Posted on June 26, 2024
Boston — Twenty-five thousand low- and moderate-income families have become successful homeowners through a unique partnership that was celebrated earlier this week by state, community, and banking industry leaders.
"Housing advocates like MHP are working every day to expand homeownership in Massachusetts, especially within historically excluded groups. That's why I'm thrilled to be here today to celebrate an incredible milestone for Massachusetts – 25,000 new homeowners," said Lieutenant Governor Kim Driscoll. "Owning a home is the key to financial and upward mobility, and the ONE Mortgage program makes it easier to bridge the racial homeownership gap. Our administration is proud to support this work and this program."
This lending milestone was celebrated at Federal Reserve Bank of Boston where the ONE Mortgage program had its roots more than three decades ago. A Boston Fed study documenting pervasive racial bias in mortgage lending by Boston banks was leaked to the Boston Globe in 1989 and became front-page news. Then-Governor Michael Dukakis responded by ordering his cabinet members “to use every means at our disposal to ensure that every citizen has the opportunity to own a home regardless of race or national origin.''
The Massachusetts Housing Partnership (MHP) jumped into the fray and joined with the Massachusetts Bankers Association, the Massachusetts Affordable Housing Alliance, the City of Boston, and state government leaders to launch the SoftSecond Loan Program, which was launched in Boston in 1991 and expanded statewide in 1992. In 2013, the program was rebranded and re-envisioned as today’s ONE Mortgage program.
The state-funded, MHP-administered ONE Mortgage program breaks down barriers that otherwise prevent creditworthy families from buying a home. It includes below-market interest rates and low down payment requirements, does not require that borrowers pay for mortgage insurance, and is supported by high-quality homebuyer education.
“Today, we celebrate an extraordinary milestone as 25,000 low- and moderate-income families have achieved the dream of homeownership through a unique and collaborative partnership,” said City of Boston’s Chief of Housing, Sheila Dillon. “This achievement is a testament to the unwavering commitment of our state, community, and banking industry leaders, who have come together to create pathways to financial stability and homeownership. The City of Boston is proud to have supported this transformative program, and we remain steadfast in our dedication to helping even more families secure the stability and opportunity that homeownership brings through our own innovative initiatives like the ONE+Boston program. Together, we are building a brighter, more inclusive future for all.”
Three decades of dedication to closing the Commonwealth’s racial homeownership gap has yielded significant results. The ONE Mortgage program is offered by more than 40 Massachusetts banks and credit unions and supported by 37 homebuyer education course providers. More than 6,400 ONE Mortgages have been used to purchase two- or three-family homes, further opening the door to building generational wealth.
Five top ONE Mortgage lenders were honored at the event:
- Citizens Bank – Top Producer Award, Gold
- Eastern Bank – Top Producer Award, Silver
“Eastern Bank is a long-standing and proud supporter of the Massachusetts Housing Partnership,” said Quincy Miller, Vice Chair and President of Eastern Bank. “Creating paths to home ownership for so many in our local communities who might otherwise be left out is critical and in keeping with Eastern Bank’s mission and focus as a leading local bank. We look forward to continuing our work with MHP and to doing our part to help address the racial wealth gap through housing stability.”
- Rockland Trust – Top Producer Award, Bronze
“Rockland Trust is proud to be a valued partner with MHP,” said Robert Driscoll, SVP and Director of Residential Lending. “We know first-hand how important homeownership is and being a community bank, we take pride in helping our communities grow through homeownership.”
- Leader Bank – On the Move Award
Brook L. Ames, SVP, General Counsel & CRA Officer shared, "As a community bank, Leader Bank prides itself on reaching underserved communities to help them realize the dream of homeownership. The support of MHP through the ONE mortgage and ONE + Boston programs have been crucial to our success in reaching these communities, and we look forward to continuing our partnership in the years to come."
- BankFive – Rising Star Award
"BankFive is committed to the communities that we serve and are a proud supporter of the Massachusetts Housing Partnership," said Patrick Deady, Executive Vice President, Director of Residential & Consumer Lending at BankFive. "Unlocking homeownership and creating inclusivity in a difficult housing market aligns with our values as a mutual savings bank and we couldn't be happier seeing our communities thrive with these new homeowners."
This year alone, the ONE Mortgage has helped 493 Bay Staters purchase their first home, with households of color representing 69 percent of all borrowers. Among the mortgages originated in Gateway Cities, that percentage rises to 82. Some of the top communities served this year include Boston, Springfield, New Bedford, Haverhill, Lowell, and Worcester.
MHP Executive Director Clark Ziegler shared, “ONE Mortgage has proven to be the most successful tool that we have in Massachusetts to close the racial homeownership gap. It’s immensely gratifying to see the impact that our team and our partners have made in helping tens of thousands of Massachusetts households, especially those who have been historically excluded from the homebuying process, be able to purchase a home of their own.”
In the words of ONE Mortgage borrower Lilian Ayala, “Home is stability. Home is love. Home is where everything happens! Owning my own home has changed my life dramatically. It was part of my dream to provide secure shelter for my children. I feel stable. There’s nothing that can’t come true.”
"I'm always inspired when I meet people who were able to achieve their dream of owning a home thanks to the help of the Massachusetts Housing Partnership," said Ed Augustus, secretary of the Executive Office of Housing and Livable Communities. "This work is more important now than ever as we work together to open up opportunities for home ownership and make Massachusetts a more equitable and affordable place for everyone to live."
For more information about ONE Mortgage or our other homeownership products, call us toll free at 1-800-752-7131 or send us an email. For all other information, contact MHP Communications Manager Lisa Braxton at (857) 301-1526 or by email.