In Episode 023 of the Scotsman Guide Author Showcase, Carl White interviews Rebecca Richardson of Kind Lending about her article, “Path of Progress,” in the December 2023 issue of Scotsman Guide Residential Edition.

Rebecca Richardson is a Charlotte-based originator for Kind Lending. She is popularly known as “The Mortgage Mentor” and is a seasoned loan officer with 20-plus years of experience. She has a strong passion for helping individuals achieve their dreams of homeownership. As a social media influencer and industry thought leader, Richardson uses her platform to educate and empower others.

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“When consumers use a housing counselor, they are more likely to obtain a mortgage and are less likely to default.”

Housing counselors prime borrowers for the costs of homeownership and help them retain their homes. Through either group or one-on-one sessions, counselors assist prospective buyers throughout the mortgage process, including the pre-application phase, the purchase search and the post-closing period.

Traditionally, housing counselors have played a particularly important role in helping borrowers avoid foreclosure by providing advice in default situations, but assistance is now growing in the pre-purchase space. Housing counselors are partnering with mortgage lenders and originators to help borrowers prepare for homeownership, creating home-ready clients who can work with lenders to fulfill their dream of homeownership.

Trained guidance

Housing counselors aid borrowers on a litany of issues, such as managing debt or improving credit, throughout the homebuying process. Counselors can connect consumers with key parties and give them the tools to become successful homeowners. Most importantly, housing counselors can help borrowers avoid foreclosure once they’re in a home.

On the pre-purchase side, housing counselors are trained to provide guidance on downpayment assistance programs and help the consumer understand the types of mortgages that are available. They help to build and maintain credit, and they also advise on the roles of the real estate agent and lender. They begin by getting an understanding of a client’s financial situation (including income, credit and debt) to best offer advice.

Their primary goals are to instill financial literacy; encourage budgeting and responsible financial behavior; provide information on the homebuying process; and prepare buyers for the unique maintenance challenges associated with owning a home. This information can help to promote the long-term sustainability of homeownership.

Counseling may be the best avenue for consumers who have been denied approval for a mortgage and require customized assistance. While there are many reasons that consumers would connect with a housing counselor, the two most common reasons are to find homebuyer assistance programs and to obtain help in qualifying for specific loan programs.

Inexperienced borrowers

Housing counselors are available to and used by people of all demographics, although they tend to be utilized more often by certain groups. African Americans, Hispanics, women and people from lower-income households tend to turn to a housing counselor more often than the general population.

The higher representation for these groups can be explained by their tendency to more frequently include first-time homebuyers or a limited family history of homeownership. This may also explain why these groups are more frequently subjected to predatory lending tactics.

While housing counselors have helped many consumers access homeownership, many Americans are unaware of these services. Additionally, the word “counseling” can provide a negative connotation to some people, as it indicates a problem that needs to be fixed and can be a deterrent to a consumer soliciting the services of a housing counselor.

Tangible value

Housing counselors play a key role for homeowners and renters alike, which is supported by studies that show the positive effects of using their services. The immediate positive effects of counseling are more responsible mortgage shopping and selection, better home maintenance, lower rates of loan default and more stabilized neighborhoods.

Another positive outcome of working with a housing counselor is support for groups who have historically had a harder time becoming homeowners. In general, counselors help to narrow homeownership gaps based on race, gender and income.

When looking at the tangible value that a housing counselor provides, buyers who receive guidance achieve significantly better loan performance than those who do not, all other factors being equal. Using delinquency rates as a primary measurement of loan performance, the Urban Institute’s 2001 study of mortgages originated through Freddie Mac’s affordable housing program found that individuals who received counseling were 19% less likely to have a 90-day delinquency, and they were 34% less likely to do so when they received one-on-one counseling.

A 2012 study from the U.S. Department of Housing and Urban Development (HUD) also showed that consumers who received pre- purchase counseling had better long-term outcomes. Furthermore, the earlier that counseling is started, the sooner people can do an affordability analysis and determine whether buying a home is the right option. A study released in 2013 through NeighborWorks, a nonprofit that supports community development programs, reported similar findings.

