Association and partners launch initiative to improve opportunities for minority communities
The Mortgage Bankers Association (MBA) has rolled out CONVERGENCE Collaborative, a new initiative aimed at addressing the racial homeownership gap in the US.
Over the next three years, the collaborative will invest more than $1 million annually to develop and implement strategies to boost homeownership among minority communities.
This effort is part of MBA’s broader CONVERGENCE initiative, which was first launched in 2019, and focuses on bringing together a wide range of partners from the private, public, and non-profit sectors to tackle barriers that prevent Black, Hispanic, and other underserved communities from becoming homeowners.
The ongoing program has established partnerships in three key cities (Memphis, Tenn., Columbus, Ohio, and Philadelphia) where efforts to expand minority homeownership are already underway.
According to MBA’s news release, the pilot programs in these cities provide potential homebuyers with tools like down payment assistance finders and homebuyer education courses, both online and in-person, designed to make the homebuying process more accessible and manageable.
“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,” said MBA president and CEO Bob Broeksmit. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
The CONVERGENCE Collaborative is made up of 13 major industry stakeholders, including the American Land Title Association (ALTA), Fannie Mae, Freddie Mac, Wells Fargo Home Lending, and the National Association of Realtors (NAR). The group will work collectively, pooling their resources and expertise, to drive strategies that address the racial disparities in homeownership.
Several industry leaders have expressed their commitment to the collaborative.
"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,” said Diane Tomb, CEO of ALTA. “As longstanding partners in CONVERGENCE, we’ve seen firsthand the value of this approach.”
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Seth Appleton, President of the US Mortgage Insurers (USMI), emphasized the importance of helping first-time, low- and moderate-income, and minority homebuyers overcome the challenges of securing a down payment
"The launch of the CONVERGENCE Collaborative marks a pivotal step in our commitment to bridging the racial homeownership gap,” NAR president Kevin Sears added. “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."
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