11/2/2018
Lenders mine demographic data to expand their reach | National Mortgage News
Rather than thinking of certain borrowers as square pegs in round holes, lenders and investors are increasingly realizing that they will get further if they make changes to accommodate customers, rather than trying to make people fit into pre-existing molds. These tactics are not just short-term solutions. As consumer demographics continue to change, lenders that effectively manage them will set themselves to maximize their outreach to their evolving customer base long term. About one-third of purchase mortgages go to borrowers in racial or ethnic minority groups, according to the Federal Reserve's analysis of HMDA data. But the minority share of the millennials that dominate the workforce is over 44%, according to the Brookings Institution. And by 2060, the "minority" share of the population could be 56%, projections based on U.S. Census data show. Lenders are taking a closer look at marketing to underserved ethnic and racial groups because of market share numbers like that, according to Kristin Messerli, managing director of https://www.nationalmortgagenews.com/news/lenders-mine-demographic-data-to-expand-their-reach
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