The Change Company, America’s Community Development Financial Institution (CDFI), announced today its partnership with Netflix to expand Black homeownership in America.
March 01, 2021 10:14 AM Eastern Standard Time
Originally published on Business Wire
IRVINE, Calif.--The Change Company, America’s Community Development Financial Institution (CDFI), announced today its partnership with Netflix to expand Black homeownership in America. The Netflix investment in affiliates of The Change Company is focused on bringing racial equity to home lending by financing Black homeowners, fairly and responsibly.
Empowered by its partnership with Netflix, The Change Company and its home loan subsidiary also announced the launch of its Black Homeownership Initiative to lend over $1 billion to expand Black homeownership. The Change Company will facilitate its outreach to underbanked borrowers in Black communities through its network of over 500 lenders who utilize The Change Company’s proprietary origination platform, lending products, and technology.
Chris Gardner, Director of The Change Company, stated, “It is critical to eliminate the wealth gap and break the pattern of poverty in our Black communities. Homeownership is a critical and necessary part of the solution. Our partnership with Netflix will enable thousands of Black Americans to achieve ‘Happyness’ for themselves and their families.”
“Black and other historically marginalized leaders have been fighting to better their communities for decades but have lacked the capital to do so. That is why Netflix invested $10 million in The Change Company’s initiative as part of our initial $100 million commitment to support Black communities,” said Netflix Treasury Director Shannon Alwyn. “We invite more companies to join the movement and support visionary programs like The Change Company’s Black Homeownership Initiative.”
Rev. Everett Bell, Chair of The Change Company’s Community Board, stated, “For far too long, systemic racism has limited the ability of Blacks to access the dream of homeownership. While many have acknowledged this problem, very few have been willing to engage their resources to right this wrong. Netflix’s Black Economic Initiative has not only created the catalyst for change but has provided the capital necessary to help The Change Company increase Black homeownership and bring down the structural racial inequities that continue to infect traditional financial institutions. We thank Netflix for its leadership and partnership.”
Martice Mills, Head of Strategy for The Change Company, added, “I came to The Change Company to help solve the racial inequities that plague banking and lending. Our partnership with Netflix allows us to accelerate our lending in underserved communities that are filled with qualified, credit-worthy borrowers – like my hometown in South Los Angeles.”
BC Sliver, President of Change Finance, stated, “Growing up in the inner city of Atlanta, I dreamed of one day helping my community to solve the problems it faced. I now have the ability to help address the economic inequality and racial inequity faced by many families in the Black communities across the country. Today, the average Black family that is fortunate enough to get a home loan pays interest and fees of over $65,000 more than a white family with a similar loan. Not at Change. I am proud that The Change Company, with partners such as Netflix, is able to continue to bring racial equity to banking and lending."
In 2020, The Change Company originated 20,000 home loans, 70% of which were to Black, Latino, and other underbanked borrowers. The average home loan to our Black borrowers was for approximately $290,000, with an interest rate of 3.1%, and an LTV of 80%. The Change Company expects to originate over $10 billion in loans to over 50,000 borrowers in 2021.
“Strong, socially responsible capital partners are critical to The Change Company’s ability to expand homeownership for minority and other underserved borrowers,” Steven Sugarman, Founder of The Change Company, added. “We are humbled by our partnership with Netflix and are excited by the opportunity to empower real, positive change in America’s Black communities.”
Performance Trust Capital Partners served as exclusive financial advisor and Michelman & Robinson, LLP served as legal counsel to affiliates of The Change Company with respect to Netflix’s investment.
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