Turning a Dream into Reality for Minorities
Executive Summary
Homeownership for minorities is a dream, not a reality. Large gap in homeownership between Whites and African Americans and Hispanics population
Average 26.7% behind White homeownership
Major misconceptions about lending process and unfair lending practices contribute to minority homeownership rate gaps Identify and correct the issues – increase market share, revenue and homeownership rates. Keep the dream alive
Educate consumers Provide flexible and innovative products and services
Minority Population: Fast Pace Growth
Black and Hispanic communities account for 81.5% of total minority population by 2025 Hispanics - fastest growing race in U.S.
Estimated figures
Percent
Source: U.S. Census Bureau www.census.gov
Minority Homeownership: Trailing the Pack
Source: U.S. Census Bureau www.census.gov
Trends in Minority Lending – Lending Process Misconceptions and Unfair Practices Lead the Way
Lending at or below year 2000 levels High cost loans carry a high price
African Americans 2.3 times more likely to default Hispanics 2 times more likely to default
Prime-qualified minorities receiving subprime rates Minorities 2.5 times more likely to get declined for primary mortgage
The Time to Act is Now!
Reaching Minority Markets – Where do we Start?
Community outreach marketing Establish relationship with institutions Flexible products and services
Alternative credit analysis and related products Down payment / closing cost programs
Reaching Minority Markets – Trusted Advisors
Raise homeownership awareness
Educate on process, rights and steps
Provide dedicated before, during and after loan support and counseling
Credit counseling, budgeting basics Mortgage support hotline Bi-yearly follow-ups; first 3 years
Reaching Minority Markets – Why?
Develop and meet needs of large (and growing) customer base Bottom line growth Increased market share Stewards of humanity
Provide socio-economic opportunities to minorities
Close the Gap: Make The American Dream a Reality