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Mortgage companies announce plans to improve racial homeownership gap

The homeownership rate for Black Americans is 42% and for White Americans it's 72%, according to Fannie Mae's plan.

INDIANAPOLIS — The federal Housing Finance Agency told Fannie Mae and Freddie Mac to even the playing field for families of different backgrounds to buy a home in 2021.

On Wednesday, the companies released their three-year Equitable Housing Finance Plans.

The homeownership rate for Black Americans is 42% and for White Americans it's 72%, according to Fannie Mae's plan. The report adds that is about where it was 50 years ago.

Some of Fannie Mae's actions or goals include factoring in rent toward a person's credit score, down payment assistance and lower mortgage insurance premiums.

Another action is to provide a financial education.

"Black Americans are less likely to have parents who own homes, and are less likely to benefit from family wealth or wealth-building knowledge," according to the report.

Fannie Mae said they are working with community groups, business partners, and professional associations to develop and implement initiatives.

Freddie Mac said their actions were developed to facilitate homeownership sustainably and responsibly.

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