Opinion: Promoting Latino homeownership through workforce representation

Building a diverse workforce that is representative of today’s homebuyers is more than just a good business strategy; it is a moral obligation for the housing sector.

The demographics of first-time homebuyers in this country are shifting, with Latinos playing an increasingly important role. The formation of new households is a precursor to purchasing, and 450,000 new households will be added in 2023 alone. That same year, the Hispanic homeownership rate reached 49.5%, representing 377,000 Hispanic households. Looking ahead, U.S. Census data predicts that more than one in four Americans will be Latino by 2060, and the Urban Institute projects that Latinos will drive 70% of new homeownership growth between 2020 and 2040.

The National Association of Hispanic Real Estate Professionals (NAHREP) estimates that 8.3 million Latinos under the age of 45 who have a mortgage are not yet homeowners in the U.S. We must do more to help these families achieve their American dream, and we can start by working to close a significant gap in industry representation.

To best serve these aspiring homeowners, we must look beyond language barrier issues and recognize and embrace the multicultural backgrounds and values ​​of today’s Latino communities (and all minority communities). It is not a homogenous group – while the Cuban community in Miami, for example, shares a common language with the Mexican community in Dallas, each culture is unique, shaped by its rich history – and we as an industry must be intentional about how we understand and support their journeys .

Our mortgage and real estate professionals must understand and authentically represent the diverse cultural perspectives and backgrounds of our clients. This involves a thorough understanding of the cultural nuances and financial behavior of different communities.

Mortgage and real estate professionals who come from the communities they serve build trust with homebuyers, which is critical to supporting their journey to homeownership. Latino homebuyers should feel like their interests are represented by professionals who understand their unique needs. Companies with diverse teams in their organizations excel at serving these communities.

Nearly 64% of the nation’s loan officers are white, while only 15% are Hispanic or Latino, highlighting a gap that still exists among mortgage professionals of color. To solve this, the housing industry must unite in purposeful ways and focus on community-based recruitment efforts. We must attract a representative workforce from other industries where Latinos are more prevalent, and we must offer additional training and mentorship programs to set new mortgage professionals up for success.

We must build programs that cultivate a diverse talent pipeline from universities and expand them to community colleges and high schools, where we can incentivize students with programs that support their pursuit of relevant degrees. Additionally, fostering affinity groups in the workplace allows diverse communities to thrive and contribute, while also allowing us to better understand the unique needs of diverse homebuyers through shared knowledge and experience. As we expand development initiatives, we can elevate diverse talent to leadership positions, creating a ripple effect that enriches the diversity of our talent pools within our organizations.

Importantly, support for diversity must start at the top, with a commitment to fostering diverse teams that reflect the communities they serve. We are making progress, but there is still more to do. Each year, NAHREP honors the nation’s top-performing Latino housing professions with the Top 250 Real Estate and Top 250 Mortgage Originator awards. For example, at LoanDepot, 42% of our lenders in the market are Latino, which was achieved through years of deliberate recruitment and retention initiatives.

As Gary Acosta, co-founder and CEO of NAHREP often notes, our nation’s economic prosperity is intimately tied to our ability to facilitate homeownership opportunities for all Americans, regardless of background. By prioritizing inclusivity and representation, we can better meet the needs of Latino families while ensuring everyone in this country has equal access to homeownership opportunities. It’s time for the industry to come together and prioritize a workforce that reflects the rich diversity of our country.

Jesus Cruz is Vice President of Community Lending for LoanDepot.

Nora Aguirre is president of the National Association of Hispanic Real Estate Professionals.

This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.

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