Orion’s brokers are “in the trenches” when it comes to working with borrowers, day inand day out. Although you see borrowers all of the time, we felt it worth while to better understand what is going through their minds. Sure, there’s a sense of gaining economic wealth, permanency, a roof over their heads. But what else is going on behind the scenes, and why are there differences in ownership rates?

We were particularly interested in what Fannie Mae’s economists found. There’s certainly a gap based on race and ethnicity: the homeownership gap and the survey’s findings under the backdrop of a lack of affordable housing supply andunprecedented home price growth.

Findings include mortgage lenders pointing to two market factors in particular that are driving the continuation of the homeownership gap: an insufficient supply of affordable homes for sale and high home price appreciation. Still, most mortgage lenders remain optimistic that the housing industry can effectively address the issues. Lenders most frequently cited down-payment assistance programs (DPAs) and low down-payment mortgage products as the best ways to help close the homeownership gap. Orion offers our brokers these products.

Lenders were largely split on whether closing the homeownership gap is incorporated in their corporate strategies. Slightly over half of the respondents reported that it is. Notably, approximately two-thirds of larger lenders reported this issue as a corporate goal. Regarding actions lenders are currently taking to help close the homeownership gap, they reported promoting low down-payment mortgages as the most popular activity, followed by offering pre-purchase homeownership education and credit-building programs.

Brokers tell Orion’s AEs that it one thing for the Biden Administration, or any presidential administration, to state that affordable housing or first-timehome buyers are a priority. Carrying that out, however, is incredibly problematic. Using DPAs and high LTV programs is fine, but when builders are grappling with escalating building costs, high permit fees, and a lack of skilled labor, not to mention neighborhood efforts to keep some of these developments out of their areas, things can break down.

Orion offers its brokers several programs that can help first-time home buyer clients. Just ask your AE!

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