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Ep. 31 — A single mother of two young sons takes lessons from her grandfather, a small-time hustler turned big-time property owner, about the value of homeownership / Katrina Jones, VP, Single Family Mortgage Business, Fannie Mae.
When her husband passed away at a young age, Katrina Jones was left to raise two kids, forcing her to drop out of college to confront her new responsibilities. It would prove to be the most challenging time of her life.
What kept Jones going was not just the support she got from her extended family but lessons from her grandfather, a street-smart hustler named George Carter.
Born on a plantation in 1990, Carter was the son of a former slave who knew he was destined for something bigger. So he dropped out of school at age 12 and ran away from home to Washington D.C., determined to make a life for himself.
Strong-willed and stubborn, Carter slept on streets and did a bunch of odd jobs and side hustles, hauling trash and fixing stoops, convincing people to take a chance on him. Unbathed and unkempt as he was, many turned him away. But others gave him a shot.
Little by little, Carter put away the dough to start buying property. His first parcel of land was in Arlington, Virginia, bought for $175, mortgage payment of about $10 a month. Not knowing how to read or write, he signed for it with an X, proud to be able to give his young wife, the woman of his dreams, the home she wanted to raise her family.
“There was nothing traditional about that house, five doors, more than 30 windows,” remembers Jones with a laugh, “There were always two kitchens, one upstairs for the winter and one downstairs for the summer. No central air conditioning. Windows were just open, put in a screen with some netting. It was just what we called, that's a scrappy house to go with the scrappy gentleman, who managed to fulfill his wife's dream of creating a home in Arlington where she could raise her family.”
Over the decades, quietly and confidently, Carter acquired property, lot after lot — bought or a relative pittance by today’s housing prices — working his street hustles and sweat equity. Today those lots are worth millions.
For Jones, it was entirely accidental that she ended up in the housing business. But it’s only made her appreciate even more the priceless legacy her late grandfather left for his family.
A recent Forbes piece says a lack of home equity in black families is one big reason for the racial wealth gap between blacks and whites, analyzing 2016 data. “African-Americans on average had home equity of less than $12,000 in September. White households in comparison had average home equity of almost $189,000 then,” wrote author Christian Weller. “Black households on average own only about six percent the housing wealth of white households.”
Today, Millennials are also struggling with many challenges with homeownership, including lack of savings, debt, and lack of affordable housing.
“I think the way people live is changing, where they want to live is changing, how they want to live is changing and our industry needs a bit of re-imagining to consider, how do we meet the needs of today's generation of future homeowners and tomorrow in a new, different way,” says Jones. “Hopefully we figure that out, but I think affordable housing is a big challenge for us right now. I see it play out in my own family.”
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Chitra Ragavan: When Katrina Jones' husband passed away at a young age, she was left to raise two kids on her own, forcing her to drop out of college to confront her new responsibilities. It would prove to be the most challenging time of her life.
Chitra Ragavan: Hello everyone, I'm Chitra Ragavan and this is When It Mattered. This episode is brought to you by Goodstory, an advisory firm helping technology startups find their narrative.
Chitra Ragavan: When her husband died, what kept Jones going was not just the support she got from her extended family but lessons from her grandfather, a street smart hustler who left a priceless legacy. Joining me now is Katrina Jones, Vice President of the single family mortgage business at Fannie Mae. Jones has worked in the mortgage/finance industry for more than 30 years, where she has spearheaded efforts to make the dream of home ownership a reality for Americans. Jones has been recognized and honored for her advocacy of home ownership as a wealth creation tool for generations. Katrina, welcome to the podcast.
Katrina Jones: Thank you for having me. I appreciate it.
Chitra Ragavan: Tell us a little bit about yourself.
Katrina Jones: Oh, I'm the oldest of five kids, only girl, and grew up in a military family. I was born in Fort Dix, New Jersey, and lived just about everywhere. And when my dad moved back here to Washington, D.C., he retired at Fort Myer, so I call D.C., affectionately, my home.
Chitra Ragavan: And how did you end up in the housing business and here at Fannie Mae?
