Women In Housing-2015

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22 | Th e M Rep o RT Feature 22 | Th e M Rep o RT refinance mortgages originated. For example, mortgage purchase applications from middle-income women were 13.6 percent less likely to be originated than purchase applications from middle-income men, controlling for the loan-to-income ratio. This pattern held true for women with co-applicants. Middle-income women with co-applicants were 24.1 percent less likely to have purchase mortgages originated than middle-income men with co-applicants, controlling for loan- to-income ratio. The pattern was similar for refinance mortgages, as shown in Charts 2 and 3. The disparities between the origination rates of men and women persist across both conventional and government- backed mortgages. Women and women with co- applicants faced similar disparities relative to men for both conven- tional and government-backed (FHA or VA) loans. For example, women with co-applicants were 22.8 percent less likely to receive conventional purchase loans than men with co-applicants, while the disparity was 26.7 percent for government-backed purchase loans. See chart 4 for more com- plete information. Bank of America, PNC, U.S. Bank, and Wells Fargo had above-average gender disparities across all categories for purchase loans, while Fifth Third Bank, Provident Funding Group, and U.S. Bank had above-average gender disparities across all categories for refinance loans. U.S. Bank was the only lender to have above-average disparities for single and joint applicants for both purchase and refinance mortgages. While some of the disparities may be attributable to different client bases or service areas, they may also be due, in part, to business practices that are disproportionately excluding women from the mortgage market. There were significant differences in the reasons for loan denial between female applicants and male applicants. Female applicants for purchase and refinance mortgages were more likely to be denied because of credit histories or debt-to- income ratio than male applicants, while male applicants were more likely to be denied because of collateral or incomplete credit applications. While Woodstock Institute's study focuses on the Chicago re- gion, the findings are consistent with trends across the country. Looking at data from the five most populous states (California, Texas, Florida, New York, and Illinois), female applicants in each of the five were less likely to have mortgages originated than men. Combining the data for all five states, 84.3 percent of purchase applications from men resulted in the loan being originated, compared to 81.4 percent of purchase applications Chart 1 Difference in Probability of Mortgage Origination for Female Applicants, 2011-13, without and with Control for Loan-to-Income Ratio Chart 2 Difference in Probability of Purchase Mortgage Origination for Female Applicants, 2011-13, by Income Range, Controlling for Loan- to-Income Ratio Table 1 Percent Disparity in Loan Origination Rates for Female Applicants, 2011-13, by Loan Purpose and Financial Institution Purchase Refinance Institution All Joint Only All Joint Only 1st Advantage Mortgage 1.0 -1.2 0.5 0.9 Bank of America 5.5 8.0 -0.4 0.2 Bank of Montreal 0.1 5.4 4.3 5.0 Citigroup 1.3 3.0 0.3 0.9 Fifth Third 2.0 2.3 7.2 8.4 Guaranteed Rate 0.5 1.1 0.7 1.1 JPMorgan Chase 2.8 3.1 2.2 3.4 PNC Financial 3.2 6.5 1.5 6.1 Provident Funding NA NA 4.6 5.7 US Bank 3.3 4.6 9.5 10.4 Wells Fargo 3.5 5.4 3.8 2.9 Wintrust 0.1 0.6 3.0 2.9 Overall Average 2.3 3.6 4.1 5.1

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