TheMReport — News and strategies for the evolving mortgage marketplace.
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24 | M R EP O RT FEATURE writers and loan officers. They found that: » There are over 113,925 mort- gage underwriters currently employed in the United States with the most common ethnic- ity as white (69.1%), followed by Hispanic or Latino (14.4%) and Black or African American (8.2%). » There are over 216,112 loan officers currently employed in the United States with the most common ethnicity of loan of- ficers as white (68.4%), followed by Hispanic or Latino (14.7%) and Black or African American (8.4%). There's been a significant increase in LGBT mortgage un- derwriters and loan officers. The advantages that come with having a diverse workforce for businesses, borrowers, employees, and minority communities are un- matched. When it comes to looking through the lens of those around you, nothing beats lived experience. It's important to have loan officers, originators, and underwriters that have worked with borrowers from all walks of life and have had their own experiences working with borrowers who have varied financial strength and employment history. For example, gig economy workers and self-employed bor- rowers are at an all-time high, and with non-traditional or W-2 jobs, it's imperative that someone on the inside can spot biases that others may overlook. Approachability and Comfort Matter A s human beings, we natu- rally gravitate toward people who are similar to us, whether that's in looks, background, and even in thought and how we view the world. The same is true for prospective minority home- buyers. There's a greater likeli- hood that minority borrowers will feel more comfortable reach- ing out to ask questions and en- gaging in the homebuying process if their community is represented at the table. At times, it can be intimidating to ask questions, es- pecially when you believe others feel you should already know the answer. Connection and com- munication with someone from your own community may yield a more positive experience, which also may turn into additional homeowners and greater opportu- nities within communities. The Transfer of Knowledge Is Key T hough a simple concept, the transfer of knowledge is one that often gets overlooked. The more diversity we have in the mortgage industry, the more knowledge of the mortgage pro- cess will be shared within com- munities. For example, if I have a friend from my community or family member that originates or underwrites loans, or sells homes, there's a much greater chance that I'll have a better understanding of the homebuying process and what it means to be a creditworthy borrower. By simply having that connection with someone from my own community, the possibil- ity of acquiring or learning about the knowledge and information that they possess is much higher than if I didn't have that connec- tion within my community. Gwen Garnett, Center for Financial Advancement Program Director, Home Free USA, said, "Supporting HBCU's and expand- ing opportunities for diverse candidates helps to get more people of color in the industry and into homes. The mortgage industry has great earning poten- tial and opportunities for personal growth." Diverse mortgage profes- sionals become "trusted financial ambassadors" for their commu- nity. They share information with a family member or someone in their circle that homeownership is possible, and they can help demystify the mortgage process. There are many first-generation homebuyers. Having someone in the industry who looks like them creates a level of initial trust to get started on the path to homeown- ership. The Road Ahead T he mortgage industry has meaningful ways to increase diversity within our industry, but it will take intentionality to get there, and certain barriers must be addressed. Lack of representation often leads to a lack of interest. It's natural to gravitate to where you can envision yourself. In an effort to attract new entrants to the mortgage industry, we need to work to attract students of all races and ethnic backgrounds early in their college careers. Mentorship and recruiting programs for histor- ically Black colleges and universi- ties, as well as schools with diverse populations of talent, are great first steps toward attracting more people to the mortgage industry and providing students with the tools to achieve success. Over the past few years, the mortgage industry has made sig- nificant strides in creating a more diverse and inclusive industry. With the introduction of pro- grams and services geared toward helping people within communi- ties of color become homeowners and working through loan modifi- cations if they find themselves experiencing financial hardship to keep their homes, industry participants, agencies, and as- sociations are coming together like never before to make positive and lasting change, and ultimately helping all people achieve the dream of homeownership. . Madisyn Rhone is the Manager of Government and Industry Relations at Enact (formerly Genworth Mortgage Insurance) where she represents the company on Capitol Hill and aids in the development of legislative and regulatory strategy. Rhone joined Enact as an Accelerated Talent Development Analyst where she spent two years in a rotational program, gaining experience in risk, pricing, and operations. The statements in this article are solely the opinions of Madisyn Rhone and do not necessarily reflect the views of Enact or its management. It's important to have loan officers, originators, and underwriters that have worked with borrowers from all walks of life and have had their own experiences working with borrowers who have varied financial strength and employment history.