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Black-owned Mortgage Companies
For those who want to support businesses that are committed to diversity and inclusion, Black-owned mortgage companies are emerging as a powerful option. These companies are not only providing competitive rates and top-notch service, but also a commitment to serving communities that have been traditionally underserved in the housing market.
Key Takeaways
- Many Black owned mortgage companies are primarily banks that offer mortgage options to their clients
- Black-owned mortgage companies remain crucial to the economy of the Black community and the US in general
- Several of them emphasize serving Black and Minority communities
- They offer various loan programs ranging from home equities and lines of credit to residential mortgages to merchant services
Disclaimers
The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on financial planning and financial management here. More on disclaimers here.
Definition of a Mortgage Company
A mortgage company is a financial institution whose principal activity is to provide mortgage loans. A mortgage company can be a credit union, a chartered bank or other financial institutions whose primary job is to provide mortgage loans to its clients.
Usually, the mortgage company is the original source of the loan and these companies might ask for funding from the original mortgage lender in order for them to get capital to fund the mortgages they are selling.
Importance of Black-owned Mortgage Companies?
The importance of Black-owned mortgage companies cannot be overstated, especially in the United States where the legacy of racial discrimination and wealth inequality continues to impact Black communities. Black-owned mortgage companies offer a range of financial services, with a focus on providing mortgages and related services to Black families and communities.
Black-owned mortgage companies can also offer unique insights and perspectives that traditional financial institutions may lack. Many Black-owned mortgage companies are founded and led by individuals with direct experience of the challenges faced by Black families and communities in accessing financial services.
This firsthand knowledge and experience can help these companies to better understand and serve the needs of their clients, including those who may have been previously overlooked or underserved by traditional financial institutions.
The Impact of Black-owned Mortgage Companies?
Black-owned mortgage companies emerged in response to the historical exclusion of Black individuals and communities from mainstream financial institutions, including banks and mortgage companies.
Since, Black-owned mortgage companies have continued to play a key role in promoting access to financial services and addressing historical disparities in access to homeownership and wealth building opportunities. While progress has been made in recent decades to address racial discrimination and promote greater financial inclusion, the legacy of historical disparities and discrimination continues to impact Black communities. Black-owned mortgage companies remain an important source of financial services and support for Black individuals and communities seeking to build wealth and achieve greater economic security.
Black-Owned Mortgage Companies
There are several firms in the mortgage industry largely owned and led by African Americans.
1. Liberty Bank
Liberty Bank is a Black-owned bank that has been serving Black and other communities in the United States for over 40 years. Founded in 1972, Liberty Bank has a long history of providing financial services to underrepresented communities, with a focus on affordable housing and small business lending.
Today, Liberty Bank is one of the largest African American-owned banks in the country, with branches in Connecticut, Massachusetts, and Rhode Island. The bank is the third largest bank in Connecticut and is the oldest mutual savings bank in the US. The establishment has its headquarters in Middletown, and 60 banking offices throughout the States.
Among Black-owned banks, Liberty bank has managed to have a widespread network. As a result, the services offered by the bank have become very accessible to a lot of Black-owned mortgage lenders in the US. Some of the loans that the bank offers include home equity loan, line of credit and commercial real estate loans. Aside from mortgages, other services offered by the bank include savings, cash management, checking, electronic services etc.
In addition to its banking services, Liberty Bank is also committed to community development and social responsibility, with a range of programs and initiatives aimed at supporting economic growth and financial literacy in the communities it serves.
2. Legacy Home Loans
Legacy Home Loans is one of the best minority-owned mortgage companies that has its headquarters in Las Vegas, Nevada and branch offices in North Carolina, St Louis, and Missouri. It is the nation's largest Black-owned mortgage company.
With a team of experienced and knowledgeable professionals, Legacy Home Loans is dedicated to helping its clients navigate the complex world of home financing and achieve their financial goals. The aim of the firm is to help and empower the African American community in the US to build sustainable wealth through home-ownership in order to leave behind powerful family legacies.
