One such article that I came across that intrigued me is entitled: “JPMorgan Chase-funded program aims to convert Detroit renters into homeowners.” The article informs readers that JPMorgan Chase is developing a pilot program allowing for low-income home renters to transition into homeowners: an opportunity that circumstantially would not be deemed possible by the current mortgage banking system. Continuing a program developed and successfully implemented in Cleveland, the bank will place down payments 188 homes via a donation to the Operation Resource Fund and sell these homes to long-term renters. The creation of this affordable housing initiative for Detroit will consequentially allow 54 low-income renter families to transition into homeowners, and more importantly incontrovertibly permits these families to gain financial assets, equity, confidence, ownership, pride, and stability. This one initiative stems from a $20 million grant dedicated to affordable housing initiatives in the city of Detroit, and the overall investment of JPMorgan Chase is raising from an astonishing amount of $150 million to $200 million by the end of 2022.
This article initially gained my interest due to the immediately apparent parallels between JPMorgan Chase’s and Muhammad Yunus’s approaches to alleviating poverty. Both boldly and powerfully question institutional banking norms in attempts to assuage economic disparity via lessening the requirements necessary to qualify for financial assistance. Muhammad Yunus’s curious nature led him to consider and eventually implement a revolutionary banking model that requires no collateral for bank loans, as well as his micro-loaning structure at his Grameen Bank. Similarly, JPMorgan Chase’s new model of converting rental payments into mortgage payments only requires a consistent and timely track record of paying rent for consideration. Just as Muhammad Yunus trusts the public enough to repay their loans and thus began by loaning his own money, JPMorgan Chase is wagering $1.5 million on the presumption that people who consistently pay their rent will additionally pay their mortgage payments. Having faith in humanity and furthermore implementing calculated yet risky, financially invested actions that exhibit this confidence in the public, validates self-confidence in the public and future inspires the community to change for the better.
I hope that in the near future, when scrolling through news articles, rather than witnessing the media stress stories of desolation and despair, that I instead become one of many who witness an emphasis on stories highlighting disruptive innovations that inspire the public to create further positive change and instill hope in Detroit’s future.
Link to the article: https://www.crainsdetroit.com/real-estate/jpmorgan-chase-funded-program-aims-convert-detroit-renters-homeowners