Blacks and Hispanics More Than Twice as Likely as Whites and Asians to Be Denied a Mortgage

David McCormack, Daily Mail, February 9, 2015

A shocking new study has found that people from the black and Hispanic communities are denied mortgages at more than twice the rate of whites and Asians.

The study by online real estate database Zillow found that white people who apply for a conventional mortgage are denied just over 10 percent of the time and Asians 13.3 percent.

By contrast, blacks who apply for the same loans are denied nearly 28 percent of the time and Hispanics are denied 22 percent of the time.

‘It’s clear that the housing playing field remains strikingly unequal in this country,’ said Zillow Chief Economist Stan Humphries.

One reason said Humphries is that whites tend to make more money than blacks and Hispanics, which makes qualifying for a loan much easier.

‘Black and Hispanic applicants for conventional home loans make roughly $20,000 less per year than white applicants, resulting in much higher denial rates,’ he said.

According to Zillow’s analysis of 2013 race and homeownership data from the federal government, the overall homeownership rate in the U.S. is 63.5 percent.

Among whites the rate is 71.1 percent, compared to 57.8 percent for Asians, 41.9 percent for blacks and 45.2 percent for Hispanics.

The difference in home ownership between black and white households is the same now as it was in 1900, reports CNN Money.

Prices in neighborhoods with a higher concentration of blacks and Hispanics grew faster during the boom, and fell even harder when the housing bubble burst.

‘Black and Hispanic communities are clustered in areas that saw huge run-ups in home values prior to the recession, and even larger drops during the crash,’ said Humphries.

But there are some reasons for optimism according to Humphries.

‘Home values in black and Hispanic communities are expected to rise faster over the coming year, and the data shows that Federal Housing Administration-backed loans have proven to be a viable and critical source of financing in minority communities,’ he said.

The racial divide in home prices can be partly explained by geography and the discrepancy is most intense in some of the nation’s most volatile markets.

In Los Angeles, home prices in black and Hispanic neighborhoods are still 20 percent below peak levels, while prices in the city’s white enclaves have rebounded sharply and have appreciated beyond previous peaks in the Asian communities.


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  • dd121

    You pretty much have to have a job to qualify.

    • bilderbuster

      Someone needs to inform unemployed Blacks this little detail before they apply for loans and maybe they won’t be turned down as often.

  • Okay, here’s the handy solution to this problem:

    Subprime mortgages and ignore credit and lending standards.

    A novel idea that has never been tried before and therefore has never had severely negative consequences on any economy or financial system.

    • connorhus

      Replay the toxic asset melt down in 3…2…1.. 🙂

      • TruthBeTold

        I was just going to type. ‘And the next housing bubble begins in 3, 2 1’.

        • bilderbuster

          No! It will work this time.
          We promise!

    • A Freespeechzone

      Actually, the geniuses in the Obama Administration want to bring this back….

      • Speedy Steve

        Bring this down!

  • phorning

    “‘Black and Hispanic communities are clustered in areas that saw huge run-ups in home values prior to the recession, and even larger drops during the crash,’ said Humphries.”

    You can use Trulia’s website to prove this isn’t true. Look at a graph for Detroit, it housing prices were flat for several years before the crash. The people reviewing the mortgage applications have no demographic information on the borrowers other than dates of birth. No matter how much they want this to be caused by racism, is isn’t the case.

    • It’s well known that facts are racist, and you’re racist for trying to use facts too. Racist racist racist!!!

      • Oil Can Harry

        Yo dawg, I didn’t know that fax be racist.

        From now on me an’ mah homies refuse to use fax machines. Good lookin’ out, G.

  • Chip Carver

    Blacks and hispanics (and yes Asians – slightly) are also more likely to default on a home loan than whites. Wonder why that was left out.

    • LHathaway

      Well, during the housing crises and the recent recession, people were being encouraged to default. As home prices dropped, people were paying loans on homes that were worth less than what they were paying. Unless your home was half-way paid off or more, or if you were a nun, and felt unable to ‘cheat’ the bank, there became no reason for them to keep paying.

    • ZB01

      Asians, too? That one is surprising.

