June 18th 2024.
A national mortgage lender has recently announced a promising initiative aimed at narrowing the gap in homeownership rates. This initiative, called NAF Black Impact, was launched by New American Funding, previously known as NAF Dream. The lender has committed to making $20 billion in new home loans available to Black borrowers by 2028, with $2.25 billion already provided since the initiative's start in 2016.
Through NAF Black Impact, the lender hopes to support Black individuals and the community in their journey towards homeownership. This is especially significant as Black homeownership rates have consistently fallen behind those of White, Hispanic, and Asian Americans. In fact, according to a recent report, the homeownership rate for White Americans in 2021 was nearly 73%, while the rate for Black Americans was only 44%.
Recognizing the need for assistance in addressing systemic barriers that have hindered Black homeownership for many years, New American Funding has taken a critical step towards closing the racial gap. Company Co-Founder and CEO Patty Arvielo explains, "For us, this is more than just a rebranding. It is a necessary step to show our commitment to the Black community." She adds, "NAF Black Impact means that we are dedicated to providing access to mortgages and financial resources that will help more Black families achieve their dream of homeownership. We believe that with the right support, we can make a difference and create a more equitable society for all."
NAF Black Impact has already made significant progress, with lending to Black borrowers accounting for 12% of the lender's total loans in 2023. The company has also stated its goal to increase this percentage by 1-2% annually. However, NAF emphasizes that its commitment to the Black community goes beyond just numbers. The lender takes a personalized approach, acknowledging and addressing the unique challenges that Black individuals face when buying a home.
Mosi Gatling, NAF Senior Vice President of Strategic Growth, explains, "We have consciously chosen to approach lending to the Black community in a way that is as diverse as the people we serve." She adds, "Black homeownership has often been pigeonholed as only affordable or low-income housing, but it is much more than that. The Black community deserves an experience from application to closing that is tailored to their needs and removes any unconscious bias."
To achieve their goal of supporting Black families in homeownership, NAF Black Impact also offers access to educational resources, products, services, partnerships, and in-market support. Gatling shares, "We want NAF to become a place where all Black families feel comfortable and supported in their homeownership journey. We want them to know that NAF is here for them."
If you are interested in learning more about NAF Black Impact and possibly applying, you can find more information and the application process on their website. New American Funding is committed to making a positive impact on the Black community and closing the homeownership gap, one loan at a time.
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