2004 HMDA Data Show Blacks Had Highest Loan Denial Rates

摘要

A Federal Reserve Board analysis of 2004 Home Mortgage Disclosure Act (HMDA) data shows blacks had the highest home mortgage denial rates and subprime lending rates among race and ethnic groups. The denial rates for blacks for home purchase loans on site-built homes were 24.7 percent for conventional first liens, 21.9 percent for conventional second liens, and 17.2 percent for government-backed first liens. These rates weren't adjusted for borrower-related factors, such as credit ratings, or lender-related issues, such as cost. The unadjusted denial rates for Hispanic whites were 18.4 percent for conventional first liens, 20.0 percent for conventional junior liens, and 15.6 percent for government-backed first liens. For non-Hispanic whites, the comparable rates were 10.9 percent, 13.7 percent, and 10.4 percent.