National mortgage lender set to extend $20 billion in loans to Black borrowers by 2028

BY Preta Peace Namasaba June 20, 2024 7:17 AM EDT

National mortgage lender New American Funding has launched the NAF Black Impact to empower and support Black Americans in their pursuit of homeownership. The firm has committed to extending $20 billion in new mortgages to Black homebuyers by the year 2028. With over 250 locations nationwide, NAF boasts a servicing portfolio of more than 263,000 customers and a value of about $69.1 billion.

“Increasing homeownership rates in the Black community is a critical step toward closing the racial homeownership gap. For us, this is much more than a rebrand of the initiative. This was a necessary step to demonstrate our responsibility to the Black community. 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,” said Patty Arvielo, co-founder and CEO of New American Funding.

Initially launched as NAF Dream in 2016, the program focused on loan officer recruitment, education, and efforts to expand Black homeownership. The initiative has since provided $2.25 billion in loans to support home ownership in the Black community. Its ongoing success has prompted NAF to rename the program NAF Black Impact. The name change signifies the company’s commitment to taking direct, action-oriented steps to address credit accessibility and promote sustainable and equitable homeownership for Black individuals and communities.

The new funding will help potential Black homebuyers navigate systemic barriers that perpetuate disparities in homeownership. NAF Black Impact is partnering with real estate agents, lenders, and community organizations to ensure that Black homebuyers have access to fair and affordable housing options. In addition, the company is providing the Black community with access to educational resources, products, services, partnerships, and in-market support to drive sustainable homebuying and investment purchase goals. Through advocacy and making resources more accessible, NAF Black Impact will help individuals and families achieve their dreams of homeownership and generational wealth.

“We are thrilled to continue the legacy of NAF Dream and extend our support to more Black families. We are firm in our belief that homeownership should be within everyone’s reach, and we are dedicated to transforming this vision into a reality. We want NAF to become the place where all Black families feel comfortable and supported in their homeownership journey. We want them to know that NAF is here for them,” said Mosi Gatling, NAF Senior Vice President of Strategic Growth and Expansion.

Homeownership is one of the most effective means to build wealth and close the wealth gap. For the average American family, a home is the largest asset representing about 30% of their net worth. Data from the U.S. Census Bureau shows that African American homeownership stands at 45.7% compared to whites at 74%, illustrating the  racial homeownership gap. NAF Black Impact’s initiative to extend $20 billion in loans to Black borrowers is a positive step towards creating parity.