Expanding Home Ownership Opportunities

Becoming Part of the HNMA Community Alliance
Join the HNMA Community Alliance, become part of our family and be
recognized by our lender-partners as an advocate with whom they can work
to increase homeownership opportunities for the most underserved members
of our communities. If interested, please give us a call or write us an e-mail.
H I S PA N I C N AT I O N A L
MORTGAGE ASSOCIATION
HISPANIC
ADVISORY
BOARD
MEMBERS
Luis Maizel, Founding Chairman
Henry Cisneros
Antonia Hernandez
Gary Acosta
Moctesuma Esparza
Jack Kemp
Danny Villanueva
Bruce Karatz
Ana Maria Fernandez-Haar
David Aufhauser
Rev. Luis Cortes
Hispanic National Mortgage Association
HNMA Funding combines the capital market
expertise and reputation of Deutsche Bank with
the cultural insight, market knowledge and
technological proficiency of HNMA.
401 B Street, Suite 625
San Diego, CA 92101
Toll Free: 1-866-766-HNMA (4662)
Phone: 619-795-3679
Fax: 619-546-4189
Ilumina Mortgage combines the financial strength
of Wells Fargo Bank N.A. with the profound cultural
understanding and awareness of HNMA
[email protected]
www.hnma.com
Expanding
Home
Ownership
Opportunities
N AT I O N A L
MORTGAGE
A S S O C I AT I O N
ABOUT HNMA
n
n
UUS
Homeownership Rate
70
76.2%
69.2%
60
50
Homeownership
Gap:
29% vs. nonHispanic Whites
22% vs. Overall
Population
2004
We are helping the mortgage industry to be more responsive to the particular needs of
the Hispanic and immigrant communities. At the same time, we are taking the lead in
developing and delivering more ‘suitable’ mortgage products that provide a real alternative to subprime lending.
Work with Community Alliances and financial institutions to eliminate the Homeownership Gap for Hispanics while effectively serving all underserved communities.
HNMA has focused its efforts in three areas that will help close the homeownership
gap for Hispanics and immigrant borrowers: secondary market liquidity, underwriting
technology and the creation of a “trusted” retail-lending channel. Here is what we are
doing in each area:
Innovative loan programs that allow
lenders to increase their business to
Hispanic, immigrant and other underserved communities
While over 75% of Non-Hispanic Whites have achieved the dream of owning a home,
less than 50% of Hispanics have done so.
HNMA’s Business Enterprises
HNMA Funding Company
Total
Population
Non-Hispanic
Whites
Hispanics
Source: 1983-1993 March Supplement of Current Population Survey
1994-2004 Housing Vacancy Survey; US Census Bureau
We understand the unique behavioral, cultural, and idiosyncratic financial
characteristics of the Hispanic, immigrant and other underserved populations.
What HNMA offers
40
30
n
We are convinced that existing market inefficiencies (in serving our communities)
have led to significant gaps in the homeownership rate between non-Hispanics
and Hispanics in particular.
Working within the Mortgage and Capital Markets
47.4%
1983
n
HNMA’s Mission
Hispanic Homeownership Gap
Homeownership
80%
We are a for-profit company with a clear social mission: to increase homeownership
opportunities for Latinos, immigrants, and other under-served communities.
This is the first national correspondent
lender dedicated to buying closed loans
made to ITIN, Hispanic, Immigrant and other historically underserved borrowers. HNMA
Funding has a $500-million revolving warehouse line that provides liquidity to banks,
mortgage companies and credit unions, encouraging them to make more, lower-cost,
fixed rate loans to Hispanic, immigrant and other underserved borrowers. Originators
who use our proprietary automated underwriting system know that HNMA Funding will
buy their loans efficiently and continuously.
HNMA Research & Development
This team is charged with analyzing our market segments
and developing loan programs as well as mortgage technology. For example, HAUSTM was developed by our R&D
team and provides lenders with technology that uses alternative credit sources enabling
lenders to get a comprehensive measure of a borrower’s credit worthiness. With the
ability to assess non-SSN borrowers, multiple borrowers, multiple jobs/incomes, cash
income and other income characteristics prevalent in these underserved markets, HAUS
makes it easier and more efficient for lenders to serve our communities.