Katrina Jones: Oh, well, everybody who gets into the housing industry, we typically get into it by accident. I happened to have the opportunity when I was a contractor, very young in my work life, to work for a mortgage company helping people get a home, processing loans for mortgages. And quite honestly, loved it largely because of the impact that I was having. Had no idea what I was doing, but I learned fast and spent a lot of time in a primary mortgage industry. When my grandmother passed in the late nineties, I decided to move back to home where the nucleus is and had an opportunity to interview for a position here at Fannie Mae, where I was hired and have been here for the last 25 or so years.
Chitra Ragavan: Your success in life was shaped in some significant way by your grandfather. Tell us a little bit about who he was and why he became such an important figure in the family.
Katrina Jones: My grandfather, our patriarch, he was born in 1990 on a plantation. He's a son of a previous slave, and he prided himself on the fact that at a very young age he knew he was different. He knew he was strong-minded and stubborn. And he ended up dropping out of school, believe it or not, in the second grade and running away from home at the tender age of 12. He lived down in an area called Culpeper, Virginia or Caroline County, Virginia, which is south of Fredericksburg, a little north of Richmond, but far enough to be far from D.C. He walked from Caroline County to Washington, D.C.
Katrina Jones: And so I asked my mom what was in Washington, D.C. She said, "Well, you know your grandfather, he was a hustler. Jobs were in Washington, D.C." A new opportunity and hope for a future was in Washington, D.C., so he settled down in D.C. Had an opportunity to get some odd jobs when he was young; and I think for him, that's been his entrepreneurialship and hustler will stepped in because this is a 12-year-old kid who's trying to feed himself and look for an opportunity to survive.
Chitra Ragavan: What was his name and how did he survive?
Katrina Jones: George Carter, he was the second oldest of eight children. I will tell you my grandfather survived because he had passions in life: God, family, and just a view of being a hustler. Always willing to do the jobs that no one else will do; but, more importantly, doing them better than anyone else would do it. I think for him, that's how he survived. And I think for him being here in Washington, D.C., giving him an opportunity to set a new chapter for himself. And I say new chapter, remember, he's only 12, setting a new chapter for himself and a city where I'm so excited he came here because it opened up worlds of opportunity for our family.
Chitra Ragavan: Tell me some of the jobs he held starting from the age of 12. I mean, what did he do to survive and what was his hustle? What were the street hustles?
Katrina Jones: Yeah. Oh yeah. My mother would share with me all the things he did. I didn't even know they existed back then, but trying to be a busboy and cleaning out garbage cans on the street and laying train tracks around the Washington, D.C. Area. Remember, there were some streetcars here in Washington, D.C., so laying down street cars, keeping the streetcar rails clean. It's manual work, self-learner. And I would also offer self-learner because remember he dropped out of school in the second grade, could not read, could not write very well, but knew enough to be street smart and had a wicked sort of common sense about him.
Chitra Ragavan: And did he sleep on the street?
Katrina Jones: Of course, of course. Slept on the streets, slept in hallways, slept in lobbies when they allowed them to be in lobbies. But again, this is a person who recognized that he's going to have to do what he had to do. And my mother would tell me stories about him asking for positions or jobs. And as you can imagine, you're sleeping on the street, probably not taking a lot of baths. Cleanliness is probably not top of mind. And she said people would just look at him and turn him away.
Katrina Jones: But every now and then someone will say, "Well, come in if you think you can do this, we'll give you a trial period." Would not pay him, by the way. Would not pay him, but he would come in and be so impressive with his ability to learn, his ability to be self-driven, his ability to really take whatever challenges that came his way and made it his own and make it successful. My mom laughed. He would be able to get a job in no time because people saw, "Oh, I didn't know what I had." It was a diamond in the rough.
Chitra Ragavan: And he was a bit of a ladies man, wasn't it?
Katrina Jones: Oh, most definitely. Before he met my grandmother, he was previously married and he apparently went on a double date. I said, "But mom, he was married." Yes, he went on a double date with one of his brothers....