●●●

Housing counselors are an essential resource for many consumers during the home purchase and subsequent ownership processes. When consumers use a housing counselor, they are more likely to obtain a mortgage and are less likely to default. Additionally, historically disadvantaged communities are receiving assistance from counselors.

 In an ideal world, as consumer awareness expands on the benefits of housing counseling, anyone who wishes to consult with a counselor may do so. If you or a client wishes to find a housing counselor, visit the website of HUD’s Office of Housing Counseling. Increased knowledge about the value of this service would enable a larger percentage of the population to understand and feel comfortable using these services. ●

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To increase Black homeownership, it is critical to address systemic issues such as fair housing laws, financial redress and inclusive zoning. Increasing Black homeownership is a social justice and economic growth strategy that can benefit everyone. Mortgage professionals can harness their collective expertise and influence to create change.

Through accessible loans, policy changes, affordable housing initiatives, credit score reform and community investments, mortgage professionals can make homeownership a reality for more Americans. More families can move closer to the American dream if lenders, originators and credit counselors work together to dismantle systemic barriers and promote inclusivity.

Positive optimism

Consumers are ready for change. Despite systemic barriers and bias in the housing market, a recent survey revealed that Black consumers (47%) are far more likely than whites (26%) to think that homeownership will become an option for them.

The online survey was conducted this past June by the National Foundation for Credit Counseling and was funded with a grant from Wells Fargo. The survey focused on 2,000 U.S. renters with household incomes of $75,000 or less. The parameters of the survey ensured that Black renters represented 25% of respondents.

The results were clear: Black consumers are open to homeownership education within their communities (e.g., workshops, financial counseling and affordable housing initiatives). Financial professionals of all types should look to connect them with the tools and resources to help them reach their goals.

Credit counseling can play a significant role in helping people secure a mortgage. Counselors are financial advocates who work to empower consumers to take charge of their finances through one-on-one reviews of credit card debt, student loans, housing decisions and overall money management. Connecting borrowers with certified credit counselors can go a long way to helping them achieve their goals.

Trust barrier

Mortgage professionals can support multicultural consumers in many ways along their path to homeownership. Buying a home is a major life decision that, for many multicultural families, involves everyone. Elders and children alike may attend meetings, ask questions, translate and offer opinions.

Mortgage professionals should listen to, learn about and embrace the unique cultural nuances of their clients. This can help make a traditionally stressful process less taxing. While cultural competency is good, cultural fluency is better.

Mortgage professionals should also confront the elephant in the room: racial bias. Along the journey to homeownership, your clients of color have likely encountered subtle and/or overt racism. Not only does this put them on guard, it also increases their skepticism of the lending process and makes the building of trust more challenging.

Acknowledging their lived experiences and fears is the first step in breaking this cycle. Avoid reflexive responses (e.g., “maybe that’s not what they meant”) in favor of statements like, “I hear you and acknowledge your experience,” to establish rapport.

Overall picture

Tell your clients about mortgage products designed to increase homeownership rates, especially among people of color. These programs aim to address the historic and systemic barriers that have limited their access to traditional home financing options. Such programs may have lower downpayment requirements, lower interest rates, flexible credit requirements and community support.

While retail banks issue the majority of home mortgages, there are a variety of funding sources that may better suit your client. Provide them with options that include government-supported initiatives. These can include mortgages through the Federal Housing Administration or U.S. Department of Veterans Affairs, as well as credit encouraged through the Community Reinvestment Act. Offer a complete overview of the loan products available to them.

Sometimes it’s best to press pause. If the client is simply not ready for homeownership, refer them to an accredited nonprofit housing and credit counseling professional who can work to get them financially ready. Counselors can work with clients on customized debt management plans that are designed to help them reach their goals.

These plans may include a review of the credit report, assessing their financial accounts, and preparing a customized budget to help them pay down debt and address areas of concern. These actions work to improve credit — and a higher credit score can make individuals more attractive to lenders, potentially qualifying them for better loan terms and interest rates.

Remain determined

Importantly, if a client isn’t approved for a loan product today, don’t give up on them. The current deficit on their financial record need not be permanent. Consumers often visit with credit counselors after being rejected for a mortgage. It’s best to encourage them to think of it as a “not yet” instead of a “no” and to get to work on reversing the trend.

