Citigroup Inc Playing Its Part To Reach Underserved Markets
To be a part of addressing the racial wealth gap Citigroup is investing in digital mortgage capabilities so it can reach all communities, including underserved markets.
Last year Asian homeowners saw an increase in the rate of Citi mortgage applications and originations but it decreased for Black and Hispanic consumers.
Citi’s set a goal of $550M in support for homeownership of people of color and affordable housing by minority developers.
To preserve affordable and workforce housing projects the company is in the final stages of committing $200M of equity which will be in partnership with five Black investment managers.
Some of the U.S.’s top banks pledged to do more to help close the racial wealth gap when the Black Lives Matter movement gained traction last year.
More than $1B was announced in September, by Citi and Citi Foundation.
Along with using digital technology to improve access, Citibank is expanding its Community Lending products and programs, also a HomeRun program that requires low down payments and abolishes the requirement of mortgage insurance for borrowers with low to moderate incomes.
As part of its $100M goal to support MDI growth and revenue generation, the company has already allocated $50M in growth capital to minority depository institutions (“MDIs”)
Reference Source: Seeking Alpha
