Through a new policy initiative titled, “Building Generational Wealth Through Homeownership,” the Mortgage Bankers Association has taken another step in its efforts to help reduce the racial homeownership gap.
The policy initiative’s goals are to provide industry leadership and direction to reduce the gap; develop and support policies that encourage sustainable homeownership for communities of color; and promoting fair, equitable, and responsible lending for minority borrowers.
“Homeownership is often the largest source of intergenerational wealth for families,” 2021 MBA Chairman and SWBC Mortgage Corp. CEO Susan Stewart said in a release. “MBA’s new policy initiative serves as a perfect foundation to level the playing field. The mortgage industry has a responsibility to promote minority homeownership by partnering with key stakeholders to remove barriers and support financial education and counseling, with a goal to close the racial homeownership gap and increase generational wealth among minority households.”
To reduce barriers for minority first-time buyers and support opportunities for minority homeowners to maintain homeownership, the MBA will:
- Advocate for increased access to affordable financing options to expand the pool of minority borrowers eligible for government-sponsored enterprises (GSE) financing.
- Lead advocacy for regulatory clarity and provide industry support of special purpose credit programs.
- Support down payment options for Black and Hispanic borrowers that address the lack of generational wealth.
- Evaluate options for the GSEs, Ginnie Mae, and Treasury to expand secondary market pools and programs that would benefit minority borrowers and communities.
- Support home retention options for Black and Hispanic homeowners that assist them with maintaining homeownership and accumulating generational wealth.
- Support pathways to homeownership for Black and Hispanic borrowers who have been previously denied mortgage financing.
The MBA also will support counseling and financial education for homebuyers and homeowners. Its plan requires leading and supporting legislative initiatives to fund counseling agencies and similar organizations that provide pre- and post-home-buying services and raising awareness with minority homeowners of the available resources to improve affordability and maintain homeownership.
“MBA is uniquely positioned to harness its internal and external resources to help more minority families become homeowners,” MBA President and CEO Bob Broeksmit said. “Through industry advocacy and partnerships with housing experts, consumer groups, nonprofits, and civil rights organizations, our industry will focus on eliminating obstacles and shaping policy to promote and increase minority homeownership.”