Some Solutions to Wealth Disparity Suggested
In a recently published piece, “How Our Next President Can Shrink the Wealth Gap,” I propose policy solutions to address increased wealth inequality resulting, in part, from the lowest homeownership rate in the United States in nearly fifty years. Regulation intended to protect consumers has resulted in reduced willingness to lend to borrowers with less than perfect credit, especially through Federal Housing Administration programs, which were historically used as a tool to increase homeownership in lower income families. However, recent transactions suggest that there is significant private capital ready to invest in the mortgage markets given the appropriate circumstances.
In this article, I suggest that the next administration should encourage this private capital by introducing more clarity into the system, specifically through providing certainty to the process, and re-examining the regulatory system, which could increase willingness to lend and result in higher net homeownership.
Read the complete article, “How Our Next President Can Shrink the Wealth Gap,” which first appeared in American Banker on August 13, 2015.