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Since the housing market collapse in 2008 and the sweeping regulatory overhaul that followed, providing straightforward information to consumers about mortgages and lending services has become a dominant concern for the industry. Especially now that Millennials, the largest generational demographic in U.S. history, are moving into the housing market.
In September, Arch Mortgage Insurance Company (Arch MI) launched the Roadmap to Homeownership (RtHO), a complete toolkit that equips lenders to educate, encourage and qualify prospective first-time homebuyers. Hosting their own homebuyer seminars is a strategic way for lenders to reach out to potential borrowers while strengthening their relationships with local Realtors, who may be invited to participate in the presentation and share networking and cross-selling opportunities.
“The homebuying process appears complex and scary to many first-timers,” said Leslie Gibin, Vice President of Client Risk Management at Arch MI. “The toolkit’s materials make it easy to understand. Lenders can offer guidance and reassurance, as well as affordable home loan options that make homeownership more attainable to many of these borrowers.”
The RtHO toolkit comprises a PowerPoint presentation that lenders can brand with their own logo and contact information, budgeting worksheets, a glossary of mortgage terms, plus a list of resources for prospective homebuyers to consult. It also features a selection of Arch MI’s own affordable housing solutions, which can help lenders qualify more of these borrowers for a loan. “Mortgage insurance is often the simplest way to make homeownership affordable,” Gibin explained. “It’s flexible enough to accommodate small down payments, starter incomes and issues like student debt, and unlike FHA it’s cancellable once the equity reaches a certain level. Plus it’s tax-deductible!”
Arch MI recognizes the importance of the first-time homebuyer market to lenders and to the overall economy. “Getting Millennials into their first homes is a priority for everyone in the industry,” Gibin said. “The GSEs offer programs like HomeReady® and Home Possible®. Lenders are coming up with their own affordable loan programs. Realtors are focusing on ways to sell the value of homeownership to buyers still worried about the recession. The RtHO toolkit is designed to bring all those separate initiatives together with practical MI solutions, so that homeownership is no longer out of reach.”
The toolkit is complimentary and can be downloaded at archmi.com/rtho.
