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Danbury-based Promontory MortgagePath LLC has launched an initiative to support minority depository institutions and community development financial institutions in their efforts to expand access to credit and homeownership in underserved communities.
Promontory MortgagePath, which provides digital mortgage and tech-driven fulfillment solutions, will partner with minority-owned banks and credit unions, as well as CDFIs, to offer exclusive pricing, resources and joint-marketing opportunities.
“The challenges facing community banks in low- to moderate-income areas will not be fixed immediately,” Promontory MortgagePath CEO and founder, Gene Ludwig, said in a statement. “But we must take action now to ensure that these vital institutions are supported because when these institutions thrive, the positive impact on their communities is profound.”
Promontory MortgagePath said in its statement that, without the right tools, minority-owned banks that lack access to cost-effective mortgage fulfillment technology or that do not offer mortgage lending could miss out on their share of the trillion-dollar mortgage origination market.
“Not only does this put these institutions at a disadvantage relative to their peers, but it also limits wealth-building opportunities for the communities these institutions serve,” the company said.
Ludwig, a former U.S. Comptroller of the Currency during the Clinton administration, has long advocated for underserved communities, spotlighting the unique economic challenges they face, the statement said.
The Community Development Bankers Association (CDBA) earlier this month endorsed Promontory MortgagePath’s mortgage fulfillment services and point-of-sale technology, recognizing the firm’s alignment to CDBA’s mission of promoting financial inclusion and opportunity among people and communities often left out of the economic mainstream.
Promontory MortgagePath said it plans to work with the CDBA to identify strategic partners to participate in the initiative. MDIs and CDFIs that join the initiative will use Promontory MortgagePath’s technology, U.S.-based mortgage fulfillment services and robust joint marketing program at an aggressive discount.
“MDIs and CDFIs play a vital role in expanding access to credit and building wealth in the communities they serve,” said Paul C. Katz, managing director and head of bank relations at Promontory MortgagePath. “Whether they are seeking to establish or grow their mortgage operations, Promontory MortgagePath is committed to partnering with these institutions to provide additional pathways to homeownership, and we highly encourage them to join the initiative.”
