Submitted by FH: Bank SF
Teresa Bryce Bazemore, president of the Federal Home Loan Bank of San Francisco (FHLBank San Francisco), delivered a powerful keynote address, “Advancing Racial Equity: Increasing Homeownership and Wealth Building,” at the recent 25th Annual Conference of the African American Credit Union Coalition (AACUC) in Atlanta.
Bazemore began by lauding the AACUC’s impactful mission and dedication to fostering diversity, equity, and inclusion within the credit union movement. “This is a major milestone for an organization with an important mission,” she said, “and you make a difference every day with your ‘Commitment to Change.’ I’m personally inspired by how effectively the AACUC is working to shape diversity, equity, and inclusion throughout the credit union movement.”
Bazemore spoke passionately about breaking down barriers and promoting financial inclusion for all. The speech was a resounding call to action for the financial industry to work collaboratively to narrow racial homeownership and wealth gaps. “Representation matters,” Bazemore said, noting that a majority of the U.S. population will be from minority racial and ethnic groups by the year 2050.
The speech came as the mortgage finance industry is taking proactive steps to address systemic barriers in the lending industry. Meetings like the AACUC’s annual conference provide a platform for open discussions and sharing best practices. Such gatherings enable stakeholders to learn from each other and explore innovative ways to promote financial inclusion and homeownership opportunities for marginalized communities.
As president of FHLBank San Francisco, she acknowledged that the nation’s 11 Federal Home Loan Banks “generally operate somewhat behind the scenes. However, given the turmoil we saw in the banking sector in the spring, we have been a little more visible this year.”
She noted, “Our primary role in the nation’s financial system is to be a reliable provider of liquidity to our 300-plus member financial institutions – liquidity our member-lenders need to make home mortgages and provide credit for other purposes. Many of our members borrow from us daily, using our financial products and services to lower their funding costs, reduce interest rate risk, manage liquidity, and offer a wider range of credit products to their customers or members.”
Bazemore maintained that FHLBank San Francisco, and the other 10 regional FHLBanks, are expanding their focus beyond traditional mandates to create targeted programs that address regional needs and economic disparities, including narrowing the racial homeownership and wealth gaps and fostering more equitable access to financial opportunities for all.
Detailing the FHLBank System’s dual mission, Bazemore emphasized financing affordable housing and supporting community economic development. She highlighted grants recently awarded by FHLBank San Francisco’s Affordable Housing Program (AHP), which provides funding to create or preserve housing for low- and moderate-income families, and the Bank’s WISH downpayment assistance grants, which enable individuals and families to overcome barriers to homeownership.
Bazemore said that racial equity in the lending marketplace is a key priority for FHLBank San Francisco. Citing the impact of racial discrimination in accessing financial services, she stressed the urgent need to embrace diversity in the financial industry. Bazemore urged the industry to reevaluate current underwriting criteria, which often perpetuate biases and limit access to homeownership for many families, especially Black Americans.
FHLBank San Francisco has partnered with the Urban Institute to tackle these challenges, investing in a Racial Equity Accelerator for Homeownership. The Accelerator is examining four issues: alternative underwriting, student debt’s impact on homeownership, foreclosure prevention, and the role of artificial intelligence in mortgage lending. The collaboration is aimed at finding tangible solutions to promote equitable homeownership and wealth-building opportunities for marginalized communities.
And emphasizing the power of collaboration, Bazemore said the San Francisco FHLBank holds industry-wide gatherings to strategize addressing the most pressing issues. “I like to think of our Summits as an industry-wide call to action that advanced, through a series of frank discussions, thinking on why and how existing systems and structures in the lending industry are failing so many people in our country.”
In conclusion, Bazemore left the audience with a powerful call to action: “By cultivating a diverse and inclusive workforce, we are all better positioned to succeed in an increasingly diverse marketplace. We can leverage our diversity to innovate product and service offerings to help our members achieve their goals. We can work together to promote financial inclusion so that everyone is operating on a level playing field, where no one is excluded, and everyone has equal access to opportunity.”
Be the first to comment