One of my most long-lasting and profitable niches was working with an Asian community. No, I’m not Asian. No, I do not speak the language. But I did understand their culture, their family structures, their mindset about money and their religious beliefs.
For example, multiple generations of families tend to live in the same home. Family members want to hold title and be on the mortgage (responsibility culture)—even if their income is minimum wage. My record? There were once seven co-signers on an FHA mortgage.
Knowing this info helped me not only understand how to do business with them (and Asian real estate agents), but I also had to seek out loan programs that fit the culture.
Did you know that the National Association of Realtors currently has 21 different designations and two of them are “At Home With Diversity Certification” and “TransNational Referral Certification." The California Association of Realtors has 13 ethnic real estate organizations, ranging from African American, Korean, Latino (and within the Latino community, Cubans, Mexican, Guatemalans, South Americans, etc.) to Vietnamese-American real estate agent groups.
With Realtors developing their own diversity certifications and organizations, (FaceBook has communities of ethnic agents) it’s a sign that mortgage lenders should also to adapt to the changing ethnic marketplace.
Harvard University’s Joint Center for Housing Studies, in this year’s white paper says, "Throughout this housing cycle, the numbers of immigrant and minority households have continued to grow at a faster pace than those of native-born white households, accounting for 74% of net household growth between 2003 and 2009. As their numbers have climbed, their presence in home buying, remodeling, and rental markets has also increased.”
While speaking a language is an added plus, being able to communicate in “writing” has never been easier. Google has a language app that will easily “translate” an entire website (or just a website page). Yahoo’s version is Babel Fish.
You can also hire staff people who speak another language. My receptionist also spoke Spanish and I had a processor who spoke Chinese. They sat in on loan applications and closings to help translate.
Here are some other ideas:
• Advertise on ethnic radio stations, television (or cable) channels and/or newspapers. Not many mortgage companies advertise here and the cost to do so is very inexpensive because of the limited audience. Ask to be interviewed by a reporter who will translate the interview for their audience.
• Produce a video. Write a script about the home buying process and don’t use mortgage-type technical terms. Learn the culture of the ethnic group—so you address their beliefs about money and mortgages. Hire a “talent” who speaks the language, to be the star of the video. Post the video on your website. Burn copies to a CD and offer to send one in the mail.
• Create a mini-application form. As opposed to a full-blown 1003, a mini-app, asking just the basics and permission to run a credit report, is less intimidating. Translate and print. Post it to your website and your FaceBook page. This form could also be included with the video CD you send in the mail (see above).
• Homebuyer seminars. The seminars should be an integral part of your ethnic marketing efforts. If you don’t speak the language, hire a translator. Show the video (see above) at your event. Pass out your mini-applications. Offer to provide a free copy of their credit report if they sign the authorization form and give it to you before they leave.
• Social media. A FaceBook Fan Page is just the ticket—and right now, you have a huge opportunity. I recently did a FaceBook search for loan officers who market to Hispanics and Asian Americans. I found practically nothing. Oh, I did find one loan officer who posted that she spoke Spanish and Portuguese, but the entire FaceBook page, including comments, was in English.
• Voice mail
Credit card companies, banks, large mail order houses do it—and you can too. Give them the option to "press 2" if they want to speak with someone in Spanish; "press 3" if…well, you get the idea!
There is nothing new here. However, you’ll find very few loan officers marketing mortgages to ethnic niches. I still don’t know a word of Chinese (or the different dialects) but my processor did. And together, we were able to create a niche market with no competition.
Karen Deis is president of
