours researching the problem. Of course, all these firms are heavily oriented to the building products industry, but their studies are far more detailed and conclusive and do not concern themselves with only the additional sale of their respective products. Finally, information was also obtained from concerned officials such as Senator William Proxmire, Democrat, Wisconsin.|In analyzing the relationship between financial institutions and low-income minority borrowers, it is necessary for one to fully understand the role of the lender as it relates to establishing home ownership. Therefore, the seller, the buyer, and the escrow holder relationship will be explored first. This explanation will not only show the importance of the lender, but will raise important questions with regard to the influence of the lender on home ownership by low-income minority groups.|Governmental and private programs have become very important to the financial aspect of home ownership, especially, by low-income groups. A discussion of these programs and their advantages and disadvantages are important in trying to determine what changes need to be made.|Minority groups, like many other groups in the private sector, are undergoing changes. These trends are important factors in deciding on the policies and programs that will be necessary to satisfy the demand for housing by low-income minority groups.|Conferences, congresses, conventions, and committees have been used to develop suggestions for financing mortgages to minority and low- income groups. These proposals fall into two categories, i.e., governmental assistance and assistance from the private sectors. These proposals have advantages and disadvantages which must he evaluated. Many of these proposals can alleviate the problems of supplying low- income minority groups with mortgage funds.

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Creighton University

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A non-exclusive distribution right is granted to Creighton University and to ProQuest following the publishing model selected above.

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