The COVID-19 pandemic brought life as we know it to a screeching halt, and we’re still adjusting to our new normal, both personally and professionally. In the midst of that ongoing transition, we have also been faced with the lingering effects of racism and systemic oppression — making the rallying cry of “Black Lives Matter” as relevant as it was at its inception.
The Black Lives Matter (BLM) movement was founded in 2013 after George Zimmerman, the man who shot and killed Trayvon Martin, was acquitted. The movement is on a mission to “eradicate white supremacy and build local power to intervene in violence inflicted on Black communities by the state and vigilantes,” according to its website.
While avoidable and unfortunate events such as the sudden deaths of Breonna Taylor and George Floyd underscore how necessary BLM and similar movements are, it’s important to remember all of the ways — aside from civilian and police interactions — that Black lives should matter, including in the mortgage space.
As mortgage banking professionals, we can help make or break whether Americans are able to build the wealth that often comes from homeownership. When the Black homeownership rate, which is currently 44%, continues to lag severely behind the white homeownership rate of nearly 74%, it’s clear there’s more work to do.
We should go the extra mile to ensure we’re matching mortgage applicants with the best mortgage products for them. In the event that they don’t yet qualify, it’s helpful to share actionable tips to provide them with a path forward to eventually get a mortgage.
The discriminatory practice of redlining has robbed Black families of more than $200,000 in home equity over the last four decades. Many of the same “hazardous” neighborhoods on those old redlining maps still have lower levels of investment today, when compared with the “best,” predominantly white neighborhoods that often flourish. It’s our responsibility to continue reversing the negative impacts of housing discrimination.
Lastly, we have to make room in our underwriting operations to accept alternative credit data, including rent and utility payments. Including this data can help open up homeownership opportunities for those who may not have thought it possible.
If we implement the above steps across the mortgage industry, we can make significant progress toward closing the homeownership gap and helping more families build wealth.