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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 38 March 2024 F E A T U R E S T O R Y households, an estimated 775,000 Asian households, and 2.2 million Hispanic households are expected to reach the median age for homeownership. Chris- tensen says even more effort could help raise the percentage of first-time and minority homeowners as programs such as those listed above work to educate homebuyers about their options. "The three greatest challenges to promoting homeownership in the current market are affordability, interest rates, and inventory constraints," Christensen said. "The rising prices of homes, coupled with stagnant wages across the country and higher interest rates, make it specifically difficult for first-time would-be home- owners to successfully enter into home- ownership. These challenges also affect existing homeowners that could potential- ly become move-up homebuyers." Caroline Isern, SVP of Multi-Cultural Lending for New American Funding, revealed just how significant the strategies imple- mented to advance homeownership are, as well as what factors will help increase the number of mortgaged households throughout the U.S. According to Isern, the mortgage industry is actively taking several actions to advance homeownership, including: » Digital platforms: Many mortgage lenders are embracing digital technol- ogy to streamline the homebuying pro- cess, making it faster, more convenient, and less costly for borrowers. This includes online mortgage applications, electronic document submissions, and verifying income and assets digitally. » Education: The industry is investing in homeowner education programs to help prospective buyers understand the mortgage process, including financial literacy, so they can make an informed decision about home- ownership. This includes things like seminars, one-on-one coaching, and online resources. » Affordable housing initiatives: Mort- gage lenders partner actively with government agencies and nonprofit organizations to support affordable housing initiatives. » Homebuyer assistance programs: Mortgage lenders offer specialized programs to assist specific groups of homebuyers, including veterans, teachers, healthcare workers, or residents of underserved communities. These programs usually help with closing costs or other incentives to make the dream of homeownership more attainable. » Advocacy and policy engagement: The mortgage industry actively engages with policymakers, regulators, and industry stakeholders to advocate for policies that support homeowner- ship and address barriers to housing affordability. These activities include lobbying for sensible regulations, supporting housing finance reform efforts, and promoting initiatives to ex- pand housing supply and affordability, among others. Isern said that the industry can work to address the needs of traditionally un- derserved demographics "by continuing to offer an expansive mix of loans, offer- ing tailored products for these segments, providing education, and making sure we are mirroring the communities we serve." Isern also noted that exploring alterna- tive credit-scoring models could provide "We must continue empowering our communities by actively engaging with them, trying to understand their unique housing needs, and tailoring our offerings to serve them better." —Caroline Isern, SVP of Multi-Cultural Lending, New American Funding Isern