The Mortgage Bankers Association (MBA) on Monday announced the launch of a new initiative involving 12 other corporate stakeholders. The entities will seek to find potential solutions for closing the racial homeownership gap.
The new initiative comes in the form of a group called the “CONVERGENCE Collaborative,” which is a “coordinated effort to identify and develop solutions to help close the racial homeownership gap,” according to an announcement published by MBA. The group is committing more than $1 million per year “to build on the existing network of location-based CONVERGENCE sites focused on expanding minority homeownership.”
In addition to MBA, the organizational roster includes the American Land Title Association (ALTA), DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, the 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.
Each of these organizations will have “an equal say in key strategic and operational decisions,” with the overarching goal to leverage the resources, expertise and perspectives of everyone in pursuit of the larger goal.
“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,” MBA president and CEO Bob Broeksmit said in a statement. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
The CONVERGENCE initiative was originally launched by MBA in 2019. It aims to unify the perspectives and resources of nonprofit, public and private sector partners in pursuit of closing “the information, trust, market and resource gaps that create barriers to homeownership for Black, Hispanic, and other underserved consumers,” according to the MBA. There are three active pilot sites in the cities of Memphis, Tennessee; Columbus, Ohio; and Philadelphia.
“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.”
The announcement called giving attention to these longstanding issues “both an economic and moral imperative,” adding that a “more robust, balanced, and fair housing market is also a more stable and prosperous one – it benefits everyone.”
Participants hope that lasting change emerges from the renewed attention.
“The launch of the CONVERGENCE Collaborative marks a pivotal step in our commitment to bridging the racial homeownership gap,” NAR President Kevin Sears said. “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.”
