During Black History Month, the Black Homeownership Council under the Broker Action Coalition released a strategic playbook equipping mortgage professionals with data-driven solutions to address a persistent industry challenge: Black and Hispanic homebuyers experience 72% higher denial and predatory lending rates than white applicants, according to HMDA and Urban League data.
Personal Mission Drives Professional Action
Dr. Jennifer Gormer, who chairs the council, understands the barriers firsthand. As a 24-year-old mother of five and sole breadwinner, she achieved what no one in her family had before—homeownership.
“I closed at five o’clock on Christmas Eve. We got the last tree from Home Depot and celebrated Christmas in our first home,” she recalls. “My mom, grandmother, great-grandmother—none of them had this opportunity. That experience drives everything I do now to make homeownership accessible for other families.”
Research Identifies Three Core Barriers
The playbook synthesizes findings from mortgage brokers across all 50 states, combining national data with real-world case studies. The research pinpoints three systemic obstacles:
Financial Literacy Deficit: Black homebuyers often lack access to credit and financial education that directly influences approval outcomes—not due to inability to learn, but lack of access to quality educational resources.
Down Payment Program Invisibility: Federal, state, and local assistance programs exist, yet awareness remains critically low in Black communities. “Imagine being told you need 5% down—that feels like a lifetime of saving,” Dr. Gormer notes. “But assistance programs exist. The problem is borrowers don’t know about them.”
Overlay Accumulation: Certain lenders layer additional requirements beyond standard guidelines, creating approval barriers that disproportionately impact Black and Hispanic applicants while serving no clear risk management purpose.
Additional factors compound these challenges: credit report costs have quadrupled from $25 to over $100, and insurance premium increases squeeze debt-to-income ratios for borrowers with less financial cushion.
“These factors don’t just affect application rates—they determine who reaches the closing table,” Dr. Gormer explains. “Initial approval means nothing if borrowers can’t close.”
Actionable Intelligence for Industry Professionals
Rather than documenting problems, the playbook delivers operational guidance: protocols for identifying lenders with minimal overlays, connection pathways to assistance programs, financial education integration frameworks, and cost mitigation strategies.
This approach reflects the council’s broader philosophy—proactive industry engagement rather than reactive compliance.
Proven Advocacy Infrastructure
The Black Homeownership Council leverages the Broker Action Coalition’s established advocacy capacity. BAC coordinated 250+ congressional meetings and mobilized 25,000+ constituent letters supporting the Homebuyers Privacy Protection Act, which passed in 2025.
The council functions within a multi-council structure alongside Hispanic Homeownership Leadership and Veterans Homeownership councils, enabling specialized focus with strategic coordination where challenges intersect.
Dr. Gormer also founded the Black Mortgage Professional Alliance (BMPA), which provides complementary data and professional networks through its BAC partnership.
Economic Implications
The 30-percentage-point gap between Black and white homeownership rates represents untapped market potential. Closing this disparity could introduce millions of qualified households into the homebuyer pipeline.
For mortgage professionals, this work merges market opportunity with professional responsibility—expanding reach while addressing equity.
Industry Engagement
Dr. Gormer frames participation as both invitation and expectation: “Lean in. Ask questions. And recognize that you have a voice worth contributing.”
The council’s annual measurement framework will track denial rate trends, assistance program utilization, overlay prevalence, and cost trajectories—providing the industry with progress metrics rather than just aspirational goals.
“I believe in what BAC and BMPA are building together,” Dr. Gormer states. “We’re closing this gap incrementally—day by day, month by month, borrower by borrower. That’s how meaningful change happens.”
The Black History Month release positions the playbook as both historical acknowledgment and forward-looking strategy—recognizing persistent challenges while providing practical tools for measurable progress.
Access the playbook here.
About the Broker Action Coalition
The Broker Action Coalition is a grassroots network representing independent mortgage brokers nationwide through education, professional development, and strategic industry advancement initiatives.