Ilumina Mortgage
A Hispanic-centric retail mortgage origination company.
Ilumina Mortgage offers a unique home buying experience
tailored to the needs and interests of the Hispanic and
immigrant borrower. Customer education, transactional
transparency, community credibility are only some of the
elements that help define this effort.
Liquidity
Today, lenders who want to serve Hispanic, immigrant or other underserved borrowers
must too often hold the loans on their own balance sheets. Through HNMA Funding,
we serve as the secondary market for these loans. So, lenders can sell the loans to us,
lowering their risk and replenishing their capital to make new loans. Our intention is
to purchase $5 billion worth of such loans each year.
Technology
n
n
n
Loans for borrowers without
credit or FICO scores
Loans for borrowers with traditional
credit scores that significantly
underestimate their true credit
worthiness
Loans for borrowers with or
without SSNs
Our underwriting system allows lender-partners to approve more borrowers who in
the past would have been tough to manually underwrite and serve. It does this by:
n
n
n
n
More accurately measuring their true credit risk.
Reducing lender origination costs and, in turn, expanding the number of lenders
who are willing and able to serve these markets.
Standardizing the way non-traditional credit is underwritten, removing subjective
judgments and conflicts of interest from the underwriting process and improving
the quality of loans.
Significantly enhancing the mortgage experience and lowering the cost for
the borrower.
Trust, Transparency & Education
Our research has shown that one of the barriers to home ownership is fear: Borrowers
are worried that they will be treated poorly by mainstream banks and lenders or taken
advantage of by shady mortgage brokers, finance companies and subprime lenders.
HNMA is working to overcome this problem in two ways: we are helping to educate
our lender-partners on how to better understand and serve Hispanic and immigrant
borrowers and we are creating unique retail mortgage experiences that are
straightforward, transparent and consumer friendly.
H I S PA N I C N AT I O N A L
MORTGAGE ASSOCIATION
ABOUT HNMA
n
n
UUS
Homeownership Rate
70
76.2%
69.2%
60
50
Homeownership
Gap:
29% vs. nonHispanic Whites
22% vs. Overall
Population
2004
We are helping the mortgage industry to be more responsive to the particular needs of
the Hispanic and immigrant communities. At the same time, we are taking the lead in
developing and delivering more ‘suitable’ mortgage products that provide a real alternative to subprime lending.
Work with Community Alliances and financial institutions to eliminate the Homeownership Gap for Hispanics while effectively serving all underserved communities.
HNMA has focused its efforts in three areas that will help close the homeownership
gap for Hispanics and immigrant borrowers: secondary market liquidity, underwriting
technology and the creation of a “trusted” retail-lending channel. Here is what we are
doing in each area:
Innovative loan programs that allow
lenders to increase their business to
Hispanic, immigrant and other underserved communities
While over 75% of Non-Hispanic Whites have achieved the dream of owning a home,
less than 50% of Hispanics have done so.
HNMA’s Business Enterprises
HNMA Funding Company
Total
Population
Non-Hispanic
Whites
Hispanics
Source: 1983-1993 March Supplement of Current Population Survey
1994-2004 Housing Vacancy Survey; US Census Bureau
We understand the unique behavioral, cultural, and idiosyncratic financial
characteristics of the Hispanic, immigrant and other underserved populations.
What HNMA offers
40
30
n
We are convinced that existing market inefficiencies (in serving our communities)
have led to significant gaps in the homeownership rate between non-Hispanics
and Hispanics in particular.
Working within the Mortgage and Capital Markets
47.4%
1983
n
HNMA’s Mission
Hispanic Homeownership Gap
Homeownership
80%
We are a for-profit company with a clear social mission: to increase homeownership
opportunities for Latinos, immigrants, and other under-served communities.
