Mortgage Lending Industry Diversity Conference Reveals African American, Hispanic, and Asian Home Buying Growth Outpaces White Growth
WASHINGTON, Sept. 28 /PRNewswire-FirstCall/ -- Minority buyers made up the
fastest growing segment of all new home purchase mortgages in 2005, according
to a new analysis released today at the Second Annual Mortgage Lending
Industry Diversity and Emerging Markets Conference & Career Fair in the
Washington, D.C. region.
"The 2005 Minority Home Buying Surge" report finds that the percentage
increase for all minority loans in "high volume areas" combined was three
times greater in the top 20 mortgage growth metropolitan areas than for White
households, and the increase for Hispanic, African American, and Asian loans
was up to five times greater. The report was issued by Genworth Mortgage
Insurance and Compliance Technologies (ComplianceTech), the co-sponsors of the
diversity conference.
"We are now witnessing the positive effects of the growth in immigrant
households who want to own a piece of the American Dream," said Michael
Taliefero, Managing Director of ComplianceTech. "While immigration is part of
the story, the lower homeownership rates among African Americans and Hispanics
represent pent up mortgage demand that is starting to be filled."
Using newly released 2005 Home Mortgage Disclosure Act (HMDA) data, the
new report, prepared by ComplianceTech, analyzes the change in minority home
purchase loans between 2004 and 2005 in 388 metro areas. Minority borrowers
had a greater percent change than Whites in 320 of those markets.
"Despite the nationwide cooling in home buying, minorities represented a
significantly larger percentage of new purchases in 2005 than they did in
2004," said Kevin Schneider, president of Genworth Financial's U.S. mortgage
insurance business. "We're determined to help close the homeownership gap,
and it's good to see that progress is being made."
When ComplianceTech conceived the conference over two years ago to boost
minority homeownership, Genworth Financial was the first to partner with the
minority-owned company to develop and stage the Mortgage Lending Industry
Diversity Conference series in 2005. Topics to be addressed this year include
minority workforce participation; reducing the minority homeownership gap; the
role of GSEs; market segmentation; prime/sub-prime lending; and ways in which
state and local governments are boosting homeownership.
The 2005 Minority Home Buying Surge report focuses on high volume metro
areas (areas with greater than 1,000 loans per year for all minorities, and
greater than 400 loans for Hispanics, 500 loans for African-Americans, and 200
loans for Asians) and shows minorities are making homeownership progress in
these markets. The full report also examines low volume and very high volume
areas.
The report provides a series of "Top 10 lists" of metro areas and the
2004-05 rates of change in mortgage lending for all minorities and specific
minority groups; Hispanic, African American, and Asian (see attached). Below
is a snapshot for each minority category. The full analysis includes lists
for the top 20 metro areas for each category. It is available at
http://www.mortgageindustrydiversity.com.
Highlights of the report for all minorities include:
The high volume metro area with the greatest change in all minority
lending was Ocala, Florida, with a 90% increase over 2004 levels for
minorities -- 7.5 times greater than the 12% increase in home purchase loans
for Whites in that metro area. In order, the top five markets for all
minority home buying are Ocala, FL; Lakeland, FL; Cape Coral-Fort Myers, FL;
Boise City-Nampa, ID; and Killeen-Temple-Fort Hood, TX.
Highlights of the report for Hispanics include:
The 2005 percentage increase in mortgage loans for Hispanics was 4.7 times
greater than that for White borrowers among the top 20 high volume metro areas
with at least 400 Hispanic loans. The market with the greatest growth in
Hispanic home buying from 2004 to 2005 was Ocala, Florida, with a 97% increase
-- 8 times greater than the 12% increase in home purchase loans for Whites in
that metro area. In order, the top five markets for Hispanic home buying
growth are Ocala, FL; Lakeland, FL; Cape Coral-Fort Myers, FL; Port St. Lucie-
Fort Pierce, FL; and Scranton-Wilkes Barre, PA.
Highlights of the report for African Americans include:
Home purchase loans in 2005 for African Americans increased at a rate 4.8
times the rate for White homebuyers for the top 20 metro areas with at least
500 African-American loans. The market with the greatest growth in African
American home buying from 2004 to 2005 was Lakeland, Florida, with a 86%
increase -- 3.2 times greater than the 26.7% increase in home purchase loans
for Whites in that metro area. In order, the top five high volume markets for
African American home buying growth are Lakeland, FL; Ocala, FL; South Bend-
Mishawaka, IN-MI; Cape Coral-Fort Myers, FL; Killeen-Temple-Fort Hood, TX.
Highlights of the report for Asians include:
Among the top 20 metro areas with the greater than 200 Asian loans in
2005, the percent change for Asians on home purchase loans was 5 times greater
than the 2005 change rate for White home purchase borrowers. The top metro
area for Asian home buying growth in this category was Albuquerque, NM, which
experienced a 177% increase over 2004 - 12.8 times greater than the 13.9%
increase in home purchase loans for Whites in that metro area. In order, the
top five high volume markets for Asian home buying growth are Albuquerque, NM;
Lubbock, TX; Lakeland, FL; Ocala, FL; Phoenix-Mesa-Scottsdale, AZ.
