The Mortgage Bankers Association (MBA) along with 13 other leading industry groups formed a new organized charged with developing solutions to close the racial home ownership gap in America.
The initiative, called the CONVERGENCE Collaborative, will deploy more than $1 million annually over the next three years to build on the existing network of CONVERGENCE sites focused on expanding minority homeownership. The current CONVERGENCE cities – Memphis, Tennessee, Columbus, Ohio, and Philadelphia – are part of a major initiative launched by MBA in 2019.
“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,” Bob Broeksmit, MBA’s president and CEO, said. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
Along with MBA, the collaborative consists of the American Land Title Association (ALTA), DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, National Association of Realtors (NAR), Navy Federal Credit Union, Pulte Financial Services, Taylor Morrison Home Funding, U.S. Mortgage Insurers (USMI), and Wells Fargo Home Lending.
The national homeownership rates of Blacks and Hispanics have lagged that of Whites by well over 20 percent, on average, over the years. Despite significant public, private, and non-profit investments, these gaps have remained stubbornly high.
The goal of the CONVERGENCE Collaborative is to expand and utilize the CONVERGENCE network to create tools and roadmaps to help all industry stakeholders better reach aspiring minority homeowners. The collaborative intends to create a “Knowledge Community” to help inform new and innovative strategies, tactics, and partnerships.
“The housing industry coming together collaboratively is bringing fresh ideas and new approaches to address the homeownership gap in CONVERGENCE communities. As a result, this effort will have a lasting impact on generations of families,” Diane Tomb, ALTA’s CEO, said. “As longstanding partners in CONVERGENCE, we’ve seen firsthand the value of this approach.”
“USMI’s members work every day to help borrowers overcome one of the biggest barriers to homeownership for first-time, low- and moderate-income, and minority homebuyers: the need for a large cash down payment,” said Seth Appleton, USMI’s President. “We welcome the opportunity to partner with the CONVERGENCE Collaborative on collective strategies to support sustainable and affordable homeownership for underserved communities across the country.”
Officials say this initiative is both an economic and moral imperative, as a more robust, balanced, and fair housing market benefits everyone.
“The launch of the CONVERGENCE Collaborative marks a pivotal step in our commitment to bridging the racial homeownership gap,” Kevin Sears, NAR president, said. “By uniting these leaders from across the industry, we are not only addressing systemic barriers in housing but also fostering lasting change in communities across this country. Together, we can empower aspiring homeowners with the tools and resources they need to achieve the dream of homeownership.”