AgentIndustry News

Minority buyers still face uphill battle in getting mortgage credit

Zillow and HMDA reports highlight ongoing disparities in mortgage loan application acceptance rates among different racial groups
  • Minority borrowers are still facing higher mortgage denial rates than their white counterparts, according to a Zillow analysis of HMDA data.
  • Denial rates for minority borrowers are especially a problem in: New York and Northern New Jersey, Chicago, Los Angeles and Dallas-Ft. Worth, Texas, Zillow said. The company said minority mortgage denial rates are lowest in San Jose, Calif.; Columbus, Ohio; Sacramento, Calif.; Nashville; and Kansas City, Mo.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

A recent Zillow Group analysis of mortgage access and homeownership rates shows that it is becoming increasingly easier for many Americans to get approved for home loans, but minority borrowers are still facing higher mortgage denial rates than their white counterparts. Zillow’s analysis adds insight into the most recent Home Mortgage Disclosure Act (HMDA) data, released in September, which showed that black, Hispanic and Asian borrowers had notably higher denial rates in 2014 than white borrowers. file404 / According to Zillow, which compared how different racial groups experienced the housing crisis, black and Hispanic borrowers are lagging behind in the recovery. About 28 percent of mortgage loan applications submitted by black borrowers were denied in 2013; this number fell slightly to around 25 percent last year. For Hispanic applicants, the denial rate was around 22 percent in 2013 and around 19 percent in 2014. For Asian applicants, the denial rat...