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Webinar Recap: Attracting Hispanic Borrowers: Insights For
Mortgage Lenders And Title Agents

Hispanic webinar - Blog

With this year’s rise in interest rates and the resulting drop in refinance volume compared to previous years, companies are searching for strategies to replace volume and revenue lines. One way to help minimize this loss of volume is to enter the Hispanic American market. Of the 17 million projected new households that will be created over the next 10 years, 8 million new homebuyers will be of Hispanic origin. Entering this market segment is easier said than done, as there are obvious challenges for this realm of business growth.

To discuss these challenges and how to overcome them, we brought in Maria Vergara of NAHREP Consulting Services for her presentation “Attracting Hispanic Borrowers: Insights For Mortgage Lenders And Title Agents.” So what did she say on the subject?

Demographic Profile:
As stated before, the Hispanic market is expected to be upwards of 40% of the total newly created households in the next decade. Here are some differentiations of these soon to be households compared to others:

  • They are younger and typically start families at a younger age
  • Are more likely to live in multi-family dwellings
  • More likely to be bilingual – learned from their parents who are typically 1st generation Americans
  • Located primarily in the South, with established communities in Texas, California and Florida, but hypergrowth in the Southeast

So after examining these traits, what is the best way to market to the Hispanic market?

Employees:
To start any organizational shift like this, the first thing that needs to be done is to make sure there is commitment from the top. Breaking into this market will not happen overnight, so staying the course is the best thing to do. To help facilitate this, try to hire folks who already know the market. Loan officers and title agents may be hard to come by, so try looking in industries that have Hispanic saturation, such as insurance and finance. Finally, hiring people who are bilingual is always a benefit to your organization.

Provide relevant products:
Don’t assume a product is a fit, think more in terms of important features, such as low LLAPs, Products with low down payments, allowing for gift funds, seller contribution flexibility and selling multi-family units. Also be aware that this market typically has a higher debt to income ratio and may have non-traditional income sources and credit.

Getting the Market to Know You:
While 3/4s of the Hispanic community in America speaks English fluently, having documents in Spanish is still a good idea. However, simple translation services are not always the answer, as certain words and phrases can be mistranslated. Using a transcreation service to render the documents into Spanish is the best method of obtaining fluent documentation. Next, being active on social media is a must, considering not only the youth of this demographic, but also because Hispanics are more active on social media than any other demographic in America. Finally, putting your business out there at Hispanic events and locations will always get your company noticed, due to the tight-knit nature of Latin Americans.

While this is a good summary of the presentation (if we do say so ourselves), we think the best way to learn about this topic is to listen to Maria and the presentation yourselves. If you want to check out the entire presentation, click here, or if you want to skim through the slides, click here.

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