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Product Development |
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The First American strategic markets product development strategy focuses on the research and introduction of products and services that directly address the most common barriers faced by minority and low to moderate income home purchasers.
We also focus on the unique business challenges and needs of real estate agents, lenders, home builders, and other trusted advisors who are committed to serving the minority and low to moderate income home purchasing community.
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Barrier #1 Lack of understanding of the home buying process
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Solution: Guaranteed Closing Costs
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The home purchasing process can be very confusing. One portion of the process that causes a great bit of frustration is unpredictability of closing costs. A first time home purchaser is given a quote of $2,500 for their closing costs. Six weeks later, and one day before it's time to close on the transaction, the buyer is presented with an updated statement of closing costs, which now reflects $3,400 in charges. The buyer is confused as to how this could happen, and either comes up with the additional cash needed to close, or is forced to cancel the purchase. In either case, the buyer is left with a very poor consumer experience. The First American bundled services division has introduced the industries first guaranteed settlement bundles.
[ click here for more information ]
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Barrier #2 Lack of capital to close
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Solution: First American Affordable Homeownership Settlement Bundle
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Built on First American's commitment to offer guaranteed settlement bundles, we have introduced a one of a kind product that offers qualified home buyers with up to a 25% reduction in out of pocket cash needed to close. The First American Affordable Homeownership Settlement Bundle combines title insurance, settlement, credit, flood, and home warranty products into a single product, with a single price. For families who have low-to-moderate incomes, the price for the product is reduced by an average of 25%.
[ click here for a sample price comparison ]
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Barrier #3 Lack of traditional banking and credit histories
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Solution: First American's suite of non-traditional and alternative credit products
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Many minority and new immigrant home purchasers do not have traditional banking relationships.
First American has introduced non traditional credit product solutions.
[ click her for more information ]
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Barrier #4 Lack of technology adoption
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Solution: First American Strategic Markets Technology Solutions
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The lack of consumer knowledge and use of technology by practitioners in the minority housing market has contributed to the lower rate of homeownership amongst minority households. The minority practitioners who don't use technology like DU, DO, or LP often times only present hopeful borrowers with one or two lending choices. If they don't fit they are often are put into a sub-prime loan. These consumers do not get exposed to the full range of loan products and housing inventory that are readily available in the general market. First American will address these deficiencies through programs that:
- Educate the consumer on personal finance
- Educate the real estate agent practitioner to leverage technology
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| First American. All you need to know. |
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More Information |
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Downloads
Download the Strategic Markets Brochure. It contains all the information seen here in our Product Development Section.
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Affordable Homeownership Settlement Bundle