Promontory MortgagePath LLC today launched its initiative to support minority depository institutions' (MDIs) efforts to expand access to credit and homeownership in underserved communities. Through this initiative, Promontory MortgagePath, a leading provider of comprehensive digital mortgage and tech-driven fulfillment solutions, will partner with minority-owned banks and credit unions.
Promontory MortgagePath LLC today launched its initiative to support minority depository institutions' (MDIs) efforts to expand access to credit and homeownership in underserved communities. Through this initiative, Promontory MortgagePath, a leading provider of comprehensive digital mortgage and tech-driven fulfillment solutions, will partner with minority-owned banks and credit unions, including community development financial institutions (CDFIs), to offer exclusive pricing, resources and joint-marketing opportunities to participating institutions.
"The challenges facing community banks in low- to moderate-income areas will not be fixed immediately," said Promontory MortgagePath CEO and Founder Gene Ludwig. "But we must take action now to ensure that these vital institutions are supported because when these institutions thrive, the positive impact on their communities is profound."
The initiative aims to accelerate the ability of minority-owned banks and depositories to help their communities. There are more than 1,100 certified CDFIs in the U.S., managing approximately $222 billion in assets and, of the more than 5,400 federally insured financial institutions in the U.S., 149 are MDIs. These institutions create jobs, increase access to affordable housing and expand financial opportunities for underserved communities. An Urban Institute study details the vital role of minority-owned banks, which often fill mortgage lending gaps left by other banks and hold a deeper understanding of their communities' needs. The study also found that Black-owned banks are disproportionately affected by financial crises.
Without the right tools, minority-owned banks that lack access to cost-effective mortgage fulfillment technology or do not offer mortgage lending could stand to miss out on their share of the trillion-dollar mortgage origination market. Not only does this put these institutions at a disadvantage relative to their peers, but it also limits wealth-building opportunities for the communities these institutions serve. According to the Federal Reserve's Survey of Consumer Finances, homeowners possess a median net worth of $255,000, while the median net worth for renters is $6,300 (*see note 1).
Ludwig has long advocated for underserved communities, spotlighting the unique economic challenges they face. Throughout his career as former U.S. Comptroller of the Currency and founder of several notable financial services firms, Ludwig has demonstrated his passion for improving access to resources for all borrowers and lenders. In his recently published book, "The Vanishing American Dream," Ludwig leads a critical conversation on the plight of low- and moderate-income Americans, enlisting academics, politicians, CEOs and former presidential advisors to discuss the economic injustice that threatens so many Americans.
Earlier this month, the Community Development Bankers Association (CDBA) endorsed Promontory MortgagePath's mortgage fulfillment services and point-of-sale technology, recognizing the firm's alignment to CDBA's mission of promoting financial inclusion and opportunity among people and communities often left out of the economic mainstream. Promontory MortgagePath plans to work with the CDBA to identify strategic partners to participate in the initiative. MDIs and CDFIs that join the initiative will leverage Promontory MortgagePath's technology, U.S.-based mortgage fulfillment services and robust joint marketing program at an aggressive discount, fast-tracking their efforts to deepen and broaden their reach and expand access to homeownership in their communities.
"MDIs and CDFIs play a vital role in expanding access to credit and building wealth in the communities they serve," said Paul C. Katz, managing director and head of bank relations at Promontory MortgagePath. "Whether they are seeking to establish or grow their mortgage operations, Promontory MortgagePath is committed to partnering with these institutions to provide additional pathways to homeownership, and we highly encourage them to join the initiative."
MDIs or CDFIs interested in learning more about becoming strategic partners or joining this initiative should contact Katz at paul.katz@mortgagepath.com.
About Promontory MortgagePath LLC | NMLS ID 1532373
Promontory MortgagePath is a fast-growing team of passionate problem solvers on a mission to fundamentally change the way lenders approach their mortgage business. The company combines an intuitive, collaborative digital mortgage platform with modern, comprehensive fulfillment services, giving lenders the progressive technology and scalability required to profitably compete in today's rapidly changing residential mortgage market. Promontory MortgagePath's founder, former U.S. Comptroller of the Currency Gene Ludwig, is widely recognized as a visionary thinker on the critical issues confronting financial services, and his companies are renowned for their ability to help community lenders resolve their most pressing challenges. To learn more, https://www.mortgagepath.com.
*NOTE 1: https://www.federalreserve.gov/publications/files/scf20.pdf
Related link: https://www.mortgagepath.com/
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