This month is Hispanic Heritage Month. And to mark the start, earlier this week a major mortgage lender announced a pledge to originate $125 billion in loans over the next ten years, to assist in the National Association of Hispanic Real Estate Professionals’ (NAHREP) Hispanic Wealth Project. This announcement is timely, given that MBA and other stakeholders in the real estate finance industry have worked hard as of late to recognize the growing number of minorities, and in particular Hispanics, entering the U.S. housing market.
According to a recent report published by MBA in July, Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households, over the next ten years, household growth will be led by 5.5 million additional Hispanic households, more than any other racial or ethnic group. Two-thirds of the projected growth in population among Hispanics is for those age 40 and over, where the homeownership rate is greater than the current average rate of 46%. All of this means that demand from the Hispanic community for home financing is set to rise greatly in the coming years.
Indeed, NAHREP’s Hispanic Wealth Project promises to help both lenders and borrowers facilitate financing and boost the rate of Latino homeownership. And this past June, as part of the Hispanic Wealth Project, MBA announced a partnership with NAHREP to advance their goal of advancing sustainable Hispanic homeownership along with MBA’s commitment to offer training and education to prospective and current mortgage professionals. Two hopeful outcomes of this partnership will be to increase the rate of Latino home ownership to at least 50% and double the number of Latinos employed in housing finance over the next ten years.
But MBA’s commitment to recognizing diversity spans beyond our relationship with NAHREP. A few months ago we hosted our second annual Strategic Markets and Diversity Summit in Washington, D.C.
Our Diversity Summit commenced with three goals in mind:
- Educate attendees on the benefits of recruiting talented people from diverse backgrounds;
- Encourage people to have diverse vendors and suppliers; and
- Help the mortgage industry understand the country changing demographics in the coming decades.
Understanding tomorrow’s borrower is key for everyone in the housing industry. MBA is proud to be a thought leader committed to educating mortgage lenders on how best to serve minorities, as well as other traditional borrowers, in this ever changing landscape.