HMDA Data Analysis Points to Racial Disparities in Home Loans

Sep 29, 2017

Black and Hispanic borrowers continued to more difficulty accessing home loans in 2016 than their white counterparts, according an analysis of Home Mortgage Disclosure Act (HMDA) data by the Center for Responsible Lending (CRL).

Using newly released 2016 HMDA data by the Federal Reserve, CRL found black and Hispanic borrowers received a combined 187,958 conventional loans, or nine percent of 2,123,000 conventional loans approved last year. In comparison, white consumers received 70 percent of these loans or 1,490,032.

However, black and Hispanic borrowers received more government-backed mortgages through the VA and FHA programs. In 2016, 324,566 non-conventional mortgage loans were approved for nonwhites, compared to 866,000 loans approved for whites. White consumers received 809,400 FHA loans in 2016, or 60 percent of the total number.

“It is troubling to see the continued trend of mortgage lenders abdicating their responsibility to serve the full universe of credit-worthy borrowers,” said Nikitra Bailey, CRL Executive Vice President. “During the financial crisis, taxpayers of all colors together paid for the bailout of banks. Now and years later to see that African-Americans and Latinos to remain overly dependent upon FHA to access mortgages is a sign of unfair treatment. on FHA to access mortgages is a sign of unfair treatment.”

About the author

Phil Hall

Link copied

Published

Sep 29, 2017

Industry News

UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Just weeks after allegations against United Wholesale Mortgage (UWM) were published in an exposé-style report and a class action lawsuit, Hunterbrook Media is once again putting the Michigan lender under the spotlight. On Thursday, the hedge-funded media company published...

Analysis and Data

Homebuying Excitement Is Up Among Veterans

Survey results indicate optimism about housing market among U.S. veterans and service members

Our nation’s heroes are increasingly optimistic about buying homes, new research indicates. The amount of veterans and service members who plan to purchase a home in the next six months was up by 15 percentage points year-over-year, according to the Veterans Homebuying Re...