Philanthropic funding will drive innovative
programs increasing access to homeownership
Chase Home Lending is also announcing expanded
eligibility for affordable mortgage lending products
JPMorgan Chase is increasing its housing affordability
commitments across the U.S. with expanded philanthropic capital and
consumer lending products. At an event today in Washington, DC, the
firm announced $20 million in new philanthropic funding to
organizations across the United States working to expand
homeownership opportunities for underserved communities. The
eight organizations will focus on driving change nationally
and locally, including in Washington, DC, Denver, CO, Pittsburgh,
PA, Twin Cities, MN and Albuquerque, NM.
In addition, the firm also announced an expansion of its
homebuyer grant and DreaMaker mortgage programs. Specifically,
Chase Home Lending will increase its homebuyer grant from
$5,000 to $7,500 in 8,500 neighborhoods across the U.S., which
customers can use to lower their interest rate and/or reduce
closing costs and down payment for purchases of properties in
communities identified by the U.S. Census as majority-Black,
Hispanic or Latino. Chase is also removing the current income limit
for its 3% down DreaMaker mortgage program in communities
where the $5,000 or $7,500 Homebuyer Grant is available—benefitting
more than 15,000 communities nationwide.
“Healthy communities are integral to our business model, and
affordable housing opportunities are vital to creating strong
communities and building intergenerational wealth,” said Tim
Berry, Global Head of Corporate Responsibility, JPMorgan Chase.
“The private sector has an important role to play alongside
non-profit organizations and policymakers in advancing housing
affordability, including increasing access to homeownership.
Today’s expanded commitments are part of the firm’s holistic
approach to mobilizing resources and expertise to address this
issue in Washington, DC and in communities across the country.”
“Chase Home Lending is focused on providing innovative
solutions, products and services to help more people to attain, and
sustain, homeownership,” said Mark O’Donovan, CEO of Chase Home
Lending. “When we work together to address affordable housing
challenges, we can go further. Today’s announcement is a great
example of how business, philanthropy and local partnerships can
join forces to effect change.”
The firm is also focused on advancing economic inclusion and
increasing homeownership opportunities through its businesses. The
bank has taken a local approach in communities that have faced
historical barriers to banking to help offer greater access to
affordable home loans, low-cost checking accounts, and financial
education workshops.
The Challenge
Homeownership is a proven source of wealth building; however,
underserved communities face persistent challenges in obtaining and
maintaining their homes. In nearly every state, people of color are
less likely to own homes compared to white households. For example,
in Washington, DC the estimated 82,000 residents—12% of the city’s
population—that do not have stable housing are overwhelmingly
Black, Hispanic or Latino households.
As part of JPMorgan Chase’s strategy to combat the housing
affordability crisis, the firm is supporting organizations
advancing innovative homeownership financing and wealth building
models that can be successfully scaled throughout the country. By
working with organizations on the local and national levels, the
firm aims to help support underserved individuals throughout their
homeownership journey, whether they be first time homebuyers or
current homeowners.
Delivering Impact with Organizations in Washington, DC and
Across the Country
Today’s philanthropic announcement builds on JPMorgan
Chase’s $400 million five-year commitment to improve
housing affordability and stability for underserved households.
To date, this support has helped organizations serve more than
157,000 households, including stabilizing 59,000 households through
eviction or foreclosure prevention models, helped preserve or
create more than 14,500 affordable housing units, and allowed
nonprofit organizations to leverage $1.8 billion in additional
capital.
One of today’s grantees, Washington, D.C.-based City First
Enterprises (CFE), was awarded $3 million to support their
efforts to help eligible Black and Latino first-time homebuyers
with down payment and closing costs assistance in Washington, D.C.
and select counties in Maryland. Through its subsidiary Homes by
CFE, a Community Development Financial Institution (CDFI)
mortgage lender, CFE supports first-time borrowers with funds to
lower their out-of-pocket expenses associated with buying a home.
Downpayment and closing costs represent the most significant
barrier to homeownership, especially in communities of color. This
innovative new program bridges the homeownership gap by offering up
to 20% of the home’s purchase price for down payment assistance and
additional closing cost support for income-qualified borrowers.
Chase is one of Homes by CFE’s first trust lending partners, and
to-date has provided affordable mortgages to seven borrowers who
have leveraged the Chase homebuyer grant, Chase DreaMaker product,
and Homes by CFE’s down payment assistance to successfully buy
their first homes.
