A joint initiative launched by more than a dozen industry trade groups and institutions is seeking to expand its network created to develop solutions to help reduce racial disparities in homeownership. Dubbed the CONVERGENCE Collaborative, the partnership was established in 2019 to create data-driven tools and strategies for industry stakeholders committed to better serving aspiring minority homeowners.
Recognizing that, for decades, Black and Hispanic homeownership rates have been more than 20 percent lower than those of white households, the CONVERGENCE Collaboration plans to allocate more than $1 million annually over the next three years toward expanding its network geared to increase minority homeownership.
“The barriers to minority homeownership require a collective effort. In recognition of this challenge, we believe the approach embodied in the CONVERGENCE framework can have a greater impact with this new industry partnership,” Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit said in the release. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
In addition to MBA, the partnership includes the American Land Title Association, DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, the National Association of Realtors, Navy Federal Credit Union, Pulte Financial Services, Taylor Morrison Home Funding, U.S. Mortgage Insurers, and Wells Fargo Home Lending. All stakeholders will have an equal voice in key strategic and operational decisions, with the goal of combining their resources and expertise to make a greater impact, according to a press release.
CONVERGENCE currently operates in cities such as Memphis, Tenn., Columbus, Ohio, and Philadelphia. These initiatives are intended to facilitate collaboration between local and national partners from the private, public, and non-profit sectors to address the information, trust, market, and resource gaps that limit homeownership for Black, Hispanic, and other underserved groups, the release stated.
The pilot sites were established to build on existing tools and resources while experimenting with new approaches to improving homeownership access. They offer a variety of tools, such as a down payment assistance finder and in-person homebuyer education courses.
As part of its latest push, the partnership will develop a “Knowledge Community,” using the network’s findings to inform innovative approaches and partnerships to close the homeownership gap.