As part of its effort to increase homeownership among African Americans in the U.S., the Legacy Division of mortgage lender Alterra Home Loans recently opened new branches in Dallas, Atlanta and Baton Rouge.
Specializing in the underserved market, Alterra Home Loans is a minority-owned mortgage bank and the second-largest Hispanic-owned mortgage company in the country. It currently operates in 39 states.
“Today, less than one percent of all mortgage originators in America are African Americans,” says Ben Slayton, president of the Legacy Division, in a release. “This is a problem that cries out for a solution and I’m honored to lead that effort through Alterra’s Legacy Division. Our goal is to open branches in every major city in America that has 25 percent or more African American population.”
Reducing the homeownership gap between African Americans and the national average has been one of the leading change initiatives of the National Association of Real Estate Brokers (NAREB).
In 2017, NAREB announced a goal of attaining two million new African American homeowners over a five-year period, calling the initiative “2NM5.”
“Given the number of African American families that are entering homeownership each year, coupled with a small percentage of African American Loan Originators, NAREB’s goal is very ambitious,” Slayton says. “But it is achievable. It will take an industry wide mortgage lending effort, and a focus on the African American market to achieve the 2MN5.”
Slayton says Alterra is leading that effort through carefully curated products, education and community partnerships.
“We will recruit loan officers from the communities we serve and train them to help our borrowers build a legacy for their families through homeownership,” he says.
“The word legacy means something to African Americans,” Slayton adds. “It speaks to their heartfelt desire to leave a legacy for their families. I would like to see every mortgage lender and every bank in the country launch a legacy division to serve this market. We intend to lead the way.”