Linda Stamato argues that first-time homebuyers, regardless of wealth, are facing critical funding challenges and are being deemed “high risk” and denied loans. In New Jersey, the problem is overlooked, with discriminatory practices like redlining still affecting access for some. Corporate home buying and a lack of affordable housing further widen the racial wealth gap.
In order to help people not earning quite enough to qualify for a private loan, Stamato advocates for the creation of public banks, as promised by Gov. Murphy in Executive Order 91. Public banks would provide capital for affordable housing and assist underserved communities; they can take on more risk, offer low-interest loans, and prioritize social good over profits, unlike commercial banks. She emphasizes the need for public banking to combat predatory practices like seller-financed home sales and to create more equitable access to homeownership. Without public banking, she believes the state is missing a significant opportunity to support those struggling to secure housing.