1. Racial Wealth Inequality & Black Purchasing Power ILLINOIS NAACP STATE CONFERENCE SATURDAY, OCTOBER 25 TH, 2014 DEDRICK ASANTE-MUHAMMAD SENIOR DIRECTOR OF ECONOMIC DEPARTMENT NAACP FINANCIAL FREEDOM CENTER

2. Race and Economics in the United States Wealth in the form of land was appropriated from the Indigenous peoples of this country and enslaved Africans were imported to the United States as the wealth of white Americans.

3. The Economic Foundation of the NAACP Springfield, Illinois was a rapidly-growing industrial center at the turn of the century Fierce job competition and the use of black workers as strike breakers during labor strikes caused increased tension An attack by a white mob against the black section of Springfield spurred the creation of the NAACP The Springfield Race Riot of 1908 NAACP ECONOMIC DEPARTMENT 3

4. Economic Justice was the foundation of 1960’s Social Justice Movement Goals of The Freedom Budget 1. Abolition of poverty 2. Full employment 3. Full production / high economic growth 4.Adequate minimum wage 5. Farm income parity 6. Guaranteed income for those who can’t work 7. Decent homes for all 8. Modern health services for all 9. Full educational opportunity for all 10. Better social security and welfare 11. Equitable tax and money policies NAACP ECONOMIC DEPARTMENT 4

5. Little Advances in Income Equality NAACP ECONOMIC DEPARTMENT 5

6. What Happened? The Great Regression NAACP ECONOMIC DEPARTMENT 6

7. The Economics of America’s Promise NAACP ECONOMIC DEPARTMENT 7

8. Racial Income Inequality and the Great Recession  1977 to 2007 only about a 1% increase in Black / white income equity. 2007 to 2009 Black / white income inequality is increasing. NAACP ECONOMIC DEPARTMENT 8

9. The Wealth Divide in the United States 60% of America doesn’t even have 5% of the nation’s wealth, while the wealthiest 20% has over 80% of the nations wealth. NAACP ECONOMIC DEPARTMENT 9

10. 10 State of African American Wealth As of 2010, the Blacks held 13 cents of new wealth and Latinos held 12 cents of net wealth to every dollar Whites held.

11. Employment This unemployment rate hides the larger number of African Americans not working full time or “marginally” attached to the workforce, this is normally about twice the unemployment rate. As many as 27% of African Americans between the ages of 20 and 24 are not employed or in school. http://blogs.wsj.com/economics/2014/07/11/are-more-young-adults-falling-through-the-cracks/ NAACP ECONOMIC DEPARTMENT 11 For the last 50 years, in “good times” and “bad”, African Americans have had about twice the unemployment of whites.

12. NAACP ECONOMIC DEPARTMENT 12 African American Unemployment Unemployment rate gaps between Blacks and Whites exist at every education level

13. Largest Black Markets

14. Illinois Black Purchasing Dollars

16. Black purchasing power: Is used as marketing material for corporations to invest in advertising to African American community Does not take into account what is spent on credit and loans Does not properly reflect income and spending, nor the wealth or economic mobility of our community As those concerned about racial equity should use purchasing dollars to highlight our concern. Understanding Black Purchasing Power

17. Why is there less power in purchasing?

18. Dual Incomes Mask stagnant wages

19. Dual incomes today < 1 income of the 1970’s Discretionary Single income of the 1970’s is greater than Discretionary Dual Income of the early 2000’s $42,450 > $73,770

20. Why $43,000 is more than $74,000 (after adjusting for inflation)

21. Declining savings

22. NAACP Economic Department NAACP ECONOMIC DEPARTMENT 22 Thurgood Marshall Center, Washington D.C. Twitter @NAACPEcon Facebook – Like us @ NAACP Financial Freedom Campaign

23. NAACP Economic Department NAACP ECONOMIC DEPARTMENT 23

24. NAACP Economic Department NAACP ECONOMIC DEPARTMENT 24 Economic Sustainability The goal of our work is to extend equal opportunity to all by way of economic success, sustainability, and security. NAACP Economic Game Changer

25. NAACP Economic Department Financial Educatio n Fair Lending Diversity & Inclusion Community & Economic Development NAACP ECONOMIC DEPARTMENT 25

26. Economic Education  Facilitates events around the country to educate local and state conference NAACP units on financial education topics  Provides grants to individuals to perform financial education at the local level NAACP ECONOMIC DEPARTMENT 26

27. Diversity and Inclusion 1.Opportunity and Diversity Report Cards grade industries based on the strength of their workforce and supplier diversity. 2.NAACP and Dunkin Brands have partnered to strengthen diversity in franchising 3.The NAACP works with the Professional Development Network (PDN) to power the NAACP JobFinder and also Job Fairs around the nation to help facilitate employment 4.NAACP works with the United Negro College Fund (UNCF) to provide paid summer internships to students attending HBCU’s at Wall Street investment banks in a program called Gateway to Leadership 7 NAACP ECONOMIC DEPARTMENT

28. COMMUNITY ECONOMIC DEVELOPMENT The Community and Economic Development Program establishes asset development infrastructure in communities of color leveraging the NAACP network and resources. NAACP ECONOMIC DEPARTMENT 28 Wealth Creation Strengthening Community Assets Job Development