      • Pat Boyle

        It may be because the racial classifications are confused. I doubt if they mean Japanese or Koreans but they may have included South East Asians and Pacific Islanders.

    • Irish

      I’ve invested in a couple of rental properties over the last few years . All cash of course because banks positively won’t lend money to the average Joe for investment purposes, never mind your credit score (mines north of 800) or income. I get new properties sent to me in a email just about every day, they are are primarily foreclosures, and they are mainly in the hood.. Needless to say I almost never bother to go even look at them..

  • Dave4088

    Does this mean that, in addition to white skin privilege there is Asian skin privilege in lending?

    Part of the problem with afro-mericans and spanics is they apply for mortgages on homes that far exceed their means to pay the monthly mortgage since they want to live next to whitey in the high rent district. And, if they are in debt with credit card bills this will work against them during the application process since it hinders their ability to pay back the mortgage. However, if a bank or lending institution decides to take a risk and approve the mortgage and the black or brown defaults then they are a “predatory lender”.

    • Usually Much Calmer

      Yep. I am a white female. When it comes to acquiring rescources, blacks and hispanics just shoot for the moon. Likelihood of success be damned.

      I am befuddled by the statistics on asians.

      • Most Asians are financially responsible. The stats are skewed a bit by new arrivals from SE Asia and Fujian Province who are often engaged in syndicates and scams.

        • Usually Much Calmer

          Ah. Thanks!

        • bilderbuster

          They love to gamble.

        • John Smith

          I’d bet that many Asians pay cash and the ones who can’t are indeed worse risks.

  • TruthBeTold

    Don’t give them a loan: racism and redlining.
    Give them a loan: predatory lending.

    • Reynardine

      They want white people loans while still keeping up black attitudes.

      And people wonder why payday loans are so common in black neighborhoods? Blacks can’t control themselves enough to get into higher and better brackets for loans. Loan companies judge them by the content of their credit score, and it is found wanting.

      • Speedy Steve

        They always seem to have enough for VSOP and other high-end brandies, Cristal champagne — which retails for $200 a bottle, and Schlitz Malt liquor which fetches $2.09 a 40oz bottle.

        • Reynardine

          Not to mention $200 Nikes…

  • Alucard_the_last

    Oh it is got to be ‘rrraaaaccccccisssm’ not the fact that they don’t qualify for the loan.

  • Cincinnatus

    This just means that structural white racism still exists and we need to fight against it! More affirmative action now!

  • dmxinc

    As Steve Forbes asked out in the 1990’s – “What are the default rates?”

    It turned out the default rates were the same for White, hispanic and Black borrowers.

    This statistic proves that banks were practicing good leading standards and that Whites were not getting “easy money.”

    The usual suspects do not care about facts, as we all know.

    • connorhus

      However look at the number one growth group in home loans. It was single White Females and it just happened to correspond to a change in the fair housing and community reinvestment legislation that demanded child support and government aid be counted as income. Almost 18 years later by clock work the defaults went vertical. Coincidence? I doubt it.

  • connorhus

    Did they ever stop to consider that maybe the Whites are intelligent enough to not even try unless they are sure they can get said loan? I mean why waste your time? Blacks and Hispanics on the other hand think the government has already told the banks they have to give out these loans so they don’t see it as a waste of time.

    • Alexandra1973

      I’d be turned down flat so no way I’d even waste my time or theirs.

      It’s okay. My apartment is nice, and I don’t have to shovel snow or mow the lawn. 🙂

  • superlloyd

    Credit history and borrowing what you can afford beez rayciss. This is more disparate impact nonsense that doesn’t require libtard idiots to look at cause and effect.

    • bilderbuster

      That doesn’t stop the media from publishing this nonsense year after year.

  • DiversityIsDeath

    So what? What are their INCOMES? COLLATERAL? CREDIT RATINGS? Let’s see the NUMBERS.

    • TomIron361

      Exactly what is the meaning of this study? Without all the numbers, it proves nothing and is a waist of time and effort.

    • There’s also down-payment. With 20% down on a conventional, fixed-rate mortgage, one can get better terms, as the bank will understand you have more skin in the game. It also eliminates the need to pay for mortgage insurance, which is just money down the toilet.

