Act now to make every month National Homeownership Month.

WITH THE ADVENT OF NATIONAL Homeownership Month, the mortgage banking profession has an opportunity to show its true colors. As the administration provides a strong leadership voice with its homeownership initiatives, I also call on each of you to take some time this month to plot out strageies for increasing homeownership among minority, lower-income and underserved individuals and families.

Making homeownership accessible to all Americans is my passion. I've spent more than five decades in the mortgage business, and those who have heard me speak on this topic know the depth of feeling I bring to it. In the pages of past issues of this magazine, I've frequently discussed the barriers at the root of the persistent disparity in homeownership levels among lower-income and minority individuals and families, and the structural obstacles that we must overcome in order to close this homeownership gap.

As mortgage bankers make plans and commit themselves to helping consumers from all walks of life to realize the dream of homeownership, there are several areas that require attention. Two of the largest are loan product innovation and homebuyer education.

Creating products to fit specific needs

Eliminating the down-payment barrier is critical to helping the underserved buy homes. And our industry is making strides to break down this barrier and level the playing field. Recent loan program innovations include zero-down-payment loans and loans requiring cash contributions of the lesser of $500 or 1 percent of a home's sales price. For qualified borrowers--especially those among the African-American, Asian and Hispanic emerging-markets population segments--these programs are having a positive impact and enabling people to realize their dreams. But we can do more to create products to fit specific needs.

Further innovation in underwriting guideline flexibility is a must. The mortgage industry must recognize cultural preferences, lifestyle and work options in order to tailor loan solutions to individual borrowers. For example, Countrywide Home Loans recently launched a new loan program that takes many different scenarios into consideration during the underwriting process. Features include income from part-time jobs and multiple jobs, and stated secondary income from jobs for which income is difficult to document. Other special considerations are the ability to use pooled funds from many family members, acceptance of non-occupant co-borrowers, and recognition of cash savings not held in traditional depository individual savings accounts.

[ILLUSTRATION OMITTED]

The benefits of creating innovative loan products are clear. First-time home-buyers, particularly those in areas where home values are high, need and deserve residential financing that fits their circumstances. These products should also address special circumstance such as that of a single parent or a family whose individual incomes may be quite modest, but as a group, are able to afford a home. As major lenders and the government-sponsored enterprises (GSEs) pioneer new ways to help everyone realize the dream of homeownership, I encourage every mortgage professional to become familiar with and embrace these innovations.

Empowering homebuyers through education

In many communities and neighbor-hoods, questions, doubts and fears prevent individuals and families from believing that they can realize their dreams and become homeowners. Creative product innovation will all be wasted effort if we do not reach out and help people understand home-buying and financing. As an industry and as individual lenders, we must communicate with consumers with empowering messages that show them homeownership is possible. We should also continue to seek ways to streamline the loan process, removing as many of the intimidating paper-intensive portions as we can, and finding ways to explain and guide borrowers through the parts of the process that cannot currently be streamlined.

Ensuring the future of mortgage banking

Closing the homeownership gap is not just the right thing to do; it's the foundation of future business growth. The emerging-markets population segments are growing rapidly. In mid-March 2004, the U.S. Census Bureau released projections estimating population growth in minority categories between the years 2000 and 2050. A quick review of the numbers include the addition of 67 million people of Hispanic origin, an increase of 26 million individuals in the government's "black" racial designation category, and Asian population growth of nearly 23 million. These numbers represent the homebuyers of today, tomorrow and well into the future. The mortgage industry must find ways to meet their financing needs.

An additional consideration for a strong, vibrant mortgage banking industry--one that meets the needs of all homebuyers--is the continued support of Fannie Mae and Freddie Mac, the cornerstones of the vitality of the nation's housing market. These GSEs have long been at the forefront of loan product innovation that increases homeownership among underserved homebuyers. Our industry's future and the future of generations of Americans eager to buy their first home depend upon the GSEs and the regulatory oversight provided by the Department of Housing and Urban Development (HUD)--the sole government agency with a pure housing mission.

June--National Homeownership Month--offers an excellent opportunity to plan, participate and do your part to close the homeownership gap. I encourage mortgage professionals throughout the nation to use this time to reach out to the underserved in local markets and to voice support for the secondary market framework that has successfully supported efforts to increase homeownership. There are many government agencies, nonprofit organizations and community groups eager and open to forming relationships with responsible lenders to achieve these goals. Find venues and participate in events where you can talk directly to potential homebuyers. Empower them to own a home this month--and every month.

Angelo R. Mozilo is chairman and chief executive officer of Countrywide Financial Corporation, Calabasas, California.