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Black Americans Pay More For Homes Than Any Other Group: Study Finds

A new study from MIT has found that Black Americans pay more for homeownership than any other group.

Black Americans, HomeownershipJoe Raedle / Getty Images

The study, conducted by Edward Golding, executive director of the MIT Golub Center for Finance and Policy, reports that Black Americans pay more for mortgage interest, mortgage insurance, and property taxes than other homeowners.

The disparities are as follows: $743 per year in mortgage interest payments, $550 a year mortgage insurance premiums, and$390 per year in property taxes. All-in-all this accounts for a $67,320 loss in retirement savings for Black homeowners over 30 years.

“The small differences compounding over the life of the mortgage and during homeownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

“While mortgage costs are determined by markets to some extent,” said Golding, “there is a great deal of public policy that influences these rates, especially as it impacts people of color. We can and should address these issues at a policy level and start now to eliminate the large wealth gap between Black and White homeowners that we created in part through our current mortgage system.”

Check out the paper for yourself here.

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Airlines Used Cares Act Funds To Pay Workers. Airline Contractors Took Funds And Let Workers Go, Report Says

In the months after Congress allocated of hundreds of millions of dollars to keep airline industry employees working, passenger airlines applied for shares of that money and then then laid off less than 1% of their workers, until the funding ran out.

Airline contractors similarly applied for money and then laid off about 58,000 people, about 35% of their workers, a new report says.

“Contrary to congressional intent, Treasury permitted aviation contractors to lay off thousands of workers and receive full payroll support calculated based on the companies’ pre-pandemic workforce,” according to a report, released Friday by the House Select Subcommittee on the Coronavirus Crisis.

The report, “Unnecessary Costs: How the Trump Administration Allowed Thousands of Aviation Workers to Lose Their Jobs,” was issued by the House Select Subcommittee on the Coronavirus Crisis.

It blasted both the slow pace of work by the Treasury Department and airport contractors’ allocation of the funds they received.

“This staff report documents how the Department of the Treasury’s implementation of the Payroll Support Program (PSP) caused thousands of workers at aviation contractors to lose their jobs,” said the introduction to the report.

“Documents uncovered during the Select Subcommittee’s investigation show that aviation contractors sought to avoid ‘unnecessary costs’ by terminating employees before executing PSP agreements,” the introduction continued.

In comparison with passenger airlines, “Aviation contractors reported conducting 57,833 layoffs and furloughs prior to applying for PSP assistance—more than 17 times the number reported by passenger air carriers,” the report said.

The Cares Act was approved by Congress on March 27. The report makes a distinction between the 57,833 layoffs and furloughs before PSP applications were filed under the act, and the16,655 layoffs between

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FG to pay local contractors N15bn

By Nduka Chiejina (Assistant Editor)

The Federal Government has budgeted N15 billion in 2021 to settle local contractors.

This is contained in the 2021 budget details under Service Wide Votes captured as payment of local contractors debt.

In August, contractors under the aegis of Local Contractors of Nigeria picketed the Federal Ministry of Finance demanding to be paid for contracts executed three to 12 years ago and running into billions of Naira in various Ministries, Departments and Agencies (MDAs) of the Federal Government.

Nigeria Airways ex-workers have been scheduled to be paid N5,750,380,668 in 2021.

Also for next year, the government has made provision to inject N15 billion into “Development Finance Institution (DFI).”

The budget did not specify if the N15 billion is for all the DFIs or just one.

Plans have been on to recapitalise the Development Bank of Nigeria (DBN) with 2021 as the target year for additional funds to be injected into the bank.

The injection of additional capital into the DBN will boost its capacity to fund more Micro Small and Medium Enterprises (MSMEs).

Next year, the government will release a grant of ₦10 billion “to BoI to support low-interest lending to SMEs”.

Aside from DBN, other Development Finance Institutions in Nigeria include the Bank of Agriculture (BOA); Bank of Industry (BoI); Federal Mortgage Bank of Nigeria (FMBN); Nigeria Export-Import Bank (NEXIM) and The Infrastructure Bank.

READ ALSO: How FG will finance 2021 budget — Osinbajo

Under Service Wide Vote in 2021, N25 billion has been earmarked for special intervention; ₦5 billion to settle MDAs electricity bills.

N17,899,000,000 will be refunded into the special account, and another ₦16,703,390,000 will be returned to the Asset Management Company of Nigeria (AMCON) while ₦20 billion will be spent on special intervention programmes and projects next year.

₦15,000,000,000 will spent

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Blacks still pay more than others for home ownership – MIT study

FILE PHOTO: A residential building construction site is seen, amid the outbreak of the coronavirus disease (COVID-19), in Detroit, Michigan, U.S., April 28, 2020. REUTERS/Rebecca Cook

NEW YORK (Reuters) – African Americans still pay more than any other group to own a home, a disparity that over 30 years contributes to roughly half the current $130,000 gap between Blacks and whites in savings at retirement, a recent Massachusetts Institute of Technology shows.

The annual difference of $743 in mortgage interest payments, $550 in mortgage insurance premiums and $390 in property taxes, when invested over 30 years results in lost retirement savings of $67,320 for Black homeowners, according to the study called “The Unequal Costs of Black Homeownership.”

These inequities make it impossible for black households to build housing wealth at the same rate as white households, said the study, whose lead author, Edward Golding, is executive director of the MIT Golub Center for Finance and Policy.

Black homeowners on average have lower credit scores and lower down payments, largely rooted in past discriminatory policies and practices, making them disproportionately disadvantaged by risk-based pricing, the study found.

Golding, a former head of the Federal Housing Administration, said in a statement that “mortgages costs are determined by markets to some extent,” but “there is a great deal of public policy that influences these rates especially as it impacts people of color.”

Reporting by Herbert Lash; Editing by Alden Bentley and David Gregorio

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Ambujwadi slums dwellers ask to pay Rs 35,000 for water connection by certified contractors

While water is a basic necessity during the covid pandemic, about 40,000 population in Ambujwadi area of Malad are struggling to get water connection in their houses. The residents have complained to the BMC that certified contractors and plumbers are demanding Rs 35,000 for each connection which is impossible for the people to pay.

Muhammad Jabir Khan is a tailor by profession but his work has not started after the lockdown was relaxed. He has approval from the BMC for the water connection but the contractors are demanding Rs 35,000 he said. “I spend Rs 60 per day on water for my family of five people. My work has not started after the lockdown and there is no earning. I was not able to pay the school fees of my children this year so they are not able to attend their online classes. Now, the contractor is asking a huge amount for water connection. I cannot afford it,” Khan said.

In slums, five households adjacent to each other are given one water connection. It first gets approval from the BMC and they have to deposit Rs 500 each. Then they pay to a contractor or certified plumber for the pipeline and water meter which comes out around Rs 10,000.

Rais Azad has a family of seven people and spends Rs 100 daily to buy water. “We get tankers or get it from the nearby basti. We have been fighting to get water connection to our Ambujwadi since 2010. I applied in 2014 but haven’t got the connection yet. Our people had protested in 2015 at the BMC office but did not get any assurance. Even the High Court has ruled in our favour. But these contractors are not ready to charge the right price,” Azad said.

Ambujwadi is a

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