Report shows minorities denied loans

HOME-LOAN

The Northeast Ohio Sustainable Communities Consortium has released its Fair Housing Report.

The initiative incorporates 12 counties in the northeast  Ohio region. The study looked at private lending practices, public sector housing complaints and the community reinvestment act.

Among the data analyzed was that provided by the Home Mortgage Disclosure Act for home purchase loan applications from 2004 through 2011.

Of the 328,557 loan applications originated in the region, 65,149 were denied. American Indian, black, and Hispanic residents experienced a higher rate of loan denial than white or Asian applicants. Black and Hispanic applicants were also issued higher interest rate loans, and black borrowers experienced a rate nearly twice that of white applicants, according to the report.

“This is typically blacks and Hispanics have a high rate of denial,” said Robert Gaudin, Research and Planning Western Economic Services. “They are located more often in areas with higher incidents of poverty.”

The study’s goal is to identify the problems then look for answers that would best fit the region.

blog comments powered by Disqus