AREAA Advocacy Efforts
Founded in 2003, Asian Real Estate Association of America (AREAA) is a national professional trade organization dedicated to closing the homeownership gap facing the Asian Pacific American (APA) community.
AREAA advocates for policy positions at the national level that will reduce homeownership barriers facing the APA community.
Market Adoption of Non-Credit Tools
First time and immigrant home buyers often lack the credit depth necessary to qualify for low interest rate mortgages. They have to obtain alternate financing at higher rates or go without purchasing a home altogether.
The market should test and implement alternative credit tools, such as First American’s Anthem, and the VantageScore Solutions. These programs measure creditworthiness of borrowers based on non-traditional credit lines, such as: rent, utilities and other financial obligations.
Implementation of these programs will streamline the underwriting process and better position more immigrant and first time homebuyers to qualify for affordable mortgage products.
GSE Regulatory Reform Bill
Congress is considering various proposals to retool the GSE regulatory regime related to safety enhancements and capital requirements.
AREAA supports:
- A permanent increase to the conforming loan amount limit, consistent with median home prices in high cost markets
- Measures to set aside GSE profits for affordable housing and foreclosure prevention programs
- The reformulation of the GSE’s statutory underserved goal to reflect added focus on minority homeownership needs, first-time buyers, and to promote increased GSE activities in markets with significant high-cost lending activities.
- A balanced regulatory regime that protects the financial viability of the GSEs and provides sufficient flexibility to protect product innovation.
Foreclosure Prevention
A portion of the GSE after-tax profit should be earmarked for post-purchase counseling, consumer awareness and foreclosure prevention efforts. Mortgage rescue funds should be made available to low or moderate income borrowers; or borrowers in neighborhoods comprised primarily of minorities to assist in refinancing into manageable fixed-rate products.
FHA Reform
AREAA believes that a strong FHA can help our communities by:
- Making permanent the temporary increase to FHA's loan limits
- Allowing FHA to insure all condo units as single family homes
- Allowing FHA to insure flexible down-payment mortgages
- Allowing FHA to use risk based pricing
- Allowing FHA to insure stated doc mortgage loans
Increased loan amounts, financing alternatives and acceptable property options under FHA guidelines will increase the affordable housing options for many Asian Americans. Historically, this segment has not used FHA loans in great numbers due to the fact that most Asian Americans live in high-cost metro areas, where median home prices lie well above FHA loan limits. Also, many Asian Americans are self-employed and require stated income products, disqualifying them from strictly full doc FHA loans.
Anti-Predatory Lending Legislation
Legislation has been proposed to deter predatory lenders from taking advantage of unknowing borrowers. Asian Americans have been victimized by these unethical real estate lenders because many of them lack familiarity with the mortgage process in this country, which can become magnified by language barriers.
AREAA supports uniform standards throughout the country, increased penalties, severe license restrictions, tougher enforcement on unscrupulous lenders and increased disclosure from lending institutions regarding their minority lending practices.
AREAA opposes overly restrictive limitations around products, and mortgage terms as long as there is sufficient disclosure and choice for the borrower and AREAA supports increased overall consumer disclosure and education on riskier mortgage products.
Maintain International Investment in U.S. Real Estate Market
Foreign interest in U.S. real estate investment opportunities is at an all time high. However, given the recent restrictions placed on visa issuance, it has become increasingly more difficult for foreign nationals to visit and spend time in the U.S.
AREAA believes visas for foreign retirees to live and reside in the U.S. should be easier to retain. This would not be a green card that would permit employment, but a separate designation that would permit someone to reside in the US and invest in our real estate market without burdening our social services or health care.
Still Separate and Unequal
A Public Hearing on the State of Fair Housing in America
Letters to Congress
