Promontory MortgagePath Adds First CDFIs for Minority Partnership Plan

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Promontory MortgagePath, a provider of mortgage loan execution services, has announced the first two partners to partner with minority banks and credit unions to expand homeownership opportunities in the communities they serve.

Home ownership is commonly touted as a way to help narrow the wealth gap between minorities and whites. A recent study by Zillow found that in a typical black family only 23% of wealth belongs to a typical white household, and the low homeownership rate accounts for 49% of the gap.

Industrial Bank, a community development financial institution based in Washington DC, was incorporated and began offering mortgage loans through Promontory MortgagePath Platform in April. The bank also has branches in New Jersey and New York.

Another member, Optus Bank of Columbia, South Carolina, which has both minority depository institutions and CDFIs, is in the process of being rolled out.

“We are committed to creating prosperity for all clients, with a focus on those affected by 400 years of exploitation and racism,” Optus Bank President and CEO Dominik Myartan said in a press release. “Together with Promontory MortgagePath, our goal of amassing $ 100 million in black wealth over the next 10 years is more attainable.”

Promontory MortgagePath presented the program last October. At the time, the Danbury, Connecticut-based company noted that there were more 1,100 CDFI certified which managed approximately $ 222 billion in assets. In addition, of the country’s more than 5,400 federally insured financial institutions, 149 are minority depository institutions.

“These community-focused financial institutions are the lifeblood of opportunities to enhance the well-being of the clients they serve,” said Gene Ludwig, CEO of Promontory MortgagePath and a former financial controller in the Clinton administration. “CDFI and MDI are critical components in addressing serious social problems – from unemployment to wage stagnation – that many communities face. These problems are more acute for Americans of color. ”

The program offers institutions exclusive pricing, resources and joint marketing efforts to lower barriers to them so they can engage in mortgage lending and do it profitably, the company said.



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