Since the Community Reinvestment Act (CRA) was introduced in the 1970s, lenders have struggled to find new and meaningful ways to serve low-to-moderate (LMI) communities and tackle homeownership inequality. They do their best to donate to charity or help their community through fundraising and community events. Unfortunately, low-income individuals still have a much harder time getting a mortgage. We've created a Socially Responsible Real Estate Technology that will increase your mortgage business and improve your lending opportunities in LMI neighborhoods. 

The Problem: Unequal Access to Real Estate Resources

Homeownership Inequality

In a 2020 Forbes article titled Redlining’s Legacy Of Inequality: Low Homeownership Rates, Less Equity For Black Households, Real Estate writer Brenda Richardson states, "The national homeownership rate is lower for Black families than white families—44% versus 73.7%." She continues by suggesting this homeownership gap contributes to the overall wealth inequality in the US. Minorities don't have proper access to mortgage lenders and can't accumulate assets.  

Access to Agents

Especially in areas where most residences are rented rather than owned, prospective buyers have a hard time finding an agent to show them a home they're interested in. They might even have a hard time finding for-sale homes in the first place. Unfortunately, some agents refuse to serve certain areas if the homes are valued too low. 

With HomeTraq, the buyer is protected from discrimination because the agent won't see the buyer's face or name before they accept the showing request. Also, some agents won't show buyers a house before they're pre-approved for a loan. In this case, agents are to serve as an educator and encourage the buyer to talk to a lender. 

Redlining

The act of redlining is illegal, but the effects continue to impact low-income neighborhoods. Showing consumers that not only is redlining a thing of the past, but you're encouraging LMI communities to apply for a loan is an admirable mission. 

The Solution: HomeTraq Home Touring Technology

Down Payment Assistance

Notifies the buyer and financial institution when a requested home tour falls in a neighborhood that qualifies for Down Payment Assistance based on FFEIC census tracts. Hundreds of thousands of dollars go unused by potential homebuyers every year. Most of the time, it doesn't get claimed because the buyers don't know it's available. HomeTraq educates buyers and can make the homeownership dream a reality for those that don't think they can afford it. 

Increase Mortgage Business from your own Customer Base

HomeTraq is a real estate solution to a mortgage problem. When partnering with HomeTraq, we refer customers who come through a lender's pipeline back to their mortgage services. Also, we notify the mortgage officer when their customers are shopping around. 

Financial institutions lose 93% of the mortgage opportunities from their own customers every year. HomeTraq can double your mortgage conversions by simply notifying the lender when one of their customers is home shopping. The cost of acquisition is much lower than other lead gen sources because you only pay when your customer goes on a home tour.