Consumers need to establish a clear financial plan to better manage their expenses, pay down debt, and save for a downpayment and closing costs. These are essential components of the homebuying process.

Purchasing a home is a significant milestone in anyone’s life. It represents financial stability, a sense of accomplishment and generational wealth. Credit counselors and the mortgage industry can work together to help reduce homeownership disparities and promote economic empowerment in Black communities. ●

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In October of next year, the Equal Credit Opportunity Act of 1974 will mark its 50th anniversary. This landmark legislation prohibits lenders from discriminating against a borrower on the basis of gender or marital status, and it was amended in 1976 to protect against other forms of discrimination, including race, age and religion.

“Mortgage professionals, as the face of the business, have a responsibility to champion equal access and financial literacy.”

The impact of the ECOA is evident today. Single women now outnumber single men as homebuyers. Women are earning more bachelor’s degrees than men and their average credit scores are identical. But obstacles still exist as women face pay gaps, sexism, harassment and a gender gap in financial literacy.

As women have evolved from second-class citizens to breadwinners, the mortgage industry also needs to evolve to serve and educate them with safety and respect. Mortgage professionals, as the face of the business, have a responsibility to champion equal access and financial literacy.

Financial history

In 1853, suffragist Susan B. Anthony wrote that a “woman must have a purse of her own, & how can this be, so long as the wife is denied the right to her individual and joint earnings.” By 1890, 20% of women were wage earners. And by 1900, all states had passed laws allowing married women to retain ownership of property and real estate.

This allowed them some control over their wages, but banking services were nearly impossible to access. A few banks ran so-called “ladies’ departments,” and in 1919, the First Woman’s Bank opened in Tennessee. Still, these services were available almost exclusively to upper-class white women, and it wasn’t until the 1960s that women were given legal access to banking products.

Hurdles continued. Even with legal access to bank accounts, lines of credit and loans, most institutions still required a male co-signer. This largely prevented independent women — single, divorced or widowed — from participating.

The 1970s were a turning point for women’s rights, including financial rights. In 1971, the Supreme Court unanimously ruled that “dissimilar treatment on the basis of sex” between men and women was unconstitutional. Amendments to the Civil Rights Act protected women from discrimination in hiring and firing. And in 1974, the ECOA was passed, barring lenders from requiring a male co-signer and limiting them to only consider creditworthiness when reviewing applications.

Financial literacy

To take advantage of access to financial products, including mortgages, clients must be educated about them. A TIAA Institute study found that women lag behind men in financial literacy while Black and Hispanic women lag behind their white peers. The study also found that financial wellness was higher among those with higher financial literacy — meaning that the more educated you are, the more creditworthy you’ll be.

Picture a divorced woman in the rapidly changing world of the 1970s and ‘80s. Most of her adult life was spent sharing finances with her husband, who had control of the accounts. She now has to figure out how to support herself for the first time, and despite the pain and hardship she experienced in her marriage, she asks her ex-husband for an alimony increase because she needs money.

 You might be confused by this approach. Why would she ask her ex-husband for money when she could start working or reach out to family for support? This woman had the means to overcome any financial hurdles she faced. The problem was, she didn’t know her options, and she was frozen in a certain mindset — almost as if financial independence wasn’t even an option to consider.

This perspective likely sounds foreign to a mortgage professional with extensive financial education, but it was a reality for millions of women, for many years. Women today make more money than ever, but they still earn less than men. They have improved their financial literacy, but that isn’t equal either. Mortgage originators can help bridge this gap so that women can take control of their financial destiny through education.

Response to misogyny

Recently, a video was posted to Instagram discussing the profound changes that occurred due to the passage of the ECOA. The video highlighted the liberation women experienced when they were no longer required to have a male co-signer for a credit card and mentioned the increase in single female homebuyers.

Responses to the video were far from expected. The comments section hosted an onslaught of derogatory remarks, rife with misogyny and offensive generalizations about women’s spending habits and financial means.