“Everyone knows that homeownership is one of the key engines
that powers social mobility and wealth building over generations;
it just hasn’t been accessible to all of us,” said Oswaldo
Acosta, CEO of City First Enterprises. “We launched Homes by
CFE to demonstrate that with equitable access to flexible capital,
borrowers who were previously locked out of owning a home can
bridge this gap. Given how homeownership works in this country,
it’s crucial to have private-sector partners like JPMorgan Chase
helping to lead the way forward on this innovative model.”
“We know that for many families, homeownership is a critical
tool for building and passing on wealth,” said Nina Albert, DC’s
Deputy Mayor for Planning and Economic Development. “We’re
grateful that through JPMorgan Chase’s partnership with local DC
organizations, we can build on Mayor Bowser’s housing investments
and help more District residents become homeowners.”
Along with Homes by CFE, today’s announcement will enable the
following organizations to support families throughout their
homeownership journey, addressing elements such as homebuyer
readiness, equitable financing, and homeowner stability:
- Homewise – Albuquerque, New Mexico ($1M): Homewise will
pilot a new credit builder loan product with matched savings as a
model for overcoming key barriers to homeownership. Lessons learned
from this pilot will contribute to industry-wide learnings about
how to set up consumers for homeownership through credit building,
savings, and financial coaching.
- Build Wealth MN – Twin Cities, Minnesota ($3M): Build
Wealth MN will expand access to homebuyer education, affordable
mortgage and downpayment assistance, and a matched savings account
for cost-burdened Black households in the Twin Cities, utilizing an
SPCP adopted pursuant to federal fair lending law.
- Impact Charitable – Denver, Colorado ($3M): In support
of the Dearfield Fund for Black Wealth, Impact Charitable will help
scale an equitable financing model which provides down payment
assistance in the form of shared equity, along with wraparound
services, for first-time Black homebuyers through an SPCP adopted
pursuant to federal fair lending law.
- Catapult Greater Pittsburgh – Pittsburgh,
Pennsylvania ($3M): Catapult Greater Pittsburgh will work to
support homeowners to protect their equity and preserve
generational wealth through title clearance, home repairs, and
estate planning. Catapult will also work with partners to increase
affordable housing inventory through land acquisition and property
rehab.
- Compass Working Capital – National focus ($3M): Compass
will work to expand the reach of the Family Self-Sufficiency (FSS)
program, a federal program to help families living in HUD-assisted
housing to increase their savings and earning simultaneously, by
scaling direct service and technical assistance and testing
innovation in program administration.
- Economic Architecture – National focus ($1M): Economic
Architecture will design and pilot a first-of-its-kind liquidity
insurance project to help cost-burdened homeowners cover mortgage
payments in the face of income or expense shocks.
- UnidosUS – National focus ($3M): UnidosUS, the nation’s
largest Hispanic civil rights and advocacy organization, will
advance a national campaign for Latino homeownership that includes
supporting research to inform strategies and policies, galvanizing
cross-sector collaboration, and piloting a Latino homeownership
blueprint in California.
JPMorgan Chase has also been working with The Urban
Institute to support these grantees by measuring impact and
sharing insights with the housing industry to advance housing
stability and affordability for Black, Hispanic, Latino and other
underserved households. Additionally, to support the financial
health of consumers as part of this program and beyond, the firm is
working with behavioral design nonprofit ideas42 to help
consumers better protect and improve their credit, including
preparing families for homeownership.
Advancing Policy Solutions to Increase Homeownership
JPMorgan Chase also advances this work through data-driven
policy solutions and research. Last year, the JPMorgan Chase
PolicyCenter released a policy brief outlining pathways to
advancing affordable, sustainable homeownership as well as insights
into how untangling titles for heirs property homeowners can
support generational wealth building.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial
services firm based in the United States of America (“U.S.”), with
operations worldwide. JPMorgan Chase had $3.9 trillion in assets
and $328 billion in stockholders’ equity as of December 31, 2023.
The Firm is a leader in investment banking, financial services for
consumers and small businesses, commercial banking, financial
transaction processing and asset management. Under the J.P. Morgan
and Chase brands, the Firm serves millions of customers in the
U.S., and many of the world’s most prominent corporate,
institutional and government clients globally. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
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Casey Stavropoulos casey.stavropoulos@jpmchase.com
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