      • TheMaskedUnit

        What I want to know is whatever was that PMI for, anyway? Surely it wasn’t insurance to cover bad loans.

        • It covers the bank for their own losses in case you default. It’s like “forced place” car insurance. Let’s suppose I finance a car (though paying interest on a depreciating asset is dumb). One of the conditions will be that I carry collision insurance until the loan is paid off. This protects the car finance company in case I wreck a car that is still partly theirs. If I am my old TSA agent house-sitter and I try to be sneaky, cancelling my car insurance because I want to spend the money on drugs, the finance company will slap an “F.P.” charge on my monthly car payment. This doesn’t cover me at all if I injure someone or ruin their vehicle. It only pays the finance company if I screw up what is still to some extent their car.

          • TheMaskedUnit

            So what was TARP for? The banks were supposedly “covered”.

  • RacialRay

    Years ago, as a young, first-time homeowner, I was ridiculed by a number of black coworkers for paying my bills on time. Yes, paying what you owe in a timely fashion for some mortgaged asset or delivered service, and caring about your creditworthiness, was deemed irremediably “white”. Whether it was the house, a car, or the water bill, they could not fathom the mindset of anyone who would pay up before he was threatened with collection.

    Makes sense when you consider that all they’ve ever known is take, take, take.

    • When I had a mortgage, I set the payment up to be auto-debited from my checking account each month. Ditto the HOA dues. Since these are each the same amounts from one month to the next, all I had to do was write in the expense in my checkbook. I also saved 24 postage stamps a year that way. Simple, right? For some critters, the simple things are the most complicated.

      • John Smith

        The Kosher Bunch rely on the lack of intelligence in their victims to make their greatest profits.

        • Ike Eichenberg

          That is so true, and also a good explanation as to why so many Jews want to import more low IQ types.
          It’s easier to make $100 each from many poor dimwits than it is to make $10 each from a few middle income intelligent types.

    • Speedy Steve

      I worked with knee grows — sort of. They seldom showed up for their shifts on time, and once left me on the job for 24 hours. When the supervisor reminded me to clock out, I mentioned that I had indeed been on the job all that time. Then the Africans threatened to kill me for being a snitch.

    • Charles Martel

      Your story reminds of the threat by the City of Detroit to turn off the water at households who had not paid their water bills for months – or in some cases, years. A sister in the ‘hood was asked by a reporter if she thought that was too punitive. She didn’t comment except to note that “somebody got da key”, implying that a negro who works for the city would happily turn taps right back on for a couple of bucks!

  • Luca

    Once again, no matter what blacks get or don’t get, they are the victims of racism. Whatever Whites do or don’t do, they are racists.

    That’s quite an airtight formula they’ve got going for them.

  • Vito Powers

    Is this déjà vu all over again???

  • LHathaway

    ‘Shocking’? It’s shocking? It’s hard to build an entire culture upon whom it’s very foundation seems to be built the idea that all people of color (strangely drawn to this oppressive culture) are oppressed, devalued and discriminated against in favor of privileged whites, and then be shocked . . .

  • It was nice to see one of these articles factor income.

  • shawnmer

    Ok, did the words CREDIT SCORE appear anywhere in this article? Or are we still wringing our hands over the unremarkable fact that black and Hispanic creditworthiness generally s*cks to the point that controlling for incomes alone is basically meaningless, as Dr Thomas Sowell pointed out 20 years ago??

    This isn’t funny anymore.

  • TheMaskedUnit

    Maybe we need some kind of encouragement from the state for privately owned businesses to make minority loans … We could call it a Community Reinvestment Act.

  • Soon we won’t be permitted to consider any hint of a credit rating when doling out loans to favored groups. We’ll just enjoy the privilege of bailing them out when they default. Hey, we’re almost there already.

    • Bill Moore


      That’s what caused the 2008 financial crisis.

      Banks weren’t allowed to ask Africans about their economic status. Do you have a job? Do you have a bank account? Did you pay your rent on time?

      Washington DC ordered the banks to just hand out unsecured loans (mortgages) to Africans.

