DS News

56 ability to do so effectively will be a critical indicator of progress as a society. Fuentes' story exemplifies the way representation within the industry can increase opportunities for homeownership and wealth building in historically underserved communities. "We have to bring more mortgage people of diverse backgrounds to the industry," he said, adding that this goes for sales, marketing, underwriting, and every other position in an office. Moreover, companies must be willing to apply resources and understand that making homeownership a possibility for a more-diverse array of qualified borrowers can take more time. As America's homeownership rate continues to rise overall, the Black-white homeownership gap in early 2021 stood at 28.1 percentage points, an improvement from the record high of 30.8 percentage points in 2019 but still large by historical standards, and the Hispanic homeownership rate stood nearly 26 percentage points below that of white households, according to a study by Harvard's Joint Center for Housing Studies. Homeownership, of course, correlates directly with wealth. e Federal Reserve's 2019 Survey of Consumer Finances shows a median household wealth for white families of about $188,000, compared with $36,000 among Latino families and $24,000 for Black families. e Brookings Institute in 2019 showed whites, Hispanic or Latinos, Blacks, and Asian Americans currently represent 60.1%, 18.5%, 12.5%, and 5.9% of the U.S. population, respectively. And the U.S. Census Bureau numbers release mid-August revealed the growth in the American population over the last decade was driven entirely by minority communities, as the number of white Americans declined for the first time since the nation's founding. However, when it comes to the population of Americans working within housing-finance and mortgage, those numbers shift to 71.6% white, while Hispanic or Latino, Blacks, and Asian Americans represent 9.1%, 7.5%, and 9.4%, respectively. In the years 2000-2019, the housing industry workforce increased by 66%, yet the representation of Hispanic or Latino and Black employees only increased by 5% and 1.98%, respectively, according to a report this year by Fannie Mae. During the same 19-year period, Hispanic or Latino CEO representation in the housing industry increased by 4.15% and Black CEO representation edged up by just 0.34%. Diversity, equity, and inclusion (DEI) experts say changes within the industry can translate to progress as a nation toward a fairer housing and mortgage-finance system. Kenneth Imo, VP of Diversity, Equity, and Inclusion, Fannie Mae, says the representation gap within the industry is so huge that it would take more than a century to close without direct intervention. "While the country is rapidly becoming more diverse, the housing industry is not. And it is imperative that the industry reflect the country it serves to more effectively address the inequities that have disadvantaged far too many," Imo said. "If the housing industry falls victim to what Dr. Martin Luther King Jr. once described as the 'tranquilizing drug of gradualism,' it will take 114 years for the industry to mirror the diversity of our nation. Consequently, doing nothing is not an option." "For decades, we've considered [DEI] initiatives as the right thing to do," said Windi Gerber, SVP of Human Resources, Open Mortgage, "but even as our country grows more diverse, mortgage lending continues to see racial imbalances in employment opportunities and credit availability … Borrowers and potential homebuyers in underserved areas simply do not have the same opportunities as other similarly situated borrowers. is disconnect leads to lower homeownership rates for Blacks and Hispanics and impacts the ability to grow long-term generational wealth." John Drumgoole Jr., VP, Minority Lending, New American Funding, Forbes contributor and Human Resources Council Member, and award-winning author, speaks to the importance of "mirroring the communities you serve." "When there's limited representation it creates somewhat of an imbalance and micro-vacuum dynamic," Drumgoole said. "Most high-performing minority loan officers can easily chart 60-70% of their lending mix to communities of color. Imagine what that could look like for our industry if we had more diverse representation." "People have an interest in those things that they have exposure to. If, for various reasons, you have been unable, or you haven't had exposure to a career in housing finance, why would that register as something that you would even want to consider doing?" —Kenneth Imo, VP of Diversity and Women Inclusion, Fannie Mae Cover Story By: Christina Hughes Babb

• Cover