MReport August 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

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M R EP O RT | 9 MDWELL Source: Black Homebuyers More Likely to Be Denied Mortgages Than Other Homebuyers Access Denied A new report tracks which cities have the highest and lowest mortgage denial rates for African American borrowers. 10 Cities With Highest Mortgage Denial Rates A study by Lending Tree found that African American borrowers face more obstacles in their pursuit of homeownership, as they are more likely to be denied a mortgage. The mortgage purchase denial rate for African American homebuyers is higher than the denial rate for the overall population of homebuyers in each of the nation's 50 largest metros. On average, African American homebuyers are denied mortgages 12.64% of the time—6.49 percentage points higher than the overall denial rate of 6.15%. Milwaukee, St. Louis, and Cleveland are the metros with the largest spread between the denial rate for Black home buyers and the overall denial rate for purchase loans. Sacramento, Seattle, and San Diego are the metros with the smallest spread. The average spread in the metros with the widest gap in denial rates is 10.96%, compared to the smallest gap at 3.45%. Milwaukee, Wisconsin 17.73% 5.57% Miami, Florida 17.33% 11.08% Detroit, Michigan 16.58% 6.91% St. Louis, Missouri 16.19% 5.21% New York, New York 15.87% 8.53% Atlanta, Georgia 15.36% 7.95% Cleveland, Ohio 15.22% 5.47% Orlando, Florida 15.18% 9% Jacksonville, Florida 15.12% 8.4% Tampa, Florida 15.12% 8.2% Metro State African American Mortgage Denial Rate Overall Mortgage Denial Rate

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