|January 27, 2022|
Black home ownership: Closing the credit access gap
An analysis has found that Black applicants are being denied a home mortgage at an 84% higher rate than white applicants, a stark increase of 10 percentage points since 2019.
Zillow based its conclusion using data from the Home Mortgage Disclosure Act.
In California, the mortgage denial rate for Black applicants is 14.9% compared to 10.1% for White applicants. The most common reasons centered on poor credit history and lack of credit.
Fannie Mae and Freddie Mac would allow rental payments to count towards credit history as a step in the right direction.
Zillow notes the homeownership rate of Black households has dipped in recent years from a peak of 49.7% in 2004 to 44% currently. Black-owned home values continue to lag behind other races, and are worth 16.7% less than homes overall.
Story Date: January 18, 2022