Cultural nuance and how to speak the same language as Asian American borrowers

In honor of Asian American Pacific Islander (AAPI) Heritage Month, we interviewed Karen Chiu, Builder Development Manager at New American Funding, to learn from her experience and gain insight into the challenges many Asian Americans face in homebuying and in the mortgage industry. Karen has over 20 years of experience as a top mortgage loan originator, and she specializes in working with first-time homebuyers and foreign nationals to obtain the American dream of homeownership. She's also an active member of the Asian Real Estate Association of America, which works to improve homeownership among Asian communities.

Karen discusses why purchase business is especially meaningful to her, why she actively meets and supports other LOs in her organization, how her recently licensed daughter took her first loan app in fifth grade, and why Asian American representation is critical.

Thanks for listening to Mortgage Connects, an MGIC podcast. If you have questions, comments, or want to get involved, send an email to mortgageconnects@mgic.com.

Looking for even more expert insights? Check out our mortgage industry content portal, Mortgage Connects knowledge hub. Subscribe today so you don't miss out on the latest! Subscribe

Transcript

Concepcion Guerrero (00:04):
So welcome to mortgage connect by MGIC, bringing you the latest insights from top mortgage professionals around the industry. I'm your host Concepcion Guerrero. Joining me today is Karen Chui builder development manager at new American funding. Karen has over 20 years of experience in the mortgage banking industry and extensive practice in originating home loans for both purchase and refinance. Her specialties include working with first time, home buyers and foreign nationals to obtain the American dream of home ownership. She's a firm believer in excellent customer service and her vast way of awards demonstrates that she has been repeatedly honored as one of the nation's top originators by multiple national publications. In each of her six years at new American funding, Jill was named to the company's president council, an honor, reserved for the company's top originators. She was also a member of the national charity league, Zen Marino chapter, a mother daughter philanthropy group that focuses on community service and is an active member of the Asian real estate association of America, which works to improve home ownership among Asian communities. She's also been featured on the Scottsman sky for top purchase in volume dollar, as well as being named top woman originator. Karen, it is so nice to have you join us today. How are you doing?

Karen Chui (01:25):
Good, good, good morning.

Concepcion Guerrero (01:27):
Great. Thank you. Now the entire month of may MGIC is celebrating Asian American Pacific Islander heritage month and being a Chinese immigrant yourself, can you tell me what the, to you?

Karen Chui (01:44):
I think it means a lot to me because I, my great grandfather came to this country back in the 1950's, and then he, and then he went back to Hong Kong, never being a US citizen because of the Chinese exclusion act. But, and I immigrated to United States from Hong Kong when I was 17 year old. I've been here 30 something years, I would say, but, and my husband was born here as an Asian American. So among all of us, I think this celebration month will flew us all together as a representation of being Asian American. And I think having representation is important and about the celebration and how far we have gone from, you know, a hundred years ago of the Chinese immigrant to now it's very important. Also the most important thing is to recognize us as a cultural force of being Asian American, we're Americans with Asian blood, which we are contributing members of, you know, the country, our country. So

Concepcion Guerrero (02:53):
Excellent. Thank you for that. Karen now, you know, in your intro I read off some impressive list of awards that clearly prove you've delivered a fantastic experience for your clients. And more importantly, that you're a dedicated, hardworking woman. Now I'm not in LA, but I've heard from our sales rep that when she walks into your office, you have many of those awards displayed throughout. And to me personally, I think that's very inspiring, but can you tell me some of those awards that you've received in your career?

Karen Chui (03:30):
<Laugh> this is actually what our marketing department does. I don't really talk much about it, but I'm in a New American Funding for eight years and out of the eight years, the recent seven years I've been named president council top gun, which is 2%, top 2% of our company. AREA started doing the, which is the Asian Real Estate Association. They started doing the eight top of originator in 2016. I've been on the, a list for every year. I'm also top 100 for the number for minorities. And for Scotsman's guide, I am the top purchase volume top dollar volume as well as the top woman originator for the last four years. So

Concepcion Guerrero (04:19):
That's impressive. That's wonderful. And you should continue to shine and show off those awards. That's, that's not a, you know, it's not something that everyone achieves. So that's, that's wonderful. And you know, is there, I'm curious, is there one recognition or award that has been the most meaningful to you and why?

Karen Chui (04:38):
I think the most loans close award means the most to me because it indicate to me how many families I have helped to move into the dream homes. I primarily do more purchases than you know, refi. That's how many families life I have changed, and that is more meaningful to me than, you know, the dollar volume part of the business. So

Concepcion Guerrero (05:03):
That's excellent. I'll continue to shine those awards, dust them off and continue to <laugh> to put them out there for everyone to see that's impressive. Now new American funding is very well recognized throughout the industry as one of the most diverse workforces in the entire country with that mindset, that all employees are part of a work family. And you mentioned to me that you were part of the president council with them and were encouraged to share your story and success to other employees, but can you tell me why it is so important for companies to have the opportunity to learn from others within that same organization?

