Last week, Mayor Julián Castro of San Antonio faced the Senate Banking Committee for his confirmation hearing as nominee to head the U.S. Department of Housing and Urban Development. Overall, the hearing went fairly smoothly, with Castro receiving support from committee Republicans Bob Corker of Tennessee and John Cornyn of Texas, who introduced him.
For the benefit of homeowners, renters, and all Americans, confirming Julian Castro as Secretary of Housing and Urban Development is the best opportunity to ensure a sustainable housing system and a housing finance overhaul that serves all communities.
A three-term mayor of America’s seventh-largest city, boasting a majority-Latino population, Julián Castro presided over San Antonio’s successful urban revitalization. As he succeeded in San Antonio, we believe he can succeed in the Obama Cabinet.
While NCLR has expressed strong support for Castro’s nomination, adding another highly qualified Latino to the Obama Cabinet, no matter who the new secretary is we urge that person to focus on ensuring real, affordable access to housing credit for communities of color in any housing finance overhaul.
Fortunately, there is strong reason to believe that such goals are consistent with Castro’s positions. Though the hearing did not delve into specifics, Castro highlighted support for major housing finance changes.
Currently, control of the two government-sponsored enterprises is placed under the Federal Housing Finance Agency, but this temporary system is unsustainable. The Senate Banking Committee recently passed the Johnson-Crapo proposal, which would overhaul the current system, replacing Fannie Mae and Freddie Mac with private capital backed by government guarantee.
Unfortunately, the current version of this bill passed in committee doesn’t do nearly enough for the Latino community, effectively cutting off unacceptable numbers of people of color and underserved communities from access to affordable mortgage credit. A newly confirmed Secretary of Housing and Urban Development could persuade the Senate to change that while also impacting access and affordability through improvements at the Federal Housing Administration. We hope that, if successfully confirmed, Julián Castro will make sustainable housing finance reform a top priority.