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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 44 April 2024 F E A T U R E S T O R Y D id you know there is a group of buyers that has trillions in pur- chasing power, above average household incomes, is growing by double digits, but has a homeowner- ship rate well below the U.S. average? It's true, the LGBTQ+ community has a surprisingly low homeownership rate, de- spite all the economic factors that should be working in their favor. This begs the question: what is holding them back? There are many different factors at play. Many buyers that openly identify as LGBTQ+ are millen- nials or from Gen Z, so they face many of the common challenges that first-time homebuyers see, like down payment and affordability challenges, a lack of financial education about mortgages and the op- tions available to them and the list goes on. However, LGBTQ+ buyers of all ages may also face discrimination, compounding the challenges they already face. This community is a huge market that some lenders or real estate agents simply choose not to serve, while others may lack the understanding to serve them effec- tively. Understanding the challenges that the LGBTQ+ community faces can help the industry understand how to better support this market segment and help community members achieve the dream of homeownership. Financial Overview A ccording to the National LGBT Chamber of Commerce (NGLCC), the LGBTQ+ community has $1.7 trillion in purchasing power. This is likely due to the fact that this group has above average household incomes, per Census Bureau data, and the fact that they are growing by double digits, according to an NBC report. All of these seem like factors that would make the LGBTQ+ community a prom- ising group of homebuyers, but instead, they have a homeownership rate that is 17 percentage points behind the national average. The National Association of Gay & Lesbian Real Estate Professionals (NAGL- REP) reports that while the U.S. average homeownership rate is 65%, the LGBTQ+ community's homeownership rate is only 49%—leaving a homeownership gap that the industry can and should help bridge. Discrimination S o, what is creating this gap in the first place? Sexual orientation and gender identity are not protected classes under the Equal Credit Opportunity Act (ECOA) like race, color, or religion, and many states lack protections for this group. Meaning, in many places, it is legal to discriminate against same sex couples. According to reports from the LGBTQ Real Estate Alliance, the LGBTQ+ community reports facing discrimination at schools and at work, and in housing, too. Due to the lack of protections for this group, they often have no option for recourse. While there are efforts to add federal protections for this group, it could be a long time before we see any results. BRIDGING THE HOMEOWNERSHIP GAP IN THE LGBTQ+ COMMUNITY Pursuing education and reaching out to the LGBTQ+ community will help lending and real estate professionals build their business and advance the homeownership rate within the community. B y S H E I L A K L O S T E R M A N N S H E I L A K L O S T E R M A N N is Director of Quality Assurance at Enact Mortgage Insurance, where she leads a team responsible for ensuring process quality including internal and external underwrit- ing decisions. The statements in this article are solely the opinions of the author and do not necessarily reflect the views of Enact or its management.