People may not think much of it today Brand development services or even be aware, but the real estate industry in general has had a long history of disparity. The concept of redlining for years blocked would-be homebuyers out of neighborhoods they were otherwise qualified to buy into. Covenants and restrictions, otherwise known as CC&Rs, made it specific that home sellers could not sell their homes to certain demographics. Lenders discriminated against demographics frequently and did so without worry about violations or reactions. Much of this started to change in the 1970s, and it still took another two decades to clear out many of the elements continuing the practices in hiding. However, the home-lending industry today still has a notable lack of diversity. A new Denver, Colorado program is focusing on changing this situation.
Proactive Outreach in Recruitment
A multifaceted broker is a standard in today’s industry. A typical broker works at multiple levels, connected to different lending markets, handles all types of consumers and would-be property buyers and deals with regulators as well. No surprise, the role takes training and an ability to work independently. That said, training to be a mortgage broker has, for years, been left to the industry. That in turn creates a lot of narrow channels for only those who are connected and known by existing mortgage brokers to be trained as new ones.
Instead, with a focus on reaching under-served communities, a new program will focus on helping new candidates of color become mortgage brokers themselves. This pilot program operated by the Keystone Mortgage Academy will train 15 candidates of color to be functioning mortgage brokers able to work in the Denver market and help represent the community better with more diversity. Lenders have continued to be reticent to help markets that are outside their mainstream expectations, and leave many out of the market for traditional home mortgages. Mortgage brokers are instrumental in reversing that problem, matching viable candidates to working loan programs that help close sales.
Community Involvement is Key to Business Retention
The project is a partnership between philanthropy, the Denver mortgage brokerage community, and the Denver public school system. Utilizing 15 candidates from George Washington High School, the project will focus over three months on an intensive job preparation and skill-building training regimen, making the candidates ready to hit the market on graduation. It’s another option that borrows from the old school skill-training shop approach and modernizes it for the real estate industry today in Denver. The result is expected to produce new mortgage brokers rooted in their communities and responsive to the same needs.
