Narrowing the racial wealth and homeownership gaps in America

Homeownership is the greatest source of wealth for most people, and SPCPs are a critical tool in narrowing the racial wealth and homeownership gaps that persist in America.

This Toolkit is intended to facilitate mortgage lenders as they take on the process of considering and building Special Purpose Credit Programs. The Toolkit provides examples of SPCPs from leading Banks as well as other examples of SPCPs in the market. In addition, the Toolkit provides a host of resource information on the background and need for SPCPs, guidance and examples on the data analysis required, and other useful links to aid mortgage lenders in their work to bring more SPCPs to market.

Thank you for taking the time to review SPCPs and for seeking solutions that you can implement to increase your lending to underserved and economically disadvantaged populations.

This Toolkit has been provided as a mission service of the National Fair Housing Alliance and Mortgage Bankers Association, in partnership with the Homeownership Council of America.

NFHA has championed Special Purpose Credit Programs as an excellent tool for expanding credit access for underserved markets, including consumers who live in credit deserts and are credit invisible. We share a commitment with our industry partners to increase sustainable homeownership and grow our economy. SPCPs are an important tool to help shore up long-standing inequities that have prevented equal access to economic prosperity. We urge all lenders to use this toolkit to develop impactful programs to better serve borrowers of color, women, people with disabilities, and other underserved groups.

Lisa Rice

President and CEO, National Fair Housing Alliance

MBA is committed to bringing the mortgage industry together to develop effective policy and resources to help to close the racial homeownership gap. We have been at the forefront of encouraging regulators, the GSEs, lenders, and other industry stakeholders to enable the creation of SPCPs to increase mortgage credit availability to underserved communities.

The online toolkit is designed to provide useful guidance and data analysis for mortgage lenders that are interested in using SPCPs to serve economically disadvantaged communities as well as minority borrowers, most of whom lack generational wealth to fund a down payment.

Robert D. Broeksmit, CMB

President & CEO Mortgage Bankers Association

Why SPCPs are needed

Background, historical perspective, changing demographics, and current gaps.

Compliance and Monitoring

Sample checklist, resources, and case study for SPCP using market and lender data.

Data Analysis Examples

Sample checklist, resources, and case study for SPCP using market and lender data.

SPCPs are targeted lending products designed to specifically advantage an economically disadvantaged group of people. SPCPs can be created to benefit designated protected classes of people.

SPCP Basics

The process of building an SPCP begins with assessing the need for such a program, primarily using the public data sources of HMDA, ACS and US Census. We have a high-level guide support your planning process.

Get Started

Nonprofit organizations and Community Development Financial Institutions (CDFIs) can develop programs that are safe and responsible while mitigating legal and reputational risks.

Read the Report

*NEW* Our new Data Toolkit for Lenders provides market-specific data to support program design and creation of a written plan.

Check It Out

SPCP Toolkit Contributors

The professional nonprofit organizations who built this toolkit.

National Fair Housing Alliance

Mortgage Bankers Association

Homeownership Council of America

Urban Institute

Relman Colfax PLLC

Legal FAQs

Answers to the most commonly asked questions - not to substitute for legal advice.

Data & Design FAQs

Sample credit interventions for SPCPs and answers to common questions.

Legal Disclaimer: The information provided in this Special Purpose Credit Program Toolkit does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. As with any lending program, designing and implementing a SPCP raises a number of legal, compliance, and operational considerations, decision points, and risks. Readers of this Toolkit should contact their attorney to obtain advice with respect to any particular legal or regulatory matter. This Toolkit may contain links to other third-party websites. Such links are only for the convenience of the reader; the authors of this Toolkit do not recommend or endorse the contents of the third-party sites.