(Wall Street Journal) Morgan Chase & Co. said it would extend billions of dollars in additional loans to Black and Latino home buyers and small-business owners as part of a push to narrow America’s racial wealth gap.
The bank—America’s largest—said it is committing a total of $30 billion over five years to the effort, which focuses heavily on expanding access to affordable housing as well as boosting minority-owned small businesses.
Some $8 billion will go toward funding an additional 40,000 mortgages to Black and Latino home buyers. JPMorgan also said it would devote $14 billion to finance 100,000 affordable rental units, lend $2 billion to small businesses in majority Black and Latino communities and open new branches in underserved areas of Chicago, Los Angeles and Detroit.
Black homeownership rates are already at their highest in history (red line) while black median weekly real earnings growth is also at its all-time high.
Hispanic (Latino) homeownership rates are already at their highest in history (blue line) while Hispanic/Latino median weekly real earnings growth are also at its all-time high. Even higher than at the peak of the housing bubble (circa 2005).
JPMC’s residential mortgage share of total lending is near its lowest level since 2005.
And JPMC’s stock price and EPS are rebounding from the Covid shutdowns.
In summary, this is a relatively safe time for JP Morgan to commit $30 billion to bridge racial wealth gap.