CBC Mortgage Agency’s Miki Adams: Now is the Time to Advocate for Wider Access to Homebuyer DPA Assistance

Miki Adams is president of CBC Mortgage Agency (CBCMA), a nationally chartered housing finance agency and a leading source of down payment assistance for first-time homebuyers. She joined the Cedar City, Utah-based company in November 2016 as executive vice president and was promoted to president in January 2021. She has 30 years of mortgage lending experience and has managed companies through calm and tumultuous markets. Her background includes credit and collateral underwriting, secondary marketing and portfolio asset management, regulatory compliance, and regulatory audit and examination management.

It’s no secret that the post-Covid world has challenged aspiring homeowners. The impact of quickly escalating interest rates — well below 3% less than three years ago — high inflation, and housing demand that just wouldn’t quit have driven up mortgage payments and closing costs. With rents pushing toward all-time highs, it’s been difficult for families to make the leap from renting to owning, preventing them from building equity and multigenerational wealth.

Amid worsening affordability, consumers have had one incredibly valuable tool on their side—down payment assistance (DPA) programs. If there was ever a time for lenders to fully embrace and support these programs, that time is now.

For decades, DPA programs have played a crucial role in expanding access to homeownership, particularly for first-time buyers and marginalized communities that have historically been disadvantaged in the housing market. Organizations like the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), the NAACP, and the Black Economic Alliance Foundation have long championed DPA programs. Their advocacy has been instrumental in securing funding and creating policies that expand access to homeownership, particularly for historically excluded groups.

As mortgage lenders, brokers, and industry professionals, it’s essential to understand the value these programs bring—both to potential homebuyers and the broader community.

There are many different types of DPA programs available. With the exception of grants, which are generally limited in availability, most programs will require the DPA to be secured by a note and second mortgage on the property. In many cases, lenders have the flexibility to offer options such as amortizing second liens or forgivable second liens. For forgivable options, if borrowers make a set number of consecutive on-time payments on their first mortgage, the second lien might be fully forgiven. This flexibility allows lenders to better serve a range of clients by tailoring programs to fit their unique needs.

Why is a forgivable option important? In many cases, it’s not the monthly payment that hinders homeownership, it’s the ability to save enough money for the down payment and closing costs. Families living paycheck-to-paycheck can spend years striving to set aside these funds only to have an unexpected financial setback—be it a car repair or an illness—wipe out their savings and the hope of acquiring a forever home.

DPA programs short-circuit what can otherwise be a frustrating cycle of effort and setbacks. By helping families access closing funds today, we enable them to own a home sooner, stabilize their monthly housing costs, and build wealth for the future. A family with young children, for example, can make payments as the kids grow into adulthood, and look forward to passing on their home with its accumulated equity when the time comes.

Beyond the initial purchase, many DPA programs provide additional resources such as financial literacy education and counseling. These services empower homeowners to manage their financial obligations responsibly and plan for long-term success.

Those of us who work in the DPA sector share an inspirational mission: to expand access to homeownership to hardworking families. In pursuit of this mission, we not only help families achieve homeownership, but also contribute to stronger housing markets and more vibrant communities across the nation.

Advocating for these causes before members of Congress, housing regulators, and others is something my team and I take great pride in doing. But there is always more work to be done, and we need help.

It is crucial that lenders and mortgage professionals take an active role in educating our nation’s leaders about the transformative power of DPA programs. Whether through direct outreach to policymakers, participation in industry advocacy days, or supporting the lobbying efforts of organizations like MBA and NAR, we all have a unique ability to amplify the voices of the families these programs aim to help.

For individuals of modest means who have long aspired to own a home, we must continue to raise awareness of the availability of down payment assistance and the support that is out there to help them seize the opportunity to become homeowners.

As professionals in the mortgage industry, let’s commit to not only offering DPA options to our clients, but also actively supporting policies that expand access to these programs. By working together with organizations that share our goals, we can ensure that homeownership remains within reach for more families, regardless of their financial backgrounds.  

Advocating for DPA programs is a critical step toward creating a more equitable housing market and stronger communities, and it’s a responsibility we all share. If you care about these things as much as I do, I invite you to join in the effort.

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)