Building Hispanic Wealth through Homeownership Challenges

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Building Hispanic Wealth through
HomeownershipChallenges Opportunities

• By
• Ennio A. García-Miera
• Vice President Director, New Markets Group
• Luis del Pozzo
• Business Intelligence Manager
• Mortgage Specialist
• GMAC Mortgage Corporation

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Hispanics A Growing Economic Powerhouse

• Hispanic Buying Power
• 2007 863.1 Billion
• 2011 1.2 Trillion
• 450 growth 1990 - 2011

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Hispanic Homeownership Rapidly Growing

• Latinos are 11 percent of households, but
  accounted for 27 percent of net household growth
  1995-2005.

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GMAC Mortgage More Detailed Research

• Demographic Psychographic Study
• Comprehensive Customer Segmentation Survey and
  Analysis

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Findings

• In 2005, 65 of Latinos were likely or somewhat
  likely to be in market for a new home, additional
  home, or investment property in the next two
  years.
• 72 of Latinos renters had considered buying a
  home.
• 45 have owned or purchased a home in the U.S.

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More Findings

• At that time, 51 said they were very likely or
  somewhat likely to obtain a loan, such as a home
  equity loan in the next two years.
• 59 understood the importance of having a good
  credit history to qualify for a mortgage.
• 31 felt they had a good credit history 28
  felt they did not.

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• 9 Distinct Segments
• Established Traditional Latinos
• All American Latinos
• Establishing Newcomers
• Latino Urban Achievers
• Stable Mature Immigrants
• Self-Made Middle Class
• Striving Blue Collars
• Transient Workers
• Low-Income Strugglers

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History Matters How FICO Scores
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Homeownership Percentages Top Five vs. Emerging
Four Segments
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Recommendations A Multi-Faceted Approach
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