Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Black Mortgage Applicants Denied at More Than Twice the Rate of Whites
Zillow.com ^ | Apr. 19, 2018 | Sarah Mikhitarian

Posted on 05/05/2018 1:24:31 PM PDT by E. Pluribus Unum

In 2016, 20.9 percent of black borrowers and 15.5 percent of Hispanic borrowers were turned down for a conventional loan; at the same time, just 8.1 percent of white and 10.4 percent of Asian applicants were denied a conventional loan. Blacks in the mid-1990s were roughly twice as likely to be denied as whites. In 2016, blacks were 2.6 times as likely to be denied a conventional mortgage as whites. Borrowers in suburban areas had the best chances of being approved for a mortgage – 8.4 percent of all suburban homebuyers were denied for a conventional loan in 2016, while 10 percent of all urban borrowers and 11.5 percent of all rural borrowers were turned down.

Editor’s Note: April 11, 2018 marks the 50th anniversary of President Lyndon B. Johnson’s signing of the landmark Fair Housing Act, which now prohibits discrimination in housing on the basis of race, color, national origin, religion, sex, familial status and/or disability. The housing market has changed a great deal since then, as have social and cultural attitudes toward race and discrimination — but while a lot has improved, there is still much progress to be made toward ensuring true equality in housing. Zillow Research will be examining this topic throughout April in honor of Fair Housing Month, and we invite you to read all of our related research and analysis here.

Overall denial rates for conventional mortgages have fallen for almost a decade, a sign of progress that nevertheless conceals a stark divide in the housing market: Black applicants for a conventional mortgage are denied at more than twice the rate as white applicants.

And that divide has widened somewhat over the past two decades.

(Excerpt) Read more at zillow.com ...


TOPICS: News/Current Events
KEYWORDS: badcredit; economy; homeownership; jobs
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-96 next last
To: Right Wing Assault

The CRA lives, and NPR was incensed that it was not being obeyed.


41 posted on 05/05/2018 1:53:23 PM PDT by E. Pluribus Unum (<img src="http://i.imgur.com/WukZwJP.gif" width=800>https://i.imgur.com/zXSEP5Z.gif)
[ Post Reply | Private Reply | To 22 | View Replies]

To: kjam22

As a side note, I am selling my deceased mother’s home which she refinanced (a 1st and 2nd mortgate into one) in 2011 with Chase.

Chase....a wholly and completely faceless cprporate leviathan....failednt9 remove the lien on the title from the old 2nd mortgate.

It has held up the sale for 2 weeks and luckily I found the old account numbers so they could easily locate the records....because my impression based upon their total lack of responsiveness to myself and Chicago Title is tjat if you do not put the information directly in front of their computer monitor and block their game of solitaire you won’t get anything put of them.

I am strongly leaning towards ending ly relationship/closing all of my accounts with chase despite knowing they couldn’t care less abput a small fish like myself.


42 posted on 05/05/2018 1:58:38 PM PDT by TheErnFormerlyKnownAsBig (We need a consent decree for the FBI like Obama was slapping on all those police agencies.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: E. Pluribus Unum

Probably should be three or four times. It would be more than double were it not for political correctness in lendingn


43 posted on 05/05/2018 2:01:12 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming))
[ Post Reply | Private Reply | To 1 | View Replies]

To: BobL
If the people reviewing and processing the applications do not know the skin color of the applicants, then how can they be discriminating against the ones who are black?

Because the names are DeSean Brown and Shaniqua Jones and under Relationship they put "baby-daddy"?

44 posted on 05/05/2018 2:03:07 PM PDT by Hugin (Conservatism without Nationalism is a fraud.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: TheErnFormerlyKnownAsBig

Yep... In this day and age nobody cares about customer service. You can’t “punish” Chase.... but you can choose who you do business with.


45 posted on 05/05/2018 2:03:22 PM PDT by kjam22
[ Post Reply | Private Reply | To 42 | View Replies]

To: E. Pluribus Unum

But, not because they are black. Or white.


46 posted on 05/05/2018 2:06:38 PM PDT by Skooz (Gabba Gabba we accept you we accept you one of us Gabba Gabba we accept you we accept you one of us)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

In related news, people in their 90s with terminal cancer are 100% guaranteed to have their life insurance applications rejected.


47 posted on 05/05/2018 2:13:10 PM PDT by Alberta's Child ("I saw a werewolf drinking a pina colada at Trader Vic's.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: BobL
It already cost this country something like 5 TRILLION DOLLARS to bail out the ‘system’ from the last time we attempted to have ‘equity’.