About Compliance Technologies
Compliance Technologies is a Washington D.C. based emerging mortgage
markets and lending compliance consulting firm. LendingPatterns.com is a
trade name of ComplianceTech.
About Genworth
Genworth (NYSE: GNW) is a leading insurance holding company, serving the
lifestyle protection, retirement income, investment and mortgage insurance
needs of more than 15 million customers, and has operations in 24 countries.
For more information, visit http://www.genworth.com.
**Top 10 lists for all minorities and population segments follows.
Top 10 Growth Markets for Minority Home Buying
This information was issued by Genworth Financial, Inc. and ComplianceTech.
All Minorities % Growth % White Minority/White
Growth Growth Ratio
1 Ocala, FL 90.4% 12.1% 7.5
2 Lakeland, FL 87.9% 26.7% 3.3
3 Cape Coral-Fort Myers, FL 76.6% 14.6% 5.3
4 Boise City-Nampa, ID 66.7% 37.9% 1.8
5 Killeen-Temple-Fort Hood, TX 54.9% 32.3% 1.7
6 Port St. Lucie-Fort Pierce, FL 53.7% 9.5% 5.6
7 Yuba City, CA 53.0% 0.8% 63.6
8 Orlando-Kissimmee, FL 52.2% 17.3% 3.0
9 Myrtle Beach-Conway-North Myrtle
Beach, SC 52.2% 35.3% 1.5
10 Jacksonville, FL 51.5% 16.3% 3.2
TOTAL FOR TOP 20 MSAs 3.0
African American % Growth % White AA/White
Growth Growth Ratio
1 Lakeland, FL 86.6% 26.7% 3.2
2 Ocala, FL 81.6% 12.1% 6.7
3 South Bend-Mishawaka, IN-MI 64.6% -1.3% 49.7
4 Cape Coral-Fort Myers, FL 60.3% 14.6% 4.1
5 Killeen-Temple-Fort Hood, TX 53.8% 32.3% 1.7
6 Palm Bay-Melbourne-Titusville, FL 44.6% 0.7% 63.7
7 Jacksonville, FL 42.4% 16.3% 2.6
8 Port St. Lucie-Fort Pierce, FL 42.4% 9.5% 4.5
9 Cambridge-Newton-Framingham, MA 38.3% -0.4% 95.8
10 Wilmington, DE-MD-NJ 38.1% 3.4% 11.2
TOTAL FOR TOP 20 MSAs 4.8
Hispanic % Growth % White Hispanic/White
Growth Growth Ratio
1 Ocala, FL 97.1% 12.1% 8.0
2 Lakeland, FL 83.0% 26.7% 3.1
3 Cape Coral-Fort Myers, FL 82.3% 14.6% 5.6
4 Port St. Lucie-Fort Pierce, FL 65.6% 9.5% 6.9
5 Scranton-Wilkes-Barre, PA 64.6% 4.9% 13.2
6 Killeen-Temple-Fort Hood, TX 63.0% 32.3% 2.0
7 Charleston-North Charleston, SC 58.1% 22.8% 2.5
8 Fayetteville-Springdale-Rogers,
AR-MO 57.5% 1.2% 47.9
9 Boise City-Nampa, ID 57.3% 37.9% 1.5
10 Gainesville, FL 57.1% 13.4% 4.3
TOTAL FOR TOP 20 MSAs 4.7
Asian % Growth % White Asian/White
Growth Growth Ratio
1 Albuquerque, NM 177.4% 13.9% 12.8
2 Lubbock, TX 133.7% -3.2% 41.8
3 Lakeland, FL 123.9% 26.7% 4.6
4 Ocala, FL 110.5% 12.1% 9.1
5 Phoenix-Mesa-Scottsdale, AZ 97.1% 14.5% 6.7
6 Boise City-Nampa, ID 96.4% 37.9% 2.5
7 Myrtle Beach-Conway-North Myrtle
Beach, SC 94.7% 35.3% 2.7
8 Orlando-Kissimmee, FL 92.3% 17.3% 5.3
9 Salt Lake City, UT 82.6% 23.5% 3.5
10 Hagerstown-Martinsburg, MD-WV 75.2% 9.3% 8.1
TOTAL FOR TOP 20 MSAs 5.0
Methodology: This analysis uses Home Mortgage Disclosure Act (HMDA) data
from 2004 and 2005. It examines 320 of 388 Metropolitan Statistical Areas
(MSAs) in the U.S. and sets a minimum amount of new mortgage originations
(home purchases) to be considered "high volume" and included in this analysis.
All Minority: High Volume MSAs (2005 Loans > 1,000) with the greatest
change in minority 1st lien, home purchase loans over 2004. African-American:
High Volume MSAs (2005 Loans > 500) with the greatest change in minority 1st
lien, home purchase loans over 2004. Hispanic: High Volume MSAs (2005 Loans >
400) with the greatest change in minority 1st lien, home purchase loans over
2004. Asian: High Volume MSAs (2005 Loans > 200) with the greatest change in
minority 1st lien, home purchase loans over 2004.
SOURCE Genworth Financial, Inc.
CONTACT: Terry Souers of Genworth Mortgage Insurance,
work:
+1-919-846-4459,
cell: +1-919-622-2511