Women thriving in male-dominated industries are not strangers to what some consider socially acceptable misogyny. This manifests in meetings where men heavily outnumber women, with vague innuendos and/or outright sexist comments. It’s expected and tolerated, so women go into these situations prepared. The initial approach is observation — to look for contextual clues of who will regard them as an equal and who might not. Then they handle conversations accordingly and move on.

“When driven by a clear vision and purpose, external criticism loses its power. Focus on the betterment of your community.”

Although women often possess the resilience to handle such situations in a professional setting, more direct online vitriol — like the comments on that video — are not only personally hurtful but also a stark reminder of the misogyny still present in some circles. A woman not normally exposed to such toxicity may not be prepared to combat it. But she certainly would not want to perpetuate it either. Her first reaction might be to close the comments or take down the video altogether.

But she should not let this undermine the video’s message or erase positive responses to it. The video was a worthy history lesson highlighting the importance of financial equality. It was intended as encouragement to other women and its message shouldn’t be silenced by anonymous bullies. The creator left the video up, and decided to rebuke and refute. The disgusting comments finally stopped and the supportive ones started showing up. This reaffirmed the importance of the video’s message: advocate for financial equality and challenge stereotypes.

This experience is not unique: According to the Pew Research Center, 41% of Americans have experienced online harassment. Sixty-one percent of women polled thought it was a major problem, with 48% of men in agreement. Social media platforms have even been called out by international governmental organizations as a “conveyers of sexist hate speech.”

If this can affect something as simple as a financial education video, it should serve as a call to action for mortgage professionals who don’t conform to dated gender norms. You are a front-line resource for equal access, education and financial literacy.

What’s next?

Although many originators serve a diverse clientele, female clients appreciate working with someone who understands their unique challenges. In a 2013 Insured Retirement Institute study, 70% of women said they prefer to work with a female financial adviser.

A 2022 survey by Edelman Financial Engines shed more light on this statistic. In the Edelman study, 82% of people said they prefer to work with a financial adviser who shares a common background or beliefs. Women want to work with women because they feel safer. They aren’t placed in yet another situation where time and energy are spent deciding whether a person’s smile is genuine, or if it’s hiding opinions like those in the Instagram comments section.

Women are mothers, sisters, wives, daughters and friends. They make up roughly half of every community, they are breadwinners, and they deserve the same rights and privileges as men. Any mortgage originator can make their business a safe and comfortable place for women by actively advocating for them. Explore your own biases and thoroughly educate your female clientele to help them get approved. Ally yourself professionally with women’s groups, or host workshops for young, single people of all genders.

Many originators already contribute to this transformation by sharing their knowledge on platforms like social media. As your influence grows, however, so may the backlash from those invested in maintaining the status quo. Standing out invites scrutiny and attempts to diminish your voice, but you cannot be silenced.

When driven by a clear vision and purpose, external criticism loses its power. Focus on the betterment of your community. Your voice matters and your community needs your insights. By embracing authenticity and refusing to conform, you ensure that your message of financial empowerment reaches those who truly need it.

Resist the urge to shrink back. You deserve to be heard and your community needs to hear what you have to say. The journey to financial equality continues and you, as financial professionals, must not let bullies deter you from the path of progress. ●

The post Viewpoint: Path of Progress appeared first on Scotsman Guide.

“We needed to be brash and a bit aggressive to get people’s attention and make sure that they knew what problems existed.”

AIME has grown to a point that it’s being invited into “conversations that are meaningful,” said Katie Sweeney, the nonprofit’s CEO. For its first couple of years, she felt the group looked to garner as much attention as possible.

“We needed to be brash and a bit aggressive to get people’s attention and make sure that they knew what problems existed,” Sweeney said. “I think the last three years, we’ve really focused on moving on from talking about what needs to be fixed to actually fixing those things.”

Scotsman Guide spoke to Sweeney about the mortgage business, how brokers help homebuyers and how AIME supports brokers. She also discussed AIME’s annual National Mortgage Broker Day, which is held July 18.

What is the main challenge facing the mortgage industry at the moment?

We’re seeing challenges from all angles. Brokers are not immune to a lot of these struggles. Specific to the housing space, there’s a lack of inventory. There’s obviously been a change in interest rates from what people have been accustomed to over the last few years. So, there’s hesitancy on the consumer side.

How do brokers overcome that?

They tend to be much more agile. When you have a higher rate environment or purchase market environment, which is what we’re seeing right now, the overhead tends to be much, much lower than you see at large retail lenders. The ability to pivot and move quickly exists on the broker side much more often than you see with some of the larger retail lenders or the banks.

Why are you optimistic about the broker channel?

When you look at small businesses, and the tenacity and the grit that comes along with being successful, you don’t find people more passionate than the ones who serve their neighbors and work with their local communities.

How does AIME help with that?

We’ve got everything from education and training to advocacy efforts to make sure we’re protecting your business model. We have the ability to connect you with lenders that offer different products and to make sure that you have the community support that’s necessary.

One of your focal points has been to increase diversity in the business. How do you do that?

Our objective is to make sure the housing industry, and the mortgage industry specifically, look like the consumers that are purchasing homes today. Lots of people don’t even know this is a career path that’s available for them. We focus on training to make sure that we’re bringing people in from the communities that lack representation. Then the next step is helping to start businesses.

What other initiatives is AIME undertaking?

The focus is on making sure that our members have access to the best education available and that they’re implementing that into practice when working with consumers. AIME Academy, along with our advocacy efforts, are definitely the focus and the goal this year.

Tell us about AIME’s National Broker Day.

Typically, we’ve celebrated on July 18th in different cities across the country. This year, we are bringing our state captains, our VIPs, many of our most engaged members out to (Washington, D.C.). On National Mortgage Broker Day, we’ll be doing a full day of what we call ‘flooding the Hill.’ We have probably 50 meetings set up with legislators, talking about the things that matter back home.

There’s an online element, right?

We’ll have social media graphics and ways that you can engage with members from different areas of the country. We’ll have local happy hours that are taking place to bring our members together back home in their states, if they’re not able to join us in D.C. We really just want to spread the word and make sure that everybody is aware of the opportunity that comes with working with a mortgage broker. ●

The post Q&A: Katie Sweeney, Association of Independent Mortgage Experts appeared first on Scotsman Guide.

There are multiple barriers to entry for these prospective homebuyers. According to the UCLA School of Law’s Williams Institute, LGBT adults are more likely to live in poverty and experience homelessness. And a study from Realtor.com found that 29% of LGBT people reported or suspected being victims of discrimination. These inequities are magnified for LGBT people who are also transgender and/or people of color.

These are overarching social inequities that will take time to fix, but there has been recent progress. In 2021, President Joe Biden signed an executive order that extended Fair Housing Act protections to cover gender identity and sexual orientation. And federal legislators have introduced the Equality Act, which would provide permanent and comprehensive nationwide discrimination protections, although it has yet to become law.

“Education breaks down so many barriers. Understanding who you’re working with enables you to be a better professional.”

– Ryan Weyandt, CEO, LGBTQ+ Real Estate Alliance

Evidence of such discrimination in mortgage lending is thin, since lenders don’t collect sexual orientation data. A study published by researchers at Iowa State University examined differences in lending outcomes between applications from same-sex co-borrowers and opposite-sex co-borrowers. The study found that the approval rate for same-sex borrowers was 3% to 8% lower than different-sex applicants with comparable finances and risk factors. It also found that same-sex borrowers were less risky applicants, with similar default risk and lower prepayment risk.

Mortgage originators are on the front lines of homeownership opportunities. And since there is evidence of discrimination against LGBT borrowers, one of the most helpful things originators can do is simple — make prospective LGBT clients feel safe and welcome.

“While we found that discrimination against the LGBTQ community is real, the perception or the fear of discrimination from LGBTQ consumers is actually significantly worse than the actual discrimination rate that’s occurring,” says Ryan Weyandt, a loan officer of 10 years and CEO of the LGBTQ+ Real Estate Alliance.

“It’s a huge barrier to homeownership,” he says. “If you take yourself out of the process, don’t walk down the path to homeownership because you’re afraid that you’re going to encounter discrimination or have a poor experience, you’re eliminating the potential of growing into homeownership.”