Ever read or see "The Big Short"? Answers lots of questions and confirmed what I predicted. Many of those default borrowers are not minority, but instead are up to their eyeballs in mortgage debt. I know of an acquaintance of ours has a very similar house that we have once had in MO (3200 SF with a FMV of 365,000) who lives in CA and that same house is over 1 million. They have 3 loans on that house - 1 is an interest only on 500k, 250k is on an ARM and the other 250k in a conventional mortgage. We made the same amount of money as a family! They couldn't afford the mortgage and are living in his parents basement making the payments on the interest only and the conventional. Defaulting on the ARM. I won't go to what kind of cars they drive - but that was also part of the problem, purchased on HELoC funds. Mortgage lenders running commercials touting that they can get you a 125% LTV loan was just plain stupid.

48 posted on 05/05/2018 2:21:15 PM PDT by Cyclone59 (Common sense can solve a lot of issues when applied properly)
[ Post Reply | Private Reply | To 11 | View Replies]

To: E. Pluribus Unum

Hmmnnn... Credit worthiness used to be the standard.


49 posted on 05/05/2018 2:23:32 PM PDT by samadams2000 (Someone important make......The Call!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2banana

.
>> “hy does 12% of the population commit over 50% of the murders and violent crimes?” <<

Because they’re very good at what they do...
.


50 posted on 05/05/2018 2:23:46 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
[ Post Reply | Private Reply | To 2 | View Replies]

To: E. Pluribus Unum
Given similar properties and neighborhoods, why would a loaner want to REJECT a black customer with a good credit rating but would ACCEPT a white customer with a bad rating?



51 posted on 05/05/2018 2:25:16 PM PDT by Right Wing Assault (Kill: google,TWITTER,FACEBOOK,WaPo,Hollywd,CNN,NFL,BLM,CAIR,Antifa,SPLC,ESPN,NPR,NBA)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

During down turns, what ethnic group(s)do you think are placed on the employment chopping block first? You give pat “facts/answers” to a more complex issue than meets the casual eye.


52 posted on 05/05/2018 2:28:14 PM PDT by semaj (U\)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

Did the black/brown applicants have the exact same credit
scores as the white applicants?

The fact that they were turned down for a loan is meaningless if you don’t say why they were turned down.


53 posted on 05/05/2018 2:28:33 PM PDT by Beagle8U (Liberals can kiss my bitter clingers!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

Here we go again....


54 posted on 05/05/2018 2:40:11 PM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sgt_Schultze

Actually it’s 3%

Black males 16 To 35...


55 posted on 05/05/2018 2:42:31 PM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
[ Post Reply | Private Reply | To 27 | View Replies]

To: E. Pluribus Unum
FACT - "Minorities" have a much higher default rate than whites, indicating that whites are being discriminated against.

Absolutely true. That discrimination - or preferential treatment - is a large part of what caused the last financial downturn.

56 posted on 05/05/2018 2:45:29 PM PDT by AAABEST
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

True words


57 posted on 05/05/2018 2:46:31 PM PDT by Nifster (I see puppy dogs in the clouds)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

A Mortgage is a numbers and risk assessment game.

Payment amount allowed equals a percentage of income minus outstanding debts reported to credit associations. Risk is determined through verification of past history of paying bills on time.

Red/white/black/yellow is irrelevant.


58 posted on 05/05/2018 2:50:51 PM PDT by Rebelbase (YETI deathwatch, tick, tick, tick......)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum
If I was in the first line of taking a loan application at the bank I would take every application from blacks whether they came close to hitting requirements or not and allow the underwriting department deal with formally approving or rejecting it. On the other hand I would be willing to tell whites “this loan is five times your income. It will be rejected so either make more money or find a cheaper house.” Presto, the formal rejection rate for blacks is higher because every application will be processed to avoid accusations of racism.
59 posted on 05/05/2018 2:52:25 PM PDT by KarlInOhio (I can't tell if we live in an Erostocracy (rule by sex) or an Eristocracy (rule by strife and chaos))
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

This is refried Bill Clinton idiocy. It was a false positive that created the mortgage debacle.

Application denial does not prove anything. Look at the deliquency rates of rhe resulting minority portfolio vs the white portfolio. When this was done in 1998, it was proved the delinquency rates were identical, which means the credit adjudication was done correctly. This is just business, nothing to do with racism.


60 posted on 05/05/2018 2:55:02 PM PDT by Titus-Maximus (It doesn't matter who votes for whom, it only matters who counts the votes - Joe Stalin)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-96 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson