Industry News

Racial disparities persist in obtaining mortgages

Study finds minorities continue to be shut out of home-buying market

Many minority and lower income families continue to be shut out of the home-buying market because of serious racial and economic disparities in obtaining mortgages, according to a report released today by the Association of Community Organizations for Reform Now (ACORN). The group used data available under the Home Mortgage Disclosure Act to examine such factors as denial rates, number of originations and number of applications for borrowers of different races, ethnicities and incomes, as well as for borrowers who live in neighborhoods of different racial and economic demographics. ACORN looked at home purchase loans originated in 2003 and compared those figures with those from 2002, 1998 and 1993. In 2003, the country's home-ownership rate rose to 68.3 percent, but the rates differed greatly among different ethnic groups. Whites, for example, had a home-ownership rate of 75.1 percent in 2003, while the rate among African-Americans was 48.4, a slight decrease from a year prior. For L...