Group Aims To Protect Latino Borrowers
Training Sought For Buyers, Lenders
TOOLBOX   Resize
 Save/Share +
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
|
Saturday, September 22, 2007; Page F08
Buying a house can be intimidating for anyone.
But it's especially difficult for Latino buyers, according to the National Association of Hispanic Real Estate Professionals. The group this week announced a set of ethical principles, called a code of trust, aimed at protecting those buyers.
The organization's code calls for stronger licensing and industry education requirements, quality controls to ensure that all qualifying consumers are offered a prime loan, increased education so borrowers can make informed decisions, and development of a bilingual guide to home buying.
"Shrinking values and the current credit crunch threaten to undermine the steady homeownership gains our community has made in the past 20 years," said Timothy Sandos, president and chief executive of the association. "For those borrowers who have fallen prey to unethical practitioners, the American dream has become a nightmare. Our newly adopted code of trust ensures that our members set an example for the industry as a whole."
According to the U.S. Census Bureau, about half of Latinos own their homes. While that number has edged up slightly in recent years, it's still well below the 75 percent homeownership rate among non-Hispanic whites.
And, according to the association, Latinos are especially vulnerable to predatory loan practices. Nearly 50 percent of Latino homeowners who have subprime mortgages, which carry higher interest rates, would have qualified for a prime loan, the group said.
The group also said foreclosures in the Hispanic community are expected to reach nearly $25 billion in 2007 and $52 billion in 2008.
Carlos Mesa, director of education at the real estate franchising company Unicasa in Passaic, N.J., said some Hispanic buyers were encouraged to "push the envelope" and take on bigger mortgages than they can easily afford.
Like other real estate professionals, he is concerned about the prospect of foreclosures. But he predicted that many would fight hard and take second jobs, if necessary, to keep their homes.
"For a lot of Latinos, their home is their main investment," said Mesa, who was born in Colombia. "The whole point of leaving your homeland to come here is to get a piece of the dream. You've got to fight for it."
