By: Zachary RossConsumer Behavior

Professor: D.S. Sundaram

Establish in 1968 Provides financial products and services

that help low, moderate, and middle income households buy homes.

Goal is to increase home ownership, particularly among undeserved population (minorities).

Fannie Mae recently commissioned a survey to look at the perceptions and knowledge of the home-buying process across ethnic subcultures. Three major areas were assessed, namely,

A) Reasons to buy a home. B) Knowledge about the home-buying

process. C) Confidence in the home-buying process. The results were as follows:

Knowledge about the home-buying process was assessed by the percentage of respondents who identified each of the following statements (S) as false (which they are) as shown

S1: Information on buying a home is only available in English.

S2: You need to hire an attorney to fill out your paperwork when you buy a house.

S3: If you want a mortgage, you have to accept a 30-year commitment.

Housing lenders are required by law to give the best possible rates on loans

The person buying the home pays the real estate professional.

You need to have a perfect credit rating to qualify for a mortgage.

1. What are the opportunities and challenges facing housing lenders and real-estate agents across ethnic subcultures?

2. Based on the information in Tables A, B, and C develop a strategy for targeting each of the following groups:

A. African-Americans B. English Hispanics C. Spanish Hispanics

4. Based on the information in Tables A, B, and C develop training materials for lenders and real-estate agents to enhance their interactions with consumers from various ethnic backgrounds. Analyze lenders and real-estate agents separately and develop materials relating to both verbal (written and oral) an nonverbal communications.