Freddie Mac, Lenders Collaborate to Launch Homeownership Themed Telenovela

Hot storylines meet meaningful messages in Nuestro Barrio (Our Neighborhood), a Spanish-language TV mini- series about Hispanic life in the United States. Nuestro Barrio is at the forefront of a new trend of television programming called “edutainment,” a combination of education and entertainment to produce programming that is both informative and engaging. The 13-episode series subtly educates viewers on important financial issues including money management, credit, homeownership, predatory lending and foreclosure prevention, which are played out against the traditional novela (soap opera) themes of romance, jealousy, greed and conflict.

Freddie Mac, one of the nation’s largest investors in residential mortgages, in collaboration with participating mortgage lenders — Bank of America and Bank of Texas Mortgage — view the series as a creative way to reach out to the rapidly growing Hispanic segment of homebuyers and to provide important financial information. The lenders are advertising on the series when it airs in some of their local markets and will use DVDs of the series for outreach in the communities they serve.

The Community Reinvestment Association of North Carolina (CRA-NC) produced Nuestro Barrio. CRA-NC is a non-profit consumer advocacy organization that also produces original programming for radio and television. Freddie Mac funded the production of Nuestro Barrio.

Nuestro Barrio will be shown on television beginning Sept. 27 in Austin, Dallas/Fort Worth, Houston, San Antonio and Phoenix; and Oct. 1 in Miami Fort/Lauderdale. The show aired earlier this year in North and South Carolina. CRA-NC is looking at additional markets for next year.

Telenovelas historically have been popular with viewers in Central and South American countries. With the growth of Hispanic households in the United States, the number of telenovelas shown here has increased in Hispanic and English language broadcast media.

“It is crucial to recognize the importance of educating minorities on becoming homeowners,” said Rep. Grace F. Napolitano, Chair of Congressional Hispanic Caucus. “Homeowners frequently become more empowered citizens and increase investment in their communities.”

Rep. Joe Baca of California added, “Millions of Latino families in communities across the United States want to pursue the American dream of owning a home. Nuestro Barrio will provide a valuable service by presenting information to help teach Latinos about the homebuying process and how they can protect themselves against predatory lending practices. It is an innovative program that combines education and entertainment to spread financial literacy, and I look forward to watching it.”

“Bank of Texas Mortgage Group is excited to participate in this first of its kind initiative to provide financial information to the Hispanic community,” said Tom Williams, vice president, Bank of Texas Mortgage Group. “We recognize how important homeownership is to families and neighborhoods. This effort will be of great benefit to the community. Nuestro Barrio is a chance for consumers to see the wide range of solutions mortgage lenders offer and how they may use these services to better manage their finances and work toward homeownership.”

“The U.S. housing market is changing, challenging the mortgage industry to develop new and creative ways to reach potential homebuyers,” said Paul Mullings, senior vice president of Freddie Mac. “Many Hispanic families do not pursue homeownership due to misinformation, lack of trust of financial institutions and language barriers. Educational telenovelas are a unique way to reach the growing Hispanic marketplace with accurate information and to help close the homeownership gap.”

The Nuestro Barrio Storyline

Filmed entirely in Durham, N.C. by CRA-NC, the show is in Spanish with English subtitles. The series subtly introduces valuable lessons on numerous topics including banking, credit and homeownership. The characters learn how to achieve their dream of homeownership, as well as how to recognize and avoid predatory lending practices.

The two major locations in the series are a family-owned restaurant and a nightclub. The owners of the restaurant, Manuel and Marisol, have lived in the U.S. for many years and have seen their restaurant become a gathering place for the community. They help their family and friends navigate life in the U.S. by sharing their experiences, offering guidance and connecting them to community resources.

Hispanic Homeownership Outreach and Education

“We are very excited that Freddie Mac had the foresight to see the value Nuestro Barrio can have in connecting viewers to important information, says Dilsey Davis, producer and director of Nuestro Barrio. “Nuestro Barrio strikes the perfect balance between drama and information, appealing to both a young vibrant immigrant population and crossing over to English speaking consumers who are eager to learn more about Latino culture and community resources.”

Mullings added, “Nuestro Barrio subtly spreads educational messages in a culturally-sensitive manner. Educating consumers about smart credit choices, helping them understand the importance of building and maintaining good credit, and demystifying the homeownership process will empower them with the skills and information necessary to get on the path to homeownership.”

The U.S. Census Bureau projects that over the next 15 years, minority households will comprise more than one-half of the overall increase in homeowners, with Hispanic households outpacing other groups.

Nuestro Barrio provides an opportunity for lenders to collaborate with housing counseling agencies. Housing counselors help potential borrowers improve their financial standing and prepare for the home buying process. Counseled homebuyers experience lower rates of mortgage delinquency. By working with housing counseling agencies, lenders can reach even more borrowers, including first-time homebuyers, minorities, immigrants and low- to moderate-income borrowers.

In addition, lenders can use the Nuestro Barrio DVD at homebuyer education workshops, housing fairs and community events. Many also plan to distribute the DVD to customers and other housing partners. The DVD includes an insert, or photonovela, that recaps the lessons learned in the series in a way that is memorable and fun to read.

“The opportunity for homeownership is now greater than ever before but we find far too many people are not aware that it may well be within their grasp,” said Glenda Gabriel, Bank of America Neighborhood Lending executive. “We are confident this innovative new approach will open new doors for reaching Hispanic consumers and providing them with valuable information delivered in a relevant way to help bridge the gap in financial education.”

“Nuestro Barrio is an innovative way of reaching more Latinos and educating them about personal financial planning and the importance of building wealth and assets through homeownership,” said Janet Murguia, president and CEO, National Council of La Raza, the largest national Latino civil rights and advocacy and organization in the United States.