Mortgage Bankers Association (MBA) and National Fair Housing Alliance (NFHA) officials are touting the launch of an online toolkit to aid in addressing the racial homeownership gap.
The resource is for mortgage lenders interested in developing Special Purpose Credit Programs (SPCPs), which authorities noted permit lenders to offer mortgage credit to economically and socially disadvantaged borrowers.
“MBA is committed to bringing the mortgage industry together to develop effective policy and resources to help to close the racial homeownership gap,” MBA President and CEO Bob Broeksmit said. “We have been at the forefront of encouraging regulators, the GSEs, lenders, and other industry stakeholders to enable the creation of SPCPs to increase mortgage credit availability to underserved communities.”
The online toolkit is designed to provide guidance and data analysis for mortgage lenders interested in using SPCPs to serve economically disadvantaged communities as well as minority borrowers, most of whom lack the generational wealth to fund a down payment.
The resource provides background information, best practices and guidance, industry examples, data, and links to help mortgage lenders in SPCP development.
“NFHA has championed Special Purpose Credit Programs as an excellent tool for expanding credit access for underserved markets, including consumers who live in credit deserts and are credit invisible,” NFHA President and CEO Lisa Rice said. “Our collaboration in developing the SPCP toolkit demonstrates that NFHA and the MBA share a commitment to promoting justice, fairness, inclusion, and equity. We also share a commitment to strengthening communities, increasing sustainable homeownership, and growing our economy.”
Rice said the NFHA encourages lenders to use the toolkit to develop programs to better serve borrowers of color, women, people with disabilities, and other underserved groups.