New American Funding Pledges $25 Billion in New Mortgages for Hispanic Homebuyers
New American Funding has joined the National Association of Hispanic Real Estate Professionals (NAHREP) in their initiative to increase sustainable Hispanic home ownership. The national mortgage lender has promised an impressive $25 billion in new mortgages to the cause.
Approximately 14% of homebuyers in 2016 financed their purchase with a mortgage, and New American Funding wants to help that number grow. Rick Arvielo, CEO of New American Funding, has commented that the company is dedicated to helping communities and homeowners thrive.
“We’re a community-driven lender and we believe this alignment is a way to enrich lives and make a positive impact on Hispanic communities,” Arvielo said in a public statement.
According to a press release, there are three initiatives within the NAHREP’s larger project, which will span from the present to 2024.
First, the organization will provide direct mentoring to a total of 500 Hispanic-owned businesses in California by 2024. In addition to providing a direct line of education, this initiative will tie into an annual Hispanic Small Business Summit at New American Funding’s headquarters in California. Not only will this summit feature small business owners, it will provide an opportunity for business owners attending to learn from business leaders in the community.
The organization’s second goal is to increase Hispanic homeownership in particular. This is where New American Funding’s large contribution comes in. With the $25 billion in new mortgages pledged to this project, this goal isn’t so lofty.
After the Great Recession and housing crisis, new housing projects have slowed way down while renovation and home improvement spending has increased. Among current homeowners renovating their homes, 81% are investing in bathroom remodeling projects. As a result, many cities have a lack of supply for first time buyers looking for affordable starter homes.
While this initiative won’t help current homeowners, it will certainly help aspiring homeowners struggling in this pricey seller’s market. In addition, the mortgage company will dedicate resources to educating real estate professionals on cultural practices and values within the Hispanic community.
Finally, this project will help increase the number of Hispanic individuals in the mortgage industry. While helping the community increase home ownership is a great start, the end goal is an even more sustainable one. By 2024, the organization plans to bring on 1,000 Hispanic individuals as entry level mortgage professionals.
“This commitment is vital in attending to the needs of the future homebuyer and part of our personal mission to empower the Hispanic community. We are very proud to join the efforts of NAHREP,” Patty Arvielo, President and Co-Founder of New American Funding said in a press release.