National Mortgage Lender Commits To Loaning $20 Billion To Future Black Borrowers Through 2028 | Atlanta Daily World

Aiming to address the persistent homeownership gap, New American Funding (NAF), a national mortgage lender, has committed to making $20 billion in new home loans available to Black borrowers by 2028. 

This significant initiative, known as NAF Black Impact, is an extension and rebranding of the previous NAF Dream program, reflecting the lender’s enhanced dedication to supporting Black individuals and communities in their homeownership journeys.

The initiative, which began in 2016, initially provided $2.25 billion in loans to Black borrowers. With $17.75 billion still to be distributed, NAF aims to tackle the systemic barriers that have historically hindered Black homeownership.

According to recent reports, the homeownership rate for Black Americans significantly lags behind that of White Americans. In 2021, the homeownership rate for White Americans was nearly 73%, compared to just 44% for Black Americans. This disparity underscores the need for targeted efforts like NAF Black Impact to promote equity in homeownership.

NAF, an independent mortgage lender with a servicing portfolio of over 263,000 customers and a value of approximately $69.1 billion, views this initiative as a critical step towards closing the racial homeownership gap. The company operates over 250 locations nationwide.

“For us, this is much more than a rebranding of the initiative. This was a necessary step to demonstrate our responsibility to the Black community,” Patty Arvielo, Co-Founder and CEO of New American Funding, said. “NAF Black Impact means that we commit to providing access to mortgages and financial resources to help more Black families achieve homeownership. By providing the necessary support, we believe that we can make a difference and create a more equitable society for all.”

In 2023, loans to Black borrowers made up 12% of NAF’s total loans, reflecting the U.S. Black population rate. The firm aims to increase this percentage by 1-2% annually. Of the loans provided, 70% were government loans (FHA and VA), and 30% were conventional.

Furthermore, NAF distinguishes its pledge from other lenders by customizing its processes and programs to address the unique challenges faced by Black homebuyers. 

Mosi Gatling, NAF Senior Vice President of Strategic Growth, emphasized the company’s commitment to providing a diverse and comprehensive lending experience.

“The industry in the past has pigeonholed Black homeownership as ‘assistance or affordable housing,’ but Black ownership is much more than that, and the Black community deserves an experience from application to closing that is more than they’ve been provided in the past,” Gatling said.

NAF’s initiatives include assisting Black Americans in buying homes with cash to compete with investors and offering a Black Impact Housing Advocate Certification program for real estate agents and builders. This program aims to eliminate unconscious bias and meet the Black community’s specific needs.

The company provides access to educational resources, products, services, partnerships, and in-market support to drive sustainable home buying and investment goals.

“It’s time to evolve because Black homeownership isn’t a one-size-fits-all. Buying a home shouldn’t project poverty or revictimize a group of people that we are claiming to serve,” Gatling said. 

He added: “We want NAF to become where all Black families feel comfortable and supported in their homeownership. We want them to know that NAF is here for them.”

Find more details about the NAF Black Impact program here, and to apply, click here.

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