New report says institutionalized bias spurs racial disparity in Black homeownership

A 2021 Brookings Institutionfound that as a result of bias, the value of homes in Black neighborhoods was 23% less than it should be, and that this represented $156 billion in lost equity.

And in the current tumultuous housing market, in which potential home buyers are faced with inflation, increased mortgage interest rates and high home prices, the NAREB report states that Black people have to compete with large institutional investors that have been aggressively purchasing properties, often with cash, and waiving home inspections and appraisals disproportionately in Black communities, virtually shutting down opportunities for homeownership.

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. NAREB called this “positive news,” but also acknowledged that the change will not take effect immediately.

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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New report says institutionalized bias spurs racial disparity in Black homeownershipBlack 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. 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 Thank Clinton and the sub par mortgage fiasco that lead to stringent requirements 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.
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