Hispanic homeownership is steadily increasing, but when it comes to mortgages, very few companies cater to Latinos.
Speaking to Pasadena Now, a local industry expert said lenders must meet the needs of the Latino community if they are to thrive in the years to come.
“Lenders need to focus on the Hispanic market and recognize that Hispanic borrowers will eventually constitute the largest demographic of qualified borrowers in the country,” said Dawar Alimi, CEO and co-founder of software company Lender Price, based in Pasadena, which is used by lenders. to determine how to manage products, programs and pricing for borrowers.
According to the 2020 State of Hispanic Homeownership Report by the National Association of Hispanic Real Estate Professionals, Latinos are the only demographic group in the United States (U.S.) to have increased their rate. homeownership in recent years.
In the 10 years before the pandemic, Latinos accounted for more than 50% of homeownership growth in the United States and this trend is expected to accelerate over the next 20 years.
It is predicted that between 2020 and 2040, 70% of new owners will be Latinos.
According to Alimi, lenders should strive to connect with Hispanic borrowers “on a personal level” to understand their financial needs and goals.
He said Latino consumers are extremely diverse in terms of country of origin, culture, language and income levels.
According to Alimi, Hispanics also tend to be more family-oriented than other demographic groups. This means they are likely to consider the needs and wants of their extended family when making financial decisions.
Alimi believes an increasing number of Hispanics will buy homes in Pasadena and across the country in the future.
He also thinks more and more Latinos will be granted mortgages, as he mentioned that some lenders such as Loan Depot and Alterra Home Loans now cater to the community.
“It is essential to remember that Hispanics are a growing and increasingly important population in the United States. Therefore, lenders that do not cater to this market could be at a competitive disadvantage in years to come,” Alimi said.
According to a 2020 census survey, 34.9% of Pasadena’s population is Hispanic. 34.6% of the population is white and 17.9% of the population is Asian.