This good news came six weeks after the Department of Housing and Urban Development charged that Freddie Mac's policies had made it hard for thousands of African-Americans to buy a home. Privately, Freddie Mac officials fumed at HUD's accusation, labeling it a cheap shot that used bad data to reach a hurtful conclusion. But instead of wallowing in their anger, Freddie Mac's bosses came out swinging. We think we were doing a lot to begin with. Whatever the reason for its stepped up effort, Freddie Mac should be commended for going on the offense - rather than circling its wagons.
Home ownership is the primary source of economic wealth for American families.
People who don't own homes are more likely to stay mired in poverty than those who manage to buy a house whose appreciating value can improve their economic condition. The homeownership rate of African Americans lags far behind that of whites, HUD reported last year. This great difference in wealth between African Americans and whites exists despite a much narrower income gap between the two groups. With less income, black families don't save as much, or make as many investments in the stock market as do white families. But the biggest asset that most families have is their home - and it is the homeownership gap that seems to weigh most heavily in the great disparity between net worth of black and white families.