TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/145103
The pulse Race Matters A merica is not quite the melting pot it claims to be in terms of access to housing. HUD recently released a report admitting that while blatant discrimination has diminished, racial and ethnic minorities are still facing more subtle housing discrimination. Minorities are finding that real estate agents and rental housing providers recommend and show fewer available homes and Access to homeownership still plagued with tinges of discrimination. apartments to minority families, thereby increasing their costs and restricting their housing options. "Fewer minorities today may be getting the door slammed in their faces, but we continue to see evidence of housing discrimination that can limit a family's housing, economic, and educational opportunities," said HUD Secretary Shaun Donovan. "It's clear we still have work to do to end housing discrimination once and for all." Tough Times African-American Asian Latino Whites Many minorities are still facing struggles meeting the minimum requirements to access homeownership. While the past decade has shown increased reliance for the government to back loans issued to all borrowers, minorities have seen an increase in the amount that the GSEs cover. Black renters who contact agents about recently advertised housing units learn about 11 percent fewer available units and are shown roughly 4 percent fewer units. Black homebuyers who contact agents about recently advertised homes for sale learn about 17 percent fewer available homes and are shown about 18 percent fewer units. Asian renters who contact agents about recently advertised housing units learn about 10 percent fewer available units and are shown nearly 7 percent fewer units. Asian homebuyers who contact agents about recently advertised homes for sale learn about 15 percent fewer available homes and are shown nearly 19 percent fewer units. Latino renters who contact agents about recently advertised housing units learn about 12 percent fewer available units and are shown roughly 7 percent fewer units. The difference in treatment for Latino homebuyers is not statistically significant According to recent reports, 11 percent of Among African-American borrowers and 14 percent of Latino borrowers have lost their home to foreclosure compared to 8 percent of Asian borrowers and 6 percent of non-Hispanic whites since the crisis. {10.1%} {79%} {1%} {29%} {5%} {73.3%} {9%} {49%} Share of Purchase Originations Comprised by GovernmentBacked Loans 2005 2010 2005 2010 2005 2010 2005 2010 {-52.2%} {-18.5%} {-45%} {-47.7%} {-82.5%} {-35.9%} {-74.6%} {-66.9%} {-14.9%} {57.2%} {-2.9%} {25.7%} overall overall overall overall conventional conventional conventional conventional government-backed Change in Purchase Loans by Race/Ethnicity from 2000–2010 government-backed government-backed government-backed with a median income of $40,165 with a median income of $54,168 with a median income of $33,578 Years to Save Down Payment, by Race/Ethnicity {11} {15} {20} 20% down payment 10% down payment 5% down payment 12 | The M Report { no data available at press time. } {45%} {25%} {31%} {33} {19} {11} 20% down payment 20% down payment 10% down payment 10% down payment 5% down payment 5% down payment Additional data was compiled from the Center of Responsible Lending.