Center for Financial Advancement
The Center for Financial Advancementtm will introduce college students from Historically Black Colleges and Universities (HBCUs) to the mortgage industry as a career choice. It will prepare them for the industry by elevating their money management skills, and teaching them about credit and building wealth. Most importantly it will, expand diversity and inclusion in mortgage finance.
The face of the typical homebuyer is changing. Young people of color will account for four of five of the newly created households over the next decade. The mortgage finance industry will be particularly challenged by this sea-change in demographics.
A 2015 study by the Stratmor Group found:
- The average age of a mortgage loan officer is 47
- About 10% of loan officers are over the age of 60, only 3.3% are younger than 30
- Only 10% of loan officers who reported their ethnicity were Hispanic or Latino, and only 3% identified as black or African-American, while 81% self-identified as white.
To keep pace with the marketplace mortgage lenders must attract and retain young, skilled, and diverse talent. To improve the aforementioned numbers, action must be taken now.
“Diversity is critical to the future success of the mortgage industry,” says Jeffrey Schummer, Vice President of Education Business Development for the Mortgage Bankers Association. “Not only does it strengthen our companies, but it helps us to reach out to an increasingly diverse customer base.”
Do well by doing good. Become a sponsor of the Center for Financial Advancement. As a sponsor you will:
- Build a workforce that reflects the diversity of the millennial generation
- Increase your market share among millennial homebuyers
- Gain CRA credit for contributing to the HBCU of your choice
- Access a pipeline of college interns and graduating students for careers with you
- Increase the recognition of your brand with a robust social media and public relations campaign
- Access a new pipeline of homebuyers of color through interaction with parents and faculty
The millennial generation is the largest and most diverse generation in history. The oldest of them are already considering homeownership. A recent Harris Poll found that 92% of millennials who do not currently own a home, plan to purchase one. In addition, 40% of those polled, plan to buy a home in the next 4 years or less.
The faster lenders prepare for the millennial generation, the better entrenched and well-branded they will be among them. The Center for Financial Advancement is your opportunity to access and leverage some of the best and the brightest of this game-changing generation.
“The benefits of a partnership with the Center for Financial Advancement are two-fold,” said David H. Stevens, President & CEO of the Mortgage Bankers Association. “African-American students will develop important money management and financial literacy skills, while also having the opportunity to explore a career in the real estate finance field. At the same time, the industry will benefit from an influx of better educated potential homeowners, not mention an influx of diverse new talent into the industry who can bring homeownership opportunities in traditionally underserved communities.”
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“Companies that turn to collective impact will both advance social progress and find economic opportunities that their competitors miss.” – Harvard Business Review, October 2016