Weyandt says that it’s going to become increasingly important to work with minority groups, including the LGBT community, in the next several years. He calls it both a moral imperative and a business imperative. “The reality is, if you look at America and you look at the projections over the next 15 years, minority segments in this country hold the wealth, hold the buying power, and will make up a good portion of the GDP (gross domestic product) in this country,” Weyandt says. “And if the business community isn’t accessible to our minority communities … it’s going to turn into an economic disaster.”

The LGBTQ+ community in America has a ton of spending power. A few years ago, the estimated value of LGBT input to the U.S. economy was $1.7 trillion. Based on 2021 GDP data, this would make the U.S. LGBT community the 12th largest economy in the world if it was its own country.

Originators can start to attract and retain LGBT clients by improving education, both for themselves and their borrowers. Many organizations — including the Trevor Project, Safe Zone Project, Human Rights Campaign and the LGBTQ+ Real Estate Alliance — offer resources and dedicated training courses to educate straight allies. “Education breaks down so many barriers,” Weyandt says. “Understanding who you’re working with enables you to be a better professional.”

An expansion of efforts to educate potential homebuyers of all demographics will also reach LGBT homebuyers. Weyandt says he personally delayed buying a home by about five years because he didn’t fully understand the process and didn’t want a stranger who didn’t understand him scrutinizing his bank statements. He says it’s key to create a safe and welcoming space where clients from all backgrounds can learn about the complex mortgage process as well as available programs such as downpayment assistance.

It’s also important for lenders to hire originators who represent diverse communities. Being served by a loan officer who has similar life experiences creates a better overall client experience and could create more equitable, unbiased lending outcomes. Weyandt believes this is the secret to getting more LGBT people into homeownership.

Generation Z is aging into homeownership and millennials already make up the largest pool of potential homebuyers. According to a Gallup poll released in 2022, one in 10 millennials identify as LGBTQ+, as do one in five members of Gen Z. As public opinion shifts toward acceptance, many of the barriers to homeownership will begin to come down. June is both Pride Month and National Homeownership Month, offering originators a chance to be viewed as a safe resource for LGBT clients.

“There’s something going on here in this country,” Weyandt says. “What we’re seeing is that the masses are embracing the LGBTQ+ community and making us feel more welcome and comfortable in living our authentic lives.” ●

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This type of zoning also has a legacy rooted in racism, said Muhammad T. Alameldin, policy associate for the University of California at Berkeley’s Terner Center for Housing Innovation. Single-family zoning was originally conceived in Berkeley in 1916 as a way to keep both people of color and poor people out of certain neighborhoods.

“When people say we need to end exclusionary zoning or end single-family zoning, it doesn’t mean whole neighborhoods are going to be torn down and redeveloped.”

“It’s like requiring everyone to buy an SUV,” Alameldin said. “Not everyone can afford an SUV, so the people that cannot afford it have to live in different areas. We repealed racial covenants and passed the Fair Housing Act, but we never came to terms with single-family zoning.”

Several cities and states across the U.S. have eliminated single-family exclusive zoning by allowing two units (and sometimes more) to be built on a single lot. A recent study by The Pew Charitable Trusts found that the cost of rent in four of these cities grew much more slowly over a six-year period than the rest of the country. Alameldin spoke to Scotsman Guide about this shift in land-use policy and what it could mean for the nation’s housing crunch.

Why are lawmakers rethinking single-family zoning at this moment?

We’re in a severe housing crisis, so we must open up the land that’s only zoned for single-family homes for other options. It doesn’t mean that single-family homes are illegal. It means that in that zone you could build a single-family home, or you could build three units, four units or eight units.

People seem to conflate the removal of single-family zoning with a ban on single-family homes. Why is that?

When people say we need to end exclusionary zoning or end single-family zoning, it doesn’t mean whole neighborhoods are going to be torn down and redeveloped. It just means you as a homeowner or developer have the option to build more units. Single-family homes are not banned by the end of single-family zoning. It just means you’re going to have more housing options.

Why is homeownership important?