      Bill Moore

      • Charles Martel

        At the time they were known as Liar Loans!

  • WR_the_realist

    The difference in home ownership between black and white households is the same now as it was in 1900, reports CNN Money.

    The difference in average IQ between black and white individuals is the same now as it was in 1900, reports all the psychometric studies.

  • E. Newton

    The goal of what we conveniently refer to as the cultural marxists, is to invert reality. This keeps you off balance, constantly trying to understand how what is right is now wrong and what is wrong, or often horrible, is now right. It’s a sleight of hand to confuse you as you go about trying to produce goods or services, pay your creditors and care for your family. The whole struggle has actually come down to a struggle with satan. And I say that as someone not active in any church.

  • MikeofAges

    At a minimum, the mortgage payment has to equate to the reasonably anticipated future income of the buyer. At least it should work that way. When the mortgage industry has deviated from that template, there have been problems. Astoundingly, I have had mortgage professionals tell me that the past problems were caused by buyer who borrowed more than they could afford. That is nonsense in my estimation. Mortgage brokers, bankers and loan agents are the professionals. They are supposed to tell people what they can afford. If they do not do that, then they have failed in their due diligence. Put the blame on the industry for letting people buy property they could not afford, often based on the assumption that prices would rise forever. Only after that, look for other culprits. You can blame the government for putting pressure on the mortgage industry to make loans to high risk minority buyers. Minority buyer had a role. But so did stupid white people who thought they could buy a $500,000 house putting out $5000 in cash, and then get a tenant pay for it for them. Saw it up close and personal in California in the 2000s.

  • Reverend Bacon

    What the article misses, and what all liberals and some conservatives miss, is this key test of racism: default rates. If there were some big racist conspiracy to deny loans to blacks, or to enforce higher credit standards for blacks, then the default rates for blacks would be far lower. They’re not. They’re higher. Ask any banker.

    A higher default rate means that blacks are actually getting lower standards, not higher ones. It’s whites who should complain.

  • JohnFRoss

    “One reason, said Humphries, is that whites tend to make more money than
    blacks and Hispanics, which makes qualifying for a loan much easier.”

    In a related story, water is wet…

  • Speedy Steve

    A shocking new study … Well, not exactly shocking to this Virginian who has seen these varmints in their natural habitat. Maybe shocking to a liberal limey who has fantasized over National Geographic nudity.

  • mikefromwichita

    Just confiscate every tenth White owned home, put the family on the road with the clothes on their backs and give the house plus contents to a ‘deserving’ black Title 8 grade household. Problem solved.

  • Johnny

    One of the factors in loan approvals that is consistently overlooked (deliberately?) is the credit status of the applicant.
    I am in the Automobile business and process loans on a daily basis. I am trying to not generalize, but as a whole, black people have WAY worse credit than every other demographic. They are turned down because of their lack of financial responsibility, not because of their race.

    • LiberalismFailed

      Exactly. And when they get the loans, guess which demographic has the highest default rate, whether its secured or unsecured?

    • John Smith

      Do they even ask race when processing loan applications? That should be proof enough that its all about the personal statistics.

      • Johnny

        It is illegal to ask race on an application.
        However, some of us do use our powers of observation.

        • John Smith

          Yeah, pretty easy to figure out what “LaQuisha Jackson” and “Demarius Washington” are.

          • Ike Eichenberg

            True, but look in the belly of any lending institution and you will find the department is full of affirmative discrimination hires.

            The people processing and turning down LaQuisha’s loan because she has a 490 FICO are often negro.

  • Ringo Lennon

    Wish Asians would stay in Asia. Caucasians aren’t in their countries.

  • benvad

    Whites are denied twice as much as East Asians in the United States. Boo hoo, right?

    Save your damn money and stop wasting it on cable tv and eating that garbage take out pizza.

  • John Smith

    Much more than twice as likely to be poor credit risks, so they should be thankful the rate of denial is as low as it is.

  • Irish

    I may have traditionalist views on race & politics, but when it comes to making money the only color I see is green..And of course the same is true of bankers. If they thought there was money to be made lending to poor people with a low FICO score (In a normal market) they’d do so..