This is the first national correspondent
lender dedicated to buying closed loans
made to ITIN, Hispanic, Immigrant and other historically underserved borrowers. HNMA
Funding has a $500-million revolving warehouse line that provides liquidity to banks,
mortgage companies and credit unions, encouraging them to make more, lower-cost,
fixed rate loans to Hispanic, immigrant and other underserved borrowers. Originators
who use our proprietary automated underwriting system know that HNMA Funding will
buy their loans efficiently and continuously.
HNMA Research & Development
This team is charged with analyzing our market segments
and developing loan programs as well as mortgage technology. For example, HAUSTM was developed by our R&D
team and provides lenders with technology that uses alternative credit sources enabling
lenders to get a comprehensive measure of a borrower’s credit worthiness. With the
ability to assess non-SSN borrowers, multiple borrowers, multiple jobs/incomes, cash
income and other income characteristics prevalent in these underserved markets, HAUS
makes it easier and more efficient for lenders to serve our communities.
Ilumina Mortgage
A Hispanic-centric retail mortgage origination company.
Ilumina Mortgage offers a unique home buying experience
tailored to the needs and interests of the Hispanic and
immigrant borrower. Customer education, transactional
transparency, community credibility are only some of the
elements that help define this effort.
Liquidity
Today, lenders who want to serve Hispanic, immigrant or other underserved borrowers
must too often hold the loans on their own balance sheets. Through HNMA Funding,
we serve as the secondary market for these loans. So, lenders can sell the loans to us,
lowering their risk and replenishing their capital to make new loans. Our intention is
to purchase $5 billion worth of such loans each year.
Technology
n
n
n
Loans for borrowers without
credit or FICO scores
Loans for borrowers with traditional
credit scores that significantly
underestimate their true credit
worthiness
Loans for borrowers with or
without SSNs
Our underwriting system allows lender-partners to approve more borrowers who in
the past would have been tough to manually underwrite and serve. It does this by:
n
n
n
n
More accurately measuring their true credit risk.
Reducing lender origination costs and, in turn, expanding the number of lenders
who are willing and able to serve these markets.
Standardizing the way non-traditional credit is underwritten, removing subjective
judgments and conflicts of interest from the underwriting process and improving
the quality of loans.
Significantly enhancing the mortgage experience and lowering the cost for
the borrower.
Trust, Transparency & Education
Our research has shown that one of the barriers to home ownership is fear: Borrowers
are worried that they will be treated poorly by mainstream banks and lenders or taken
advantage of by shady mortgage brokers, finance companies and subprime lenders.
HNMA is working to overcome this problem in two ways: we are helping to educate
our lender-partners on how to better understand and serve Hispanic and immigrant
borrowers and we are creating unique retail mortgage experiences that are
straightforward, transparent and consumer friendly.
H I S PA N I C N AT I O N A L
MORTGAGE ASSOCIATION
Becoming Part of the HNMA Community Alliance
Join the HNMA Community Alliance, become part of our family and be
recognized by our lender-partners as an advocate with whom they can work
to increase homeownership opportunities for the most underserved members
of our communities. If interested, please give us a call or write us an e-mail.
H I S PA N I C N AT I O N A L
MORTGAGE ASSOCIATION
HISPANIC
ADVISORY
BOARD
MEMBERS
Luis Maizel, Founding Chairman
Henry Cisneros
Antonia Hernandez
Gary Acosta
Moctesuma Esparza
Jack Kemp
Danny Villanueva
Bruce Karatz
Ana Maria Fernandez-Haar
David Aufhauser
Rev. Luis Cortes
Hispanic National Mortgage Association
HNMA Funding combines the capital market
expertise and reputation of Deutsche Bank with
the cultural insight, market knowledge and
technological proficiency of HNMA.
401 B Street, Suite 625
San Diego, CA 92101
Toll Free: 1-866-766-HNMA (4662)
Phone: 619-795-3679
Fax: 619-546-4189
Ilumina Mortgage combines the financial strength
of Wells Fargo Bank N.A. with the profound cultural
understanding and awareness of HNMA
[email protected]
www.hnma.com
Expanding
Home
Ownership
Opportunities
N AT I O N A L
MORTGAGE
A S S O C I AT I O N