HUD Secretary Shaun Donovan calls the proposed Senate bill “the most important piece of repairing the damage from our financial crisis that remains.” But, civil rights groups and housing advocates claim the bill reduce requirements for banks to lend to low- and moderate-income homebuyers.
There’s a fight in Washington over the future of homeownership in America. At issue is a bipartisan bill to dramatically reshape the housing finance industry — the industry that was at the heart of the financial crisis.
The Obama administration supports the bill. But civil rights groups and housing advocates say it would weaken rules that push banks to lend to low- and moderate-income homebuyers.
Shaun Donovan, secretary for Housing and Urban Development, is trying to help push it forward. “We would be able under the current bill to dedicate $5 billion a year to affordable housing,” he says. “That’s the largest new investment in affordable housing we’ve had in more than a generation.”
Housing advocates and civil rights groups say they are worried about the bill though because they say it would end requirements that a certain percentage of loans be made to low- and moderate-income people.