In the last few years much has been said about the emerging markets in the mortgage industry and how they could be the growth vehicle for a market that continues to have gone bonkers. For many years I have sat in on meeting after meeting of industry professionals expounding the benefits of jumping into the emerging markets. The benefits always seem to outweigh the risks and the profit to make could be enormous. In fact, at one point a couple years back, I was wishing that less was said about the emerging markets because I wanted fewer players on the field. But I need not to worry because after years of attempting to get the message out, regarding working within the emerging markets, I can safely say the mortgage industry has progressed very little in this arena.
I jumped in with both feet into the Hispanic home buying market about five years ago. Up until that point I was not even involved with the mortgage industry. I was like so many Americans that have a mortgage that I didn’t even know what my FICO score was and I didn’t care because I kept my credit history clean. Then I was approached about increasing Hispanic homeownership. Many people wonder why with the surname Troutman why I’m even working with the Hispanic home buying community. Simply put, I am south Texas native and I grew up around Hispanics have had Hispanic friends and acquaintances for years. I have a good understanding of their culture and I’ve earned respect within the Hispanic community. The bottom line for me was I saw a need that was going unfulfilled and on top of that many Hispanic home buyers had been the victims of predatory lending. If I could become entrenched in the industry and understand its nuances I could help Hispanic home buyers across America.
It was a very difficult task a few years back to get anybody in the mortgage business to recognize that the Hispanic mortgage industry was wide open because the country was going through the refinance boom. Back then virtually nobody wanted to help any prospective borrower if they didn’t have a 650+ FICO score. It wasn’t until the refinance boom came to an abrupt end that mortgage companies considered even pursuing new Hispanic clients.
Now fast forward a few years to 2008 and see what mortgage professionals are doing to close more loans in the emerging markets field. Most of the major players don’t even have a Spanish translation key on their websites and if they do they are small and out of the way. Does that mean the major players aren’t dropping some bucks into marketing for the emerging markets? Nope, but the truth is the emerging markets are sitting way back in the bus in this situation.
So, what gives with big financial institutions not seeking out first time Hispanic home buyers? The demographics appear good ; 44+ million Hispanics live in the United States. Only about 50% of the population owns a home compared that to White America where the home ownership rate is over 70%. Although somewhat regionalized, Hispanics have migrated across to a majority of the regions in America. On the surface seeking out first time Hispanic home buyers should be a no brainer especially to an industry that is starving for growth and stabilization. But there is hesitancy in the market place to seek out first time Hispanic home owners. Maybe because the market is in such turmoil the major players’ thoughts are on just trying to survive and are waiting for the markets to stabilize.
The mortgage banker/brokers and loan officers that jump into the Hispanic home buying market may have huge success stories to tell. That is, if they understand the market they are attempting to serve if not, they will be shaking their heads that it was all a big waste of time.
Next Blog: The simple truth regard marketing within the Hispanic home buying community.
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