Groups issue recommendations to policymakers and lending industry as well as tips for consumers

WASHINGTON, DC – The National Association of Hispanic Real Estate Professionals (NAHREP) and the National Council of La Raza (NCLR) today released “Saving Homes, Saving Communities: Latino Brokers Speak Out on Hispanic Homeownership,” a joint report offering analysis on the impact of predatory lending practices on Hispanic homeownership and an insider’s view on ways to reduce and discourage such practices. The report’s findings and recommendations were derived from roundtable discussions with 56 NAHREP members, who are practicing mortgage professionals in six U.S. cities with high concentrations of Hispanic homeowners.

Some of the contributing factors of predatory lending practices identified by the participants include insufficient licensing standards, a lack of continuing education and flexible mortgage products, and unequal broker compensation rates for different types of loans.

“Hispanics are the only minority group in the United States whose homeownership rate is steadily climbing, but this growth comes with the price of predatory lending practices,” said NAHREP President and CEO Tim Sandos. “This report clearly demonstrates the need for industry stakeholders to take decisive steps to ensure that real estate professionals in the Latino community and beyond promote responsible lending and protect vulnerable borrowers.”

“Homeownership represents the ultimate symbol of the American Dream, but Hispanics are too often the victims of predatory lending practices that prevent them from realizing this dream,” added NCLR President and CEO Janet Murguía. “Policymakers and the industry as a whole need to take action to end such tactics from the marketplace so that all Americans are equally protected when buying a home.”

The authors of the report make recommendations to policymakers and industry stakeholders to help eliminate abusive lending and to create a fair and efficient marketplace for vulnerable borrowers.

For policymakers:

• Strengthen enforcement and licensing standards for all originators.
• Create a clear ethical standard by which all mortgage originators will be held.
• Create market incentives to prompt the development of affordable home loan products.

For industry stakeholders:

• Make affordable loan products more competitive and accessible in the home lending market.
• Set the borrower up for success by making loans they can afford to repay.
• Partner with counseling providers to educate borrowers on homeownership.

“Saving Homes, Saving Communities: Latino Brokers Speak Out on Hispanic Homeownership” also provides basic tips for consumers to protect themselves during the homebuying process. Those include attending educational seminars, setting strict budget limits, researching the best products available to them, conducting an independent home inspection before buying and reporting abusive practitioners.

For more information or to download a copy of the report, please visit www.nclr.org or www.nahrep.org.

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About NAHREP
The National Association of Hispanic Real Estate Professionals (NAHREP) was established in September 1999 with the mission of increasing the sustainable Hispanic homeownership rate by empowering the real estate professionals that serve the community. Today, NAHREP is a non-profit trade association of approximately 15,000 members in 48 states and 52 affiliate chapters. NAHREP members are real estate agents, brokers, loan officers, mortgage brokers, title officers, escrow officers, appraisers, and insurance agents from diverse cultural backgrounds. The organization’s driving force is the belief in equal access to homeownership for all Americans. Their intention, as trusted advisors, is to help more Hispanic families achieve the American dream by delivering knowledgeable, ethical, culturally sensitive bilingual services to the community.

About NCLR
The National Council of La Raza (NCLR) - the largest national Hispanic civil rights and advocacy organization in the United States - works to improve opportunities for Hispanic Americans. Through its network of nearly 300 affiliated community-based organizations (CBOs), NCLR reaches millions of Hispanics each year in 41 states, Puerto Rico, and the District of Columbia. To achieve its mission, NCLR conducts applied research, policy analysis, and advocacy, providing a Latino perspective in five key areas - assets/investments, civil rights/immigration, education, employment and economic status, and health. In addition, it provides capacity-building assistance to its Affiliates at the state and local level to advance opportunities for individuals and families.