Legacy Home Loans is committed to providing exceptional service and support to its clients. Founded in 1998, Legacy Home Loans has become a leader in the mortgage industry, with a focus on providing personalized lending solutions to increase Black home-ownership.
Legacy Home Loans offers a wide range of mortgage products, including conventional, FHA, VA, and USDA loans, as well as refinancing options. In addition to its lending services, Legacy Home Loans is also committed to giving back to the community, with a range of charitable initiatives and partnerships aimed at supporting underrepresented communities and promoting financial education.
3. Alamerica Bank
Alamerica Bank is a Black-owned bank that is dedicated to providing services to underserved communities. The bank prides itself in offering personalized services to its clients, regardless of their background, and has been serving the communities of Birmingham, Alabama for over 115 years. Founded in 1902, Alamerica Bank has a rich history of providing financial services to underrepresented communities, with a focus on promoting economic development and financial empowerment.
Alamerica Bank is committed to supporting local businesses and individuals, and has played a critical role in helping to revitalize the neighborhoods it serves. Among the services that they offer are line of credit, working capital, lot loans etc. In 2014, the institution was listed as Birmingham’s strongest capitalized institution. Today, Alamerica Bank is a community-focused institution that offers a range of banking services, including personal and business checking and savings accounts, loans, and online banking.
4.Broadway Federal Bank
Broadway Federal Bank is a Black-owned bank that has been serving the Los Angeles community since 1946. Founded by a group of African American businessmen, Broadway Federal Bank has a long history of providing financial services to underrepresented communities, with a focus on promoting economic empowerment and community development. The institution is also a member of the FDIC. Some of the services offered by the bank include savings, checking, money market accounts, etc.
Today, Broadway Federal Bank is a community-focused institution that offers a range of banking services, including personal and business banking, loans, and online banking. Broadway Federal Bank is committed to serving the needs of its clients, and has a strong track record of supporting local businesses and individuals. With a dedication to social responsibility and community involvement, Broadway Federal Bank works for positive change in the Los Angeles area.
In 2021 Broadway Federal Bank merged with City First Bank in Washington D.C. to form the biggest Black-owned bank and Black-led Minority Depository Institution (MDI) in the United States. The newly formed institution has more than $1 billion in assets under management and approximately $850 million in total depository institution assets. The publicly-traded Broadway Financial Corp (BYFC) remains the bank holding company after the merger.
5.Carver State Bank
Carver State Bank was founded on Feb 23rd 1927. Initially, it was known as the Georgia Savings and Realty Corporation. It was one of the first African American-owned banks in the country, and played a critical role in providing financial services to underrepresented communities during a time of widespread discrimination and segregation.
Originally, the institution served as a private bank and a real estate investment and management for the founder, Louis B. Toomer and his friends. Carver became a full-service commercial bank in 1962 and that's when the bank's name also changed. Some of the services offered by the company include direct deposit, money orders, funds transfer etc.
Today, Carver State Bank continues to be a community-focused institution that offers a range of banking services, including personal and business banking, loans, and online banking. Carver State Bank is committed to promoting economic development and financial empowerment, and has a long history of supporting local businesses and individuals.
6. Citizens Trust Bank
Citizens Trust Bank was established in 1921 with the aim of serving the African American population in Atlanta, GA. Founded by business leader Heman Perry, Sr., Citizens Trust Bank played a critical role in providing financial services to African Americans during a financially difficult period for the Black community.
Till date, the institution continues to financially empower communities in Atlanta; Birmingham and Eutaw, Alabama communities. Among the services offered by the institution are checking, residential mortgages, cash management, merchant services etc.
Today, Citizens Trust Bank is a community-focused institution that offers a range of banking services, including personal and business banking, loans, and online banking. Citizens Trust Bank is committed to promoting economic development and financial empowerment, and has a strong track record of supporting local businesses and individuals.
