Fight for racial equality is a personal and professional passion
As the mortgage industry grapples with longstanding issues of racial disparity, Black History Month serves as a powerful reminder of the work still needed to foster true equity. Data from the Federal Reserve Bank found that in 2018 and 2019, about 18 percent of Black mortgage applicants were denied by lenders, more than twice the rate of White applicants. What’s more, Urban Institute found that Asian (16.2% ) and Black (15%) applicants are more likely to withdraw their mortgage applications.
Recognizing the need to enhance diversity
For Dr. Jennifer Gormer (pictured), owner of Integrity Home Lending and founder and CEO of Black Mortgage Professional Alliance (BMPA), this fight for racial equality is a personal and professional passion.
"Ironically, the mortgage industry has actually recognized the critical need to enhance diversity, particularly in leadership positions," Gormer said. "Some initiatives, such as the National Association of Mortgage Brokers (NAMB) and the National Association of Minority Mortgage Bankers of America (NAMMBA), exemplify at least the starting efforts to promote diversity, equity, and inclusion within the industry. However, we always can do more. This is why I founded Black Mortgage Professional Alliance (BMPA)."
One significant effort in addressing representation is outreach to historically Black colleges and universities (HBCUs).
"Other organizations like Home Free USA have established programs to collaborate with HBCUs to attract and develop young Black professionals to come into the mortgage sector," Gormer said. "Most students don’t say, 'I'm going to college to be a mortgage broker or loan officer' – because they don’t even realize it’s an option. Awareness, training, and providing pathways for internships are crucial. At BMPA, we are creating a national internship program to lead the effort to bring more young adults into the mortgage industry; and then, a mentorship program to provide the leadership and guidance needed for new mortgage professionals to be successful."
‘We're pivotal in bridging that racial wealth gap’
The racial wealth gap remains one of the most persistent economic disparities in the United States. Homeownership is widely recognized as the key to generational wealth, yet Black families continue to face disproportionate barriers in accessing mortgage opportunities.
"As mortgage professionals, we're pivotal in bridging that racial wealth gap by facilitating homeownership," Gormer said. "Where else can you build wealth and earn $100,000 to $200,000 in five to 10 years? In several places in the United States, particularly here in Texas, real estate offers this opportunity. You can’t get that kind of return in stocks anymore."
Programs like the Mortgage Bankers Association's Building Generational Wealth through Homeownership initiative aim to address these barriers by equipping Black families with financial literacy and access to tailored loan products.
"Many people don’t know about these programs, but they’re out there," Gormer said. "Our job is to educate and empower so that Black families can make informed decisions that will positively impact their futures. I’ve worked with some of the top five banks in the country, and I’ve seen firsthand the variety of programs that are making an impact. One of the largest collaborations was launched by the Mortgage Bankers Association with 13 leading industry stakeholders. This campaign invests over $1 million annually in expanding minority homeownership."
‘More is needed’
And partnerships between organizations such as NAMMBA and Rocket Mortgage are also helping advance diversity within the industry.
"There is outreach. There are financial institutions that care and understand the need. But more is needed – especially more awareness," Gormer said. "If people don’t know there’s support, education, and financial resources available, the wealth gap will continue to grow instead of shrink."
Reflecting on Black History Month, Gormer emphasized the importance of accountability in creating equitable opportunities for both Black professionals and home buyers. "If we can talk about emotional intelligence and relationship intelligence, then we need to talk about equity and inclusion, too," she said. "Every American deserves to own a home, regardless of their background.
“The National Urban League reported that by 2040, African Americans and Hispanics will be the leading demographic in homeownership. That means in about 16 years, the current minority will become the majority. How can that happen if we don’t have measurable goals to increase diversity, implement unbiased lending practices, and educate future homeowners?"
Moreover, reports from the National Association of Realtors highlight that Black and Hispanic borrowers face disproportionately higher denial rates and predatory lending practices.
"African Americans and Hispanics are receiving 72% of all predatory lending and mortgage denials. That is alarming," Gormer said. "If we don’t take steps to correct these issues, we are failing entire generations.
"We need clear, measurable goals for diversity and inclusion," she said. "The data speaks for itself. Whether we like the term 'diversity' or not, the reality is that the industry must adapt to reflect the future of homeownership."