It’s a major wealth driver. Homeownership gives people access or pathways to starting a business, to putting their kids in college, to staying in the community to build equity and stability in retirement. It’s the cornerstone of the American dream.

Is supply key to the housing affordability crisis?

A hundred percent. People are leaving California for two reasons. No. 1, the rent is too high and I can’t afford to live here. Or No. 2, I’m making a middle-class income, but I can’t buy a home. If we were just to build enough housing to keep up with population and job growth, families could stay together instead of living in whole different states.

What caused the current undersupply of housing?

There was this age of single-family zones, so there weren’t a lot of places to build. And the Great Recession took out a lot of builders (from the labor pool). We have to make up for 50 years of underbuilding in the next 20 or 30 years, or this crisis is going to get a whole lot worse, and we’re going to have an economically segregated society — much worse than we do now.

What can the mortgage industry do to encourage more building?

Advocate within their local communities for more housing typologies and fix the appraising system when it comes to accessory dwelling units (or ADUs, which are often valued at less than the cost of construction).

Any final thoughts?

It’s not just zoning that needs to be changed. Minimum and maximum unit sizes, floor-area ratio requirements, the way we structure our impact fees — these sorts of issues that are within the process of building need to be rethought as well. ●

The post Q&A: Muhammad T. Alameldin, Terner Center for Housing Innovation appeared first on Scotsman Guide.

“One of the things I’m really proud of is a lot of the women have gone back to their organizations over these years — mPower is six years old now — and started networking groups within their own organizations,” said Marcia Davies, MBA’s chief operating officer and founder of mPower. “It’s that ripple effect, right?”

“I know people are looking at how to keep their businesses profitable, what changes they need to make to their business model, but people are the most important assets.”

The organization will hold several in-person events at conferences this year, including at the MBA Annual Convention & Expo in Philadelphia this October, which coincides with the release of the McKinsey & Co. “Women in the Workplace” report. Davies spoke with Scotsman Guide about mPower and the need to invest in employees even in a time of economic uncertainty.

Are women in the mortgage industry more at risk than men in a down market?

I really haven’t heard that anecdotally or seen any data that suggests women are more impacted in a downturn than men. In fact, if there’s downsizing occurring, it’s usually done by job function.

Can you expand on that?

If your volumes are swelling, you’re going to need more underwriters, more salespeople, more loan officers, etc. When volumes slow down, that overhead is something you have to look at to rightsize your organization.

What jumped out at you from last year’s McKinsey report?

It goes into the broken rung. The broken rung is when you climb the corporate ladder, there seems to be a broken rung for women. Everybody starts out on a level playing field in these entry-level jobs, but something happens as they get increased responsibility and rise into management and leadership, where men end up getting more of those roles. So, we really need to pay attention to, is that happening in our organizations? And if so, why is that?

And that’s not amplified in a downturn?

I would think if there’s a broken rung, it certainly doesn’t help in a downturn to try to fix it. If the rung is still broken when things are good, I can only imagine in a downturn, it’s not going to make it better.

What are some of the gains that women have made in the mortgage industry in the past few years?

I have seen more women stepping up and, for lack of a better expression, leaning in, applying for bigger roles and getting them. I have seen women who’ve networked starting to do business together, who have never had the opportunity to connect and do business together. I see women championing women.

What needs to be done in the future?

I don’t think we can lose sight of how important it is to keep investing in our employees, and that’s male and female. I know people are looking at how to keep their businesses profitable, what changes they need to make to their business model, but people are the most important assets. We really can’t take our eye off the ball at not only creating opportunities but nurturing our employees and giving them the training and the support that they need so that they can continue to grow even in a downturn.

How do you help employees, especially younger mortgage originators, in a downturn?

I do think it is the responsibility of those of us who have been in the industry for a while to reach a hand down to some of the younger professionals and make sure we are mentoring them, we’re guiding them, we’re lifting them up and we’re giving them opportunity even in a down market to show what they can do.

What are your other thoughts or concerns?

My immediate concern is, how long is this downturn going to last? What will we see when we come out of it? Will employees have received the training and opportunity during the downturn where they feel like their careers are advancing? Or do they feel like they’ve stalled? ●

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