29. Fair Lending  Monitors state and federal policy related to mortgage, auto, payday, and small dollar bank lending  Performs analysis of Home Mortgage Disclosure Act (HMDA) for evidence of discrimination at the lender level  Meets with bank partners around fair lending issues, products, and initiatives to reduce the un- and under-banked population  Researches and evaluates data and reports to determine impact on racial inequality NAACP ECONOMIC DEPARTMENT 29

30. NAACP Job Resources: Job Finder 30 NAACP ECONOMIC DEPARTMENT www.NAACPJOBFINDER.COMwww.NAACPJOBFINDER.COM to find the next job fair or the opportunities posted on the website. The NEXT JOB FAIR IS November 4 th in CHICAGO! http://www.naacpjobfinder.com/events

31. NAACP Economic Partnerships NAACP ECONOMIC DEPARTMENT 31

32. © 2014 Ocwen Financial Corporation. All rights reserved. NAACP/OCWEN Partnership Homeownership Preservation & Expansion in Communities of Color October 2014

33. The NAACP’s Partnership with Ocwen The foreclosure crisis has had – and continues to have – a disproportionate adverse impact on minorities Our partnership with Ocwen has two objectives: Outreach to assist struggling homeowners in communities of color Supporting mortgage reform and other policy initiatives that advance the interests of low-and-moderate income and other under- represented Americans 33

34. Ocwen Financial Corporation Introduction  Ocwen is a mortgage loan servicer with a portfolio of over two million homeowners nationwide  Ocwen has more than 25 years experience in the mortgage loan servicing business  Ocwen is not a bank  Preventing foreclosures is good for homeowners, loan owners and Ocwen’s business  When loans go delinquent, Ocwen seeks solutions that allow homeowners to keep their homes and yield positive cash flow for the loan investors 34

35. Ocwen’s Efforts to Help Illinoisans Struggling with their Mortgages  Ocwen services more than 90,000 mortgage loans in Illinois  Since 2012, Ocwen has provided over 11,500 loan modifications to Illinois families in distress  More than 9,300 of these modifications have included principal write downs  Average amount forgiven per loan: $69,563  In total, Ocwen has forgiven almost $651 million in principal in the state of Illinois 35

36. 36 Delinquent Loans:13,828 Underwater Loans:25,171 Delinquent and Underwater Loans: 9,816 *.... But More Can Be Done In Illinois Note: Data does not include loans on the ResCap platform Many Illinois families are still stuck with underwater loans: Sample of Highly Distressed Illinois Counties * These homeowners are perfect candidates for Ocwen’s Shared Appreciation Modification (SAM) program County Loan Count Delinquent Count Underwater Count Delinquent & Underwater Cook471548066148376121 Will741611022063746 Lake63288061523538 DuPage75927611249453 Kane47795731263430 McHenry3121368822271 Winnebago1472215407155 Saint Clair1602227423142

37. Ocwen’s Shared Appreciation Modification (SAM) Program  Unique principal reduction modification program designed for underwater mortgages  Provides built-in incentives for borrowers to stay current and mitigates losses for investors  Principal reduced to as low as 95% LTV and interest rate typically cut to 2%  Written down portion forgiven in equal amounts over three years so long as borrower remains current  Post-mod home value appreciation is shared if home sold or refinanced  75% kept by homeowner  25% to loan owner to reimburse for losses  Low re-defaults; High praise in community and government circles 37

38. Owen’s Goals NAACP ECONOMIC DEPARTMENT 38 Goals  Ocwen would like to join forces with NAACP regional members to collaborate on homeowner outreach and foreclosure prevention efforts  Ocwen seeks your expertise and help on  Effective ways way to connect with distressed homeowners in the neighborhoods you serve  Communication with Ocwen, including feedback on emerging issues, opportunities and challenges in your communities

39. NAACP ECONOMIC DEPARTMENT 39 Financial Freedom Campaign Media Presence

40. Economic Opportunity Website: NAACP.org/econ The Economic Opportunity homepage includes information and resources on our economic programs. www.NAACP.org/econ NAACP ECONOMIC DEPARTMENT 40

41. STAY IN TOUCH WITH THE NAACP ECONOMIC DEPARTMENT 41  Visit NAACP.org/econ and sign up for The Angle newsletter  Apply to become a Financial Freedom Campaign Micro-Grantee (State Conferences)  Like us at Financial Freedom Campaign on Facebook  Follow us @NAACPEcon on Twitter  Text Econ to 62227 for Mobile Updates  Read The Crisis at thecrisismagazine.com  Email the Economic Department at econprograms@naacpnet.org econprograms@naacpnet.org  Call us at 202-478-6400 NAACP ECONOMIC DEPARTMENT

42. State Economic Chair Presentation Information on 2014-2015 micro-grant award. Proposed projects for 2014- 2015. Interaction with local units: ◦ What economic issues have you seen occurring in your area? ◦ What plans do you have to address these issues? NAACP ECONOMIC DEPARTMENT 42 State Conference and Local Unit Brainstorming Session

43. Thank You, Questions? DEDRICK ASANTE-MUHAMMAD SENIOR DIRECTOR OF THE ECONOMIC DEPARTMENT HTTP://WWW.NAACP.ORG/ECON FINANCIAL FREEDOM CAMPAIGN ON FACEBOOK