The landscape of diversity, equity, and inclusion (DEI) initiatives is becoming increasingly fragile as legal challenges, like those spearheaded by conservative activist Edward Blum, threaten to dismantle programs aimed at promoting inclusion. These challenges, rooted in arguments against affirmative action and race-conscious policies, have already impacted college admissions and could soon extend into various industries, including mortgage and financial services.
A Historical Perspective
To understand the current situation, it’s essential to revisit the origins of civil rights laws in the United States. The Civil Rights Act of 1866, established in the aftermath of the Civil War, aimed to protect the rights of all individuals, regardless of race. Section 1981 of the act, which ensures the right to make and enforce contracts without racial discrimination, is now being leveraged by Blum’s organization, the American Alliance for Equal Rights (AAER), to challenge corporate diversity programs.
Blum, who played a pivotal role in ending affirmative action in college admissions, argues that DEI programs that involve racial preferences are unconstitutional. His efforts have already targeted diversity fellowships at major law firms and venture capital funds supporting Black women entrepreneurs.
Implications for the Mortgage Industry
Leaders in the mortgage industry, such as Tai Christensen, President of Arrive Home, are deeply concerned about the ripple effects of these legal challenges. Christensen, who has spent two decades advocating for underserved communities through down payment assistance and nontraditional credit programs, fears that the ongoing assault on DEI initiatives could stifle innovation and inclusion in the industry.
“One thing I worry about specifically with the housing industry is losing the messaging that people of color do need to be brought into the homeownership fold [to] close the racial wealth gap,” Christensen explains. She has seen firsthand the disparities in homeownership opportunities between white and Black, Indigenous, People of Color (BIPOC) communities. The potential for litigation could make companies hesitant to create new programs aimed at bringing diverse people into the housing market.
The Role of Leadership in Upholding DEI
Toniqua Green, Vice President of Corporate Social Responsibility at Mr. Cooper, echoes these concerns, noting that the impact of the affirmative action case on DEI initiatives is still uncertain. However, she emphasizes the importance of leadership in maintaining and supporting these programs. “While we and a lot of organizations have DEI programming, if you don’t have full buy-in from your top leadership, then it makes it very easy for this type of cancerous situation to bleed in,” Green says.
Both Green and Christensen argue that marketing and outreach efforts aimed at underrepresented communities should not be seen as discriminatory but as essential tools for promoting equity. “Do [we] not put Black and brown borrowers on [our] flyers anymore?” Christensen asks. “Extending a message to a certain group of people isn’t discrimination. That is just advancing your message for that community in a way that is meaningful for them.”
Representation and Equity Matter
At the heart of the debate is the distinction between equality and equity. Equality suggests that everyone starts from the same place, but equity recognizes that individuals have different circumstances and may need different resources to achieve the same goals. As Christensen puts it, “When people say that everybody should be starting from the same spot, that’s not fair because our ancestors didn’t even start out on the same playing field.”
As the legal landscape continues to evolve, the mortgage industry must remain vigilant in its commitment to DEI initiatives. The challenges ahead may be significant, but the pursuit of equity and inclusion remains a critical goal for creating a fair and just society.
Original Article: https://nationalmortgageprofessional.com/news/fragile-world-inclusion