National Mortgage Lender Extending $20B In Loans To Black Borrowers Through 2028

Aiming to help reduce the homeownership gap, a national mortgage lender has pledged to make $20 billion in new home loans available to Black borrowers by 2028.

As part of that commitment, New American Funding has launched NAF Black Impact, a rebranding initiative formerly called NAF Dream. The lender declares the effort supports Black individuals and the community in their pursuit of homeownership. Starting in 2016, the initiative provided $2.25 billion in loans to Blacks to reach its goal within the next three years.

The remaining $17.75 billion will go to potential Black homebuyers. This includes helping them conquer systemic barriers that have sustained homeownership gaps for many years.


Some help is certainly needed as Black homeownership continues to fall the most behind the White homeownership rate, according to this report. It showed rate for White Americans in 2021 was nearly 73%, higher than the 44% for Black Americans. The homeownership rate for Black Americans also was lower than for Hispanic Americans and  Asian Americans.

New American Funding (NAF) is an independent mortgage lender with a servicing portfolio of over 263,000 customers, a value of about $69.1 billion, and over 250 locations nationwide. The firm views its fresh action as a “critical step” toward closing the racial homeownership gap.

Company Co-Founder and CEO Patty Arvielo stated, “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.”

She added, “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.”

 NAF Black Impact told BLACK ENTERPRISE that in 2023, lending to Black borrowers made up 12% of its total loans. The firm added that lending through the first five months of 2024 was relatively equal to 2023. Of those loans, 70% were government loans (FHA and VA), and 30% were conventional. While the 12% figure mirrors the U.S. Black population rate, the company stated it could push to do more and see an annual increase at NAF of 1-2% this year.


   NAF declares that its pledge to the Black community differs from that of other lenders because it customizes processes and programs specifically to address the unique nuances of “buying a home while Black.”

  Mosi Gatling, NAF Senior Vice President of Strategic Growth, says the business has consciously decided to approach lending to the Black community in a way that is just as diverse as the people.

  “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.”


    For instance, Gatling shared that her firm can help Black Americans buy a home in cash to compete with investors buying homes in their community. She added that the NAF Black Impact Housing Advocate Certification program allows real estate agents and builders who partner with the firm to meet the Black community where they are and remove the unconscious bias that still occurs in 2024.

 The business report will also provide the Black community with access to educational resources, products, services, partnerships, and in-market support to drive sustainable home buying and investment purchase goals.

Gatling reflected, “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.”

  She said, “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.”

  Gain more details about the program here and apply at this place.


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