Here’s what these companies are doing to increase Hispanic homeownership
Plan to triple Hispanic household wealth by 2024
The Hispanic Wealth Project, a plan to triple Hispanic household wealth by 2024, announced the addition of several partners for 2017.
Hispanics are currently the fastest growing demographic in the real estate market as the group accounted for nearly 75% of all homeownership rate growth in 2016.
The HWP focuses on three component goals including advancing sustainable homeownership, improving the success of Hispanic entrepreneurs and increasing Hispanic investments in non-cash financial assets. Partners of the HWP contribute to these goals by sponsoring and fulfilling initiatives with the HWP.
The HWP recieved several new commitments from various banks and lender for 2017.
Wells Fargo joined the project with its pledge to make $125 billion in mortgage originations to Hispanic homebuyers. It also committed to substantially increase the number of Hispanic home mortgage consultants it employs, and will contribute $10 million in funding grants to promote financial education and counseling for first-time homebuyers.
At the National Association of Hispanic Real Estate Professionals 2017 Housing Policy and Hispanic Lending Conference in March, many panelists explained that hiring more Hispanics will help lenders better understand the needs of the population as well as help reach that population on a cultural level.
And United Wholesale Mortgage recently conducted a study which shows the key to not just Hispanic homeownership, but all first-time homebuyers, is education.
But Wells Fargo wasn’t the only company to join the HWP. Freddie Mac and MassMutual Financial Group each committed to projects aimed at increasing knowledge and participation in savings and investments among Hispanic families and providing opportunities for affordable homeownership.
Freddie Mac will serve the Hispanic population through its Home Possible Mortgage, and the Affordable Home Loan Solution, which allow homebuyers to purchase a home with only 3% down. In fact, the GSE is working with Bank of America to provide these products to low- to moderate-income families.
Bank of America, Quicken Loans and Union Bank dedicated resources to support the project through the promotion of programs aimed at increasing Hispanic homeownership and small business ownership. All three of these companies have supported the project since its inception.
New American Funding also aligned with the HWP to bring career opportunities and mortgage financing to Hispanic homebuyers.