Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Racial minorities remain much more likely to be denied mortgages in Twin Cities, study shows
https://www.startribune.com/racial-minorities-remain-much-more-likely-to-be-denied-mortgage-in-twin-cities-study-shows/600175027/Racial minorities in the Twin Cities are far more likely than whites to be denied a mortgage, regardless of their credit scores, the location of the home and other key factors, new research from the Federal Reserve Bank of Minneapolis shows.
The denial rate for Asian applicants in the region was 3.2%, for Latino applicants 3.3% and for Black applicants 4.3%. The denial rate for white applicants was 1.7% in the three-year period studied by the Fed.
"We have one of the largest homeownership gaps in the country, and it's something that hasn't changed much over time," said Alene Tchourumoff, the Fed's senior vice president of community development and engagement, said in an interview.
(snip)
The Fed used more detailed information, including the applicant's credit score, that was not available or incorporated into previous analyses of mortgage denials, to get a better understanding of why people of color are less likely or less able to buy a home. Homeownership, for many people, is critical for building long-term wealth.
The denial rate for Asian applicants in the region was 3.2%, for Latino applicants 3.3% and for Black applicants 4.3%. The denial rate for white applicants was 1.7% in the three-year period studied by the Fed.
"We have one of the largest homeownership gaps in the country, and it's something that hasn't changed much over time," said Alene Tchourumoff, the Fed's senior vice president of community development and engagement, said in an interview.
(snip)
The Fed used more detailed information, including the applicant's credit score, that was not available or incorporated into previous analyses of mortgage denials, to get a better understanding of why people of color are less likely or less able to buy a home. Homeownership, for many people, is critical for building long-term wealth.