MBA and Others Launch CONVERGENCE Collaborative to Address the Racial Homeownership Gap
The Mortgage Bankers Association and 13 leading industry stakeholders announced the formation of the CONVERGENCE Collaborative, a coordinated effort to identify and develop solutions to help close the racial homeownership gap. Over the next three years, the CONVERGENCE Collaborative will deploy more than $1 million annually to build on the existing network of location-based CONVERGENCE sites focused on expanding minority homeownership.
MBA will be joined in the CONVERGENCE Collaborative by the American Land Title Association (ALTA), DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, 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 stakeholder organization in the CONVERGENCE Collaborative will have an equal say in key strategic and operational decisions, with the goal of leveraging their collective resources, expertise, and insights to have a more significant impact.
“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,” said Bob Broeksmit, CMB, MBA’s President and CEO. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
The current CONVERGENCE cities – Memphis, Tennessee, Columbus, Ohio, and Philadelphia – are part of a major initiative launched by MBA in 2019. CONVERGENCE initiatives involve cross-sector partnerships featuring local and national partners from the private, public, and non-profit sectors working together to close the information, trust, market, and resource gaps that create barriers to homeownership for Black, Hispanic, and other underserved consumers. These pilot sites amplify and leverage existing tools and resources as well as test and incubate new solutions to improve access to homeownership. Homebuyers utilizing these programs have access to both online tools, such as a down payment assistance finder, and in-person resources, such as homebuyer education courses.
For decades, the national homeownership rates of Blacks and Hispanics have lagged that of Whites by well over 20 percent, with much larger gaps in some markets. Despite significant public, private, and non-profit investments, these gaps have remained stubbornly high. The challenge of closing these gaps becomes even more urgent considering that most net new households formed over the next two decades will be comprised of people of color.
The goal of the CONVERGENCE Collaborative is to expand and utilize the CONVERGENCE network to create evidence-based tools and roadmaps to help all industry stakeholders better reach aspiring minority homeowners. Over the next three years, the Collaborative will use the CONVERGENCE network to create a robust “Knowledge Community,” the learnings from which will help inform new and innovative strategies, tactics, and partnerships.
“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, ALTA’s CEO. “As longstanding partners in CONVERGENCE, we’ve seen firsthand the value of this approach.”
“USMI’s members work every day to help borrowers overcome one of the biggest barriers to homeownership for first-time, low- and moderate-income, and minority homebuyers: the need for a large cash down payment,” said Seth Appleton, USMI’s President. “We welcome the opportunity to partner with the CONVERGENCE Collaborative on collective strategies to support sustainable and affordable homeownership for underserved communities across the country.”
The Collaborative will focus on the intersection between business development and expanding socioeconomic opportunities for historically underserved people and communities. This focus is both an economic and moral imperative. A more robust, balanced, and fair housing market is also a more stable and prosperous one – it benefits everyone.
“The launch of the CONVERGENCE Collaborative marks a pivotal step in our commitment to bridging the racial homeownership gap,” said Kevin Sears, NAR President. “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.”
The Collaborative looks forward to sharing its success stories and welcoming new partners as it works toward solving this important challenge. Learn more about the CONVERGENCE Collaborative here.
