Mortgage Denial Rate for Black Borrowers Is Twice That of Overall Population, Report Finds

 • Mortgage denial rates among black borrowers are twice as high as the overall borrower population in the top 50 US metropolitan areas, according to a new report from LendingTree.

• Some cities did well in narrowing the gap between black borrowing denial rates and the general population.

• “Black homebuyers should never lose faith that they can't be homeowners,” says one expert.

Owning a home is he one of the most important ways to build wealth. But it can be a difficult milestone for aspiring black homeowners, according to a new report from LendingTree. A study by an online lending marketplace found that black homebuyers have twice the mortgage rejection rate of all borrowers in the nation's 50 metropolitan areas.

When it comes to mortgage applications, an average of 18% of black borrowers are denied, compared to his 9% rejection rate for the general population.

LendingTree's analysis is based on data from the Mortgage Disclosure Act of 2020.

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“There are problems,” said Jacob Channel, senior economist at LendingTree. "We have data to back it up.

"But there is a solution. Black homebuyers shouldn't lose faith that they can't be homeowners," he said.

The Best and Worst Cities for Mortgage Denial

The city with the widest difference in mortgage refusal rates between black borrowers and the general population is St. Louis, with 20.73% blacks compared to 7.33% of the general population, according to LendingTree research, an overall difference of 13.40 percentage points. did.

Boston and Jacksonville, Fla., ranked second due to a 13.34 percent difference in black and general population mortgage denial rates, respectively. In Boston, the homebuy rate for blacks was 20.85% against his 7.51%. In Jacksonville, he was 25.01% against 11.67%. Black homebuyers performed best in three West Coast metropolitan areas: Seattle, San Francisco, and Sacramento, California.

San Francisco just beat her to 1st place by a margin of 2.35%. Blacks are 11.79% for him and 9.44% for the general population.

Sacramento was next with a spread of 4.64 percentage points, 13.12% vs. 8.48% overall. And Seattle was third with a spread of 4.83 percentage points: 12.74% vs. 7.91%。

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