RISMEDIA, May 14, 2007-New Vista Asset Management, a nationwide minority-owned asset management company, recently launched an initiative to turn REO properties into affordable housing solutions that increase minority homeownership across the country. Nationally recognized, minority-housing experts Gary Acosta and Jim Park own the company and will lead the effort that will include a nationwide network of non-profit counseling agencies and minority real estate and mortgage professionals.Acosta, who is founder of the National Association of Hispanic Real Estate Professionals (NAHREP), a leading advocate for Hispanic homeownership and a career mortgage banker, is chairman of the San Diego-based company. Park, who has worked at FHA, Freddie Mac and numerous community development agencies and is also the current head of the Asian Real Estate Association of America, is President of the company.
“New Vista’s mission is to turn a bad situation into a positive one by using REO properties to create more affordable housing opportunities for minority homebuyers and other under-served populations,” says Park.
The company’s overall strategy is to leverage its broad connections within the minority real estate practitioner community, nonprofit housing and counseling network and mortgage industry to create a source of housing that will be accessible to first-time homebuyers in the underserved community. Acosta and Park are working with leading lenders to create loan programs suitable for first-time minority homebuyers that will be a important component of their strategy to increase minority homeownership.
The timing for the company’s model couldn’t be better. Minorities have shouldered the brunt of the losses in the subprime mortgage market meltdown with significant numbers of the higher-cost loans to Blacks and Hispanics expected to end up in foreclosure. Community advocates are concerned about the long-term impact of foreclosures on minority neighborhoods and that investors – not underserved families – will buy up vacant homes.
“Investors have played an important role by infusing capital into these communities in the past,” said Park.” But with so many minorities losing their homes in the current housing environment, we must work these communities to turn foreclosures back into the hands of families with deep roots in these neighborhoods.”
New Vista Asset Management is the first national REO management company of its kind to approach the foreclosure market with an integrated minority homeownership strategy that uses inventory to create sustainable homeownership for traditionally underserved families. The merits of the company’s plan are already gaining support within the industry. Freddie Mac recently added the company to its alliance of preferred providers as part of its effort to better support member banks of the American Banker’s Association.
“I am excited to be a part of this important alliance between Freddie Mac and ABA. I believe this opportunity will give us broad exposure with banks that share our ethos and want to participate in a solutions-driven community development endeavor that turns unfortunate foreclosure problems into wins for lenders, minorities and first-time home buyers,” adds Park. “Done correctly, we can actually help lenders meet their CRA obligations and further enhance their supplier diversity goals.”
For more information about the company, go to www.newvistareo.com.