Karen Chui (05:43):
I think that's how we all grow. I remember that, you know, earlier on in my career, before I have the book of business I have today, I would go to the sales rally and really want to have a couple words with the top producer to learn from what they do, because I think that's the best way to learn. Maybe it's just a hint that they have. Maybe they say something simple. Like when people say, thank you, you say my pleasure instead of you're welcome little hints like that is, you know, helping so recently about last month I'll come. The person's council is about all the top producers. But last month we have a south Cal rally south Cal sales rally that invited all the originators in southern California. It's a two hour drive for me. And at first I'm like hesitant because in the middle of the day and it's disrupting my day, I will back traffic in Los Angeles, but I decided to go because I remember as when I was an up and coming loan officer, you know, I would really want to meet the top producer and ask them questions about their success.

Karen Chui (06:48):
Now that I have book of business that is, you know, ongoing, I want to meet and support the new LOs. I do have a lot of people, people during that meeting to come up to me and ask for advice, or just congratulate me, or just asking, like, what should I do? Do you have any hints? I feel fulfilled when I was giving the opportunity to be inspiring force for the, for the other loan officers. And that is also goes into the culture of Nav cause we have what you call the Nav 360, which we are all in it together and we are, always helping each other. And that's something I really appreciate being part of new American funding with the culture, the way it is, we all help each other.

Concepcion Guerrero (07:33):
That's wonderful. Yeah. And I think it's very important, especially like you mentioned, you know, the, having those new you loan officers or anyone new in the industry for that manner, you know, to look up to someone, especially a minority woman, as successful as you to look up to you and say, you know, if she can do it, I can do it. But you know, I wanna know how she did it. Is there something that I can do you know, that will help me get to where she is. So that's, that's excellent. Now speaking of New American Funding, creating more of a family environment, you have your husband and your daughter working alongside you and your daughter recently graduated from college and got me thinking for many of us in the mortgage world, this isn't really something that we want to school for, and probably wound up in the mortgage path by accident. So I'm curious, what made your daughter decide to work alongside you and learn the trade?

Karen Chui (08:29):
I, you know, I took time off when I had my children. When I came back, my oldest daughter was about kindergarten when I came back to work and started originating. I actually, as a part-time, you know, mom <laugh> housewife and trying to do this on the side and it had a life on its own and become what my career is today, but my daughter always had it in her. I remember that I would bring her to the office and she'll always listen when she was in fifth grade. I remember that one day she came home and say, mom she said, Mitchell Kim's mom says she's getting a refinance and what can I do? I said, that's nothing you can do. I, she had to fill a long application. So she took one of my 10-03s and took it to work. And then the next day she actually got, you know, Mitchell Kim's mother to fill out the form and send it to me and tell me to call her. So my daughter took her first long app in fifth grade. So I think she really was passionate about it back. Then she understand the concept of that. She is recently licensed, but she has been knowing what we need to do for a long time. I always give my children free range of what they want to do. And I think earlier on from middle school, high school, she's always know that this is what she wants to do. So

Concepcion Guerrero (09:58):
That's amazing a fifth grader already, you know, learning and, you know, learning how to ask the right questions and seeking help to, you know, to help others more importantly. That's amazing. <Laugh>, you know, I can't wait to see how she grows with your guidance and, you know, you're taking her under the wing. I'm sure I'm gonna be interviewing her in a couple years too, which I can't wait <laugh>

Karen Chui (10:19):
I also do. So.

Concepcion Guerrero (10:20):
Yeah. Now I want to switch gears here for a bit and talk about the Asian demographic in general. They have the highest home ownership rates of any minority group, but they still trail white home ownership. And especially when you control for income and education, why do you think home ownership for Asians is lagging?

Karen Chui (10:41):
I think we have a few struggles. Asians are good savers, but a lot of times they do not trust institution. So they have money either overseas, a lot of immigrants have money overseas. They don't understand that we have to season it and they have lost transfers. Basically they don't live their life. You know, according to a normal American you know, our underwriting guideline, they have cash based income. They have money transfer all over the place. They have family buying for each other. So, I think it's a matter of education when it's a build file and we have a couple months to work on it. When I explain to them what our underwriting loan process is like, they usually understand, and they would generally speaking be very, very accommodating. Also recently have new guidelines that have come out for the minority ownership, CDFI guideline that we are presenting to the Asian community so that they don't have to feel like they have to wait until they have enough money to buy any houses, cash. So we are working on multiple angles. So in terms of education and as well as loan program to improve Asian home ownership further than what it is right now.

