Racial Discrimination Still Prevalent in Mortgage Loans

New analysis by Reveal from the Center for Investigative Reporting shows that African Americans and Latinos continue to be denied conventional mortgage loans at rates higher than similar white applicants. The analysis, based on records publicly available under the Home Mortgage Disclosure Act, shows that black applicants were denied mortgage loans at significantly higher rates than counterpart white applicants in 48 cities, Latino applicants in 25 cities, Asian applicants in nine cities, and Native American applicants in three cities. The analysis controlled for nine economic and social factors, including income, the loan amount, the ratio of the size of the loan to the applicant’s income and the type of lender; however, credit score was not included because that information is not publicly available. According to the analysis, there is a persistent pattern of troubling denials for people of color across the country, including major metropolitan areas such as Atlanta, Detroit, Philadelphia, St. Louis and San Antonio.

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