7. One United Bank
One United Bank is the largest Black-owned bank in the country, with branches in California, Florida, and Massachusetts, as well as online banking services available nationwide. Founded by Kevin Cohee and Teri Williams, One United Bank has a mission to empower underserved communities through financial education and access to capital in order to close the racial gap.
One United Bank offers a range of banking services, including personal and business checking and savings accounts, loans, and online banking. With their active presence, the U.S Department of Treasury awarded them the highest Bank Enterprise Awards and they were named a Community Development Financial Institution or CDFI.
In addition to its banking services, One United Bank is committed to promoting economic development and social justice, with a range of community programs and initiatives aimed at supporting underrepresented communities. With a strong commitment to social responsibility and community involvement, One United Bank is a powerful force for positive change in the banking industry and beyond.
8. Industrial Bank
Industrial Bank has been partnering with big and small businesses, homeowners and customers with personal bank accounts in the Washington DC community since 1934. Founded by Jesse H. Mitchell, Industrial Bank played a critical role in providing financial services to African Americans during a time of widespread discrimination and segregation.
Today, Industrial Bank is a community-focused institution that offers a range of banking services, including personal and business banking, loans, and online banking. The bank also invests in the community by offering a variety of programs, including financial literacy education and scholarships. They continue to support Black people in their quest for home ownership. Some of the services provided by the bank include checking, savings, investments, mortgages etc.
9. Seaway Bank
Seaway Bank and Trust Company was a Black-owned bank that served the communities of Chicago, Illinois, and Milwaukee, Wisconsin from 1965 until its closure in 2017. Founded by a group of business leaders led by Jacoby Dickens, Seaway Bank played a critical role in providing financial services to African Americans through widespread discrimination and segregation.
The bank grew to become the largest Black-owned bank in the Midwest, with a mission to provide accessible banking services and promote economic development in underserved communities. Seaway Bank offered a range of banking services, including personal and business banking, home mortgage loans, mobile banking, home equity, lines of credit and online banking.
The bank was also committed to social responsibility and community involvement, with a range of programs aimed at supporting local businesses and individuals. Unfortunately, due to financial difficulties, Seaway Bank was closed by the Federal Deposit Insurance Corporation (FDIC) in 2017, marking the end of an important era in the history of Black-owned banking.
10.City National Bank
City National Bank is a bank that's focused on crafting and offering personalized services and banking experiences to its clients. The bank has also played a major role in developing urban Black communities. The bank offers a variety of services and some of them include checking, savings, wealth planning etc. They offer their customers good rates and a great customer experience, which makes them a reliable option.
Today, City National Bank offers a range of banking services, including personal and business banking, wealth management, and investment services. The bank is known for its focus on personalized service and customized financial solutions, and is committed to helping clients achieve their financial goals.
City National Bank is also committed to social responsibility and community involvement, with a range of programs aimed at supporting local communities and promoting economic development. With a strong reputation for quality and reliability, City National Bank is a trusted financial partner for individuals and businesses across the United States.
Bay Street Capital Holdings
Bay Street Capital Holdings, headquartered in Palo Alto, CA, provides independent investment advisory, wealth management, and financial planning services. They prioritize managing total risk and volatility while maintaining and increasing total assets and income.
Founder William Huston was named among Investopedia's Top 100 Financial Advisors for 2021, with only two out of nineteen recognized firms in California being Black-owned. He leads the firm alongside Ekenna Anya-Gafu CFP, AAMS, who is based in Scottsdale, Arizona, and is a recognized Best Financial Advisor known for his responsiveness, friendliness, helpfulness, and attention to detail.
Bay Street supports diverse and emerging fund managers and entrepreneurs and was a 2021 finalist in the Asset Manager for Corporate Social Responsibility (CSR) category among over 900 US firms.
Sources
https://www.investopedia.com/black-owned-banks-by-state-5024944
https://www.cityfirstbank.com/
https://www.carverstatebank.com
