TransPerfect at NAHREP Conference – Homeownership & Wealth-Building Factors for Success
TransPerfect attended NAHREP’s three-day Hispanic Homeownership & Wealth Building Conference in Washington, DC, with amazing representation among the nation’s leading banks, mortgage originators/servicers, lenders, real estate brokerages, and industry affiliates of all sizes. NAHREP is a leading non-profit committed to promoting sustainable Hispanic homeownership.
The NAHREP Hispanic Homeownership & Wealth Building Conference is an important event for those interested in supporting the growth and success of Hispanic communities, and TransPerfect FS has outlined highlights and considerations at a 15,000-foot view below.
The opportunities for growth with Hispanic homeowners exist in writing new business, compound impacts of referral business with a loyal segment, re-finances, cross-selling, and reducing operational costs on the back end. For starters, in 2022, the Hispanic homeownership rate in the US rose to 48.6% with 349K net new-owner households. Additionally, there are 7.9 million Latinos under the age of 45, and according to Freddie Mac, 39% are mortgage-ready—the largest ethnic mortgage-ready demographic in the country.
Assuming that growth tied to this demographic aligns with DEI/multicultural business objectives, the following are five key factors for your organization to consider when delivering authentic and earnest support to the Hispanic homebuying communities.
Language and cultural sensitivity: Communicating with Hispanic homebuyers in their preferred language and understanding their cultural background and values builds trust and establishes connections. This involves hiring bilingual agents and employees, using culturally relevant messaging in marketing materials, and accommodating a brand with touch points in-language and in different channels (social/online). Thirty-eight percent of Hispanic homebuyers shared that at least half of the buyer transaction process was conducted in Spanish.
Education and outreach: Forty-one percent of Hispanic homebuyers are first-time buyers and will benefit from education and support to navigate the homebuying process. Brokerages can add value during this process by providing insight into “what to expect,” and lenders build essential trust by leading with financial education about the lifecycle of a mortgage. A NAHREP survey revealed that very few, if any, Hispanic buyers take advantage of housing counseling unless it was required by their loan agreement, and that most commonly, Hispanic buyers leverage social media to learn about the homebuying process. Workshops, seminars, and online tools help build awareness and increase the likelihood of successful homeownership—especially through periods of financial/economic hardship.
Accessibility and affordability: Hispanic homebuyers are more likely to purchase affordable homes and seek out down payment assistance programs. Meeting the financial constraints of this demographic and offering affordable housing options means more market share. Special purpose credit programs (SPCP) are specifically designed to meet the needs of economically disadvantaged groups and prove to be a primary driver in reducing the homeownership gap. Hispanic homebuyers are twice as likely to use FHA financing than the general population, so informing Hispanic buyers about 3.5% down payment programs, sweat equity, and other non-traditional products increases the opportunity for homebuying success.
Technology and innovation: Hispanic homebuyers are increasingly using technology to search for homes and communicate with real estate and lending professionals. Investing in digital marketing strategies, such as social media and mobile-friendly websites, can help reach this audience more effectively. Landing pages or Hispanic-dedicated microsites are effective at informing the community in-language, channeling leads to Spanish-enabled resources, and presenting an authentic, digital experience for this tech-savvy demographic.
Relationship building: Building long-term relationships with Hispanic homebuyers beyond the initial transaction means increased referrals and market share over time. Enable a client communication strategy post-close, in-language, and participate in community outreach. In a turbulent market, keeping homeowners informed of opportunities to pursue refinancing, renovations, or investment properties are all avenues for developing relationships that foster trust and support clients in fulfilling their financial and life goals.
NAHREP has several policy priorities aimed at promoting sustainable Hispanic homeownership and building wealth within the Hispanic community. Some of these policy priorities include:
Housing finance reform: NAHREP advocates for a housing finance system that is inclusive, transparent, and accessible to all Americans, including Hispanics. This includes ensuring that the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac continue to support affordable homeownership opportunities for Hispanic families.
Access to credit: NAHREP supports policies that ensure that creditworthy borrowers have access to safe, sound, and affordable mortgage credit. This includes advocating for fair and transparent lending practices and reducing barriers to homeownership for underserved communities, including Hispanics.
Immigration reform: NAHREP supports comprehensive immigration reform that includes a pathway to citizenship for undocumented immigrants.
Tax policies: NAHREP supports tax policies that promote homeownership and wealth building, including the mortgage interest deduction and the low-income housing tax credit.
Diversity and inclusion: NAHREP supports policies that promote diversity and inclusion in the real estate industry. This includes increasing access to education and training for Hispanic real estate professionals and advocating for fair and inclusive hiring practices within the industry.
During the conference, NAHREP debuted the “2022 State of Hispanic Homeownership Report,” an excellent source of trends, demographic factors, and opportunities to improve access in the Hispanic market. A digital copy can be downloaded here: https://nahrep.org/shhr/.
Many TransPerfect clients were in attendance, including large bank and non-bank lenders as well as niche market players.
We would love to connect with your organization to share industry best practices and opportunities to support the development of your organization’s language access program.