The Role of the Federal Government in Expanding Home Ownership

In order to get banks to begin lending who had been spurned by increasing rates of foreclosure, the federal government invented what it described as mortgage insurance. It would essentially insure the mortgages of a wide range of people to take the risk of lending away from banks. The hope was that this would make banks open to lending much more widely and with more abandon which theys lowering the cost of borrowing. But black people still want to be home owners for the same reason that white people do.