Concepcion Guerrero (12:11):
Now in your experience, when working with the Asian consumer, what would you say are the barriers that they face in the home buying process and how, or what can loan officers do to help?

Karen Chui (12:25):
I think the language barrier if we have more people that speaks the language, it would be helpful because a lot of language does not understand. It's not only also the cultural understanding of what's going on because in Asia, a lot of home buying are on leasehold is not on perpetual ownership. So that's something we need to educate them. So there's a huge difference between where, what home ownership financing is like in America, which has a lot of consumer protection versus the Asian countries that do not have a lot of consumer protection. So I think by educating them about the home buying process and the protection our government has for, for, for our consumers, it will be critical of having them understand that if you have a 30 fix year fixed program and you pay 360 payments on time, then you will own the home simple stuff like that, that we take it for granted, as Americans has to be explained to the Asian consumer so that they will understand that if the housing prices go down and you have a 30 year fixed loan, you are not gonna have to lose your house.

Karen Chui (13:45):
And those are the education that I think that cross cultural education that I think we need to offer to the Asian consumer.

Concepcion Guerrero (13:55):
Yeah, no, that's interesting. You know, obviously I've had more experience in dealing with the Hispanic consumer, but I think, you know, both Asian and, and any diverse segment in that manner, you know, I think the majority of, of your workload will be educating and, you know, it, it helps, helps to educate those minority consumers because in the long run, you mention trust, you know, if you're educating, taking the time to explain to them all the nuances and the process that the, you know, home ownership entails at the end of the day, you're building that trust and you're building a, a client for life and generations to come. So thank you for mentioning that. Now, you know, many, many look at owning a home as the American dream. What do you think the perception or importance of owning a home among Asian Americans are, or is?

Karen Chui (14:45):
I think Asian American, everyone deserves and wants a piece of America. Everyone come to this country wanting to have a piece of America, Asian, particularly don't like renting. They will save and scrape, don't eat, you know, save on gas in order to afford to have a home. Beyond Asian American, I think everyone deserve to have a piece of America, but I remember when we first came to this country, my parents basically put every dime we have towards the down payment of our first home here in California. And that's a cultural attribute that I just think that they just want to be part of something. If we own a piece of land, it's better for us to feel like we are part of the bigger picture of being American

Concepcion Guerrero (15:37):
That's right. That American dream. Now I'm curious, are there any cultural nuances that mortgage lenders or employees in general tend to miss when it comes to the Asian American, Pacific Islander borrowers?

Karen Chui (15:53):
I believe we need to be more patient than than for the Asian American borrowers, because they're sensitive to numbers, they're sensitive to rates and they simply, a lot of them is coming from a different culture that do not understand the security and the wonderful programs that American the American economic system has offered them. So once they understand they'll feel better about it. So a lot of people think the Asian people the Asian buyers are very sensitive to rate and to numbers, but that's because it's a universal language and they want to understand that. But in terms of execution, the home ownership, I think we just have to be extra patient because the system in Asia for different countries that I'm aware of is very different from what we have in America. So to explain to them what a 30 year fix is, even though it's very simple for the rest of us that have been living here for a long time, but for new immigrants, it's a new concept of what a 30 year fix is. There are mortgages in Asia that has a adjustable rate for every month and it can change every month. And that's something that just to explain to them the 30 year fix and the security of having a 30 year fixed loan is something that needs patience and understanding where they come from to explain to them so that they can understand where our system come from, so that they would appreciate what we have as mortgage lenders to offer them.

Concepcion Guerrero (17:35):
Interesting. Yeah. Going back to that educational aspect that you're gonna be doing the majority of with the Asian consumers. Very interesting. Thank you for that. Now, I'm just curious, you know, here, as we close up, do you have any fun clients coming up for, for, you know, the summer months or any travel that you plan on doing?

Karen Chui (17:52):
<Laugh> we actually traveling my husband and I are traveling to Oahu and in Hawaii, end of this month for our president's council that's will be good, cuz I get to see other New American Funding colleagues that all the, that we get to have a good get together and celebrate our 2021 years. And after that in may, my son has been on a IB program studying in Wales, United Kingdom and they did just announce that they will have in-person graduation. So my family and I will be traveling to United Kingdom for his graduation. And then we're going to London and Paris for a week. So I'm already for that vacation. <Laugh>,

Concepcion Guerrero (18:38):
I'm excited for you. That sounds like a fun packed summer. Good luck. Enjoy Hawaii. Enjoy France, enjoy all your travels for sure. Karen, thank you very much now. Thank you very much for your time today. We truly, truly appreciate it. And thank you all for listening for the latest industry insights, subscribe to mortgage connects on Apple, Google podcast, Spotify, Amazon music, or go to mortgageconnects.com.