Banks Target Black and Hispanic Homebuyers for Mortgages2 min read
Many banks, mortgage companies and financial institutions are providing mortgages specifically targeting Black and Hispanic homebuyers.
These products are designed to reduce barriers that so often slow the rate of homeownership in Black and Hispanic communities. A recent bank survey found that 46% of respondents consider saving for a down payment to be a roadblock to buying their first home. This includes 44% and 45% of Black & Hispanic homebuyers, respectively.
New Opportunities for Black and Hispanic Homebuyers
For example, I read an article about TD Bank. They have lunched a product designed to increase homeownership opportunities in Black and Hispanic communities. They are covering an area spanning from Maine to Florida.
TD Bank calls their product Access Mortgage. It provides prospective borrowers with an affordable mortgage option. They are including a $5,000 lender credit that does not require repayment. Borrowers can use it this credit for closing costs or toward a down payment on a home purchase. This lender credit also helps offer black and Hispanic prospects more flexibility. Plus, it also provides a greater debt-to-income ratio. The bank is also expanding underwriting requirements as well as credit parameters that increase accessibility.
Michael Innis-Thompson, head of community lending and development at TD Bank, explained the following. “The current housing market is highly competitive. It makes it exceedingly difficult for potential homebuyers, especially people of color. Especially if they have limited financial resources for a down payment or closing costs”.
Because of this, other banks and financial institutions are also jumping on this bandwagon. These include JP Morgan. They have committed a total of $12 million to increase homeownership opportunities for Black, Hispanic, and Latino households.
Reaching Black and Hispanic Mortgage Customers
How can banks and mortgage companies reach black and Hispanic mortgage customers? Dataman Group has the solution for banks and mortgage companies offering these kinds of products. Dataman Group’s technology can customize a target mailing list that targets black and Hispanic mortgage homebuyers who meet a lender’s requirements. Criteria may include age, include, ethnicity, modeled credit, current homeownership or our custom first time homebuyer select.
Direct mail is a proven winner to reach out to this group. 79% of households say they read or scan direct mail. Additionally, direct mail is the most trusted marketing channel. 56% of customers say direct mail is trustworthy. That means mortgage companies looking to build trust need to invest in direct mail.
We all know that reaching customers through multiple marketing channels is the best way to go. Email addresses are available for a portion of the file.