The Mortgage Bankers Association (MBA) and 13 industry stakeholders announced the formation of the CONVERGENCE Collaborative, a coordinated effort to identify and develop solutions to help close the racial homeownership gap. Over the next three years, the CONVERGENCE Collaborative will deploy more than $1 million annually to build on the existing network of location-based CONVERGENCE sites focused on expanding minority homeownership.
MBA will be joined in the CONVERGENCE Collaborative by 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, a release noted.
“The barriers to minority homeownership require a collective effort,” said Bob Broeksmit, MBA’s president and CEO. “In recognition of this challenge, we believe the approach embodied in the CONVERGENCE framework can have a greater impact with this new industry partnership. By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
The current CONVERGENCE cities–Memphis, Tennessee, Columbus, Ohio, and Philadelphia–are part of an initiative launched by MBA in 2019. MBA explained CONVERGENCE initiatives involve cross-sector partnerships featuring local and national partners from the private, public and non-profit sectors working together to close the gaps that create barriers to homeownership for Black, Hispanic and other underserved consumers.
MBA stated these pilot sites will amplify and leverage existing tools and resources as well as test and incubate new solutions to improve access to homeownership. Homebuyers utilizing these programs will have access to both online tools, such as a down payment assistance finder and in-person resources, such as homebuyer education courses.
For decades, the national homeownership rates of Blacks and Hispanics have lagged that of Whites by well over 20 percent, with much larger gaps in some markets, MBA noted. Despite public, private and non-profit investments, these gaps have remained high. The challenge of closing these gaps becomes more urgent considering that most new households formed over the next two decades will be comprised of people of color, MBA stated, adding that the Collaborative will focus on the intersection between business development and expanding socioeconomic opportunities for historically underserved people and communities.
“This focus is both an economic and moral imperative,” MBA stated. “A more balanced and fair housing market is also a more stable and prosperous one–it benefits everyone.”
“The launch of the CONVERGENCE Collaborative marks a pivotal step in our commitment to bridging the racial homeownership gap,” said Kevin Sears, NAR president. “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.”
Learn more about the CONVERGENCE Collaborative at www.mba.org/convergence.
