New report says institutionalized bias spurs racial disparity in Black homeownership

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Black mortgage applicants are more than twice as likely to be denied a loan for a mortgage than their white counterparts, according to a new report by the National Association of Real Estate Brokers.

that the lack of people of color in the industry is at the root of home appraisal bias.

“The devaluation of homeownership and ownership by Black folks have been historically a challenge for us,” NAREB president Lydia PopeIf you don’t know a neighborhood, she said, you don’t understand there is more to appraisals than meets the eye. "So a major issue is that we definitely have to hire more Black appraisers,” she said.

The report lists several recommendations to close the racial disparity gap in Black homeownership, including eliminating risk-based or loan level pricing, eliminating penalty fees to access down payment assistance and ending discriminatory and abusive appraisal practices.In October, the Federal Housing Finance Agency announced the validation and approval of two newer, purportedly more sophisticated and accurate credit scoring models, specifically, FICO 10T and VantageScore 4.0.

The Neighborhood Assistance Corporation of America , 93% of whose members are minority homeowners, also touted a multiday event around the Martin Luther King Jr. holiday next year, which allows potential homebuyers to meet with homebuying counselors and underwriters to help close the homeownership gap.

 

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I got my home loan.I’ve bought 3 homes and never been denied a home loan. If you have the credit you will get the loan.

Thank Clinton and the sub par mortgage fiasco that lead to stringent requirements

If they have the same credit score, the same debt/ income ratio and the mortgage will be 1/3 their income they'll get the loan. In 2008 they were foreclosed disproportional because the government forced banks to give loans unqualified borrowers,tx 2 Barney Frank and Harry Reid

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