Study Shows It's A White Man's World When It Comes To Mortgage Loans

James Brown once sung about the world being a “Man’s World”, but if you’re looking to get a mortgage loan, you need to be a white man to actually get approved.  A  recent study by the Woodstock Institute shows that white men are at an advantage when it comes to securing mortgage loans.   The study shows that African-American women, and even those households with female headed joint applications are less likely to receive mortgage loans:

The fact sheet, “Unequal Opportunity: Disparate Mortgage Origination Patterns for Women in the Chicago Area,” previews a longer research report to be released later this year. An examination of 2010 data on first lien single-family home purchase and refinance mortgage originations and denials in the Chicago six county region by race and gender finds that:

• Female-headed joint applications are much less likely to be originated than are male-headed joint applications. Controlling for loan-to-income ratio, which is one measure of the affordability of the loan, female-headed joint home purchase mortgage applications in the Chicago six county region are 24 percent less likely to have loans originated than are male-headed joint applications.

o Among subregions in the Chicago six county area, the largest disparities between female- and male-headed joint purchase application originations are in Northwest Cook (female-headed joint applications are 40 percent less likely to be originated), Kane County (40 percent less likely), and Will County (34 percent less likely).
o Female-headed joint applications are not significantly less likely to be originated than male-headed ones in South and Southwest Cook, DuPage County, Lake County, and McHenry County.

• The disparity between female- and male-headed joint home purchase applications holds true across all racial categories, controlling for loan-to-income ratio, and is most pronounced for African American women. African American female-headed joint home purchase applications are 34 percent less likely to have loans originated than African American male-headed joint purchase applications. White female-headed joint purchase applications are 22 percent less likely to have loans originated than are white male-headed joint purchase applications, while the disparities between likelihood of origination for female- and male-headed joint purchase applications are 19 percent for Latino applicants and 12 percent for Asian applicants.

• The racial and gender disparities among joint applications are even more extreme for refinance loans. Controlling for loan-to-income ratio, female-headed joint refinance applications are 39 percent less likely to have loans originated than are male-headed joint refinance applications.

 

Of course we know this type of discrimination in the mortgage industry isn’t new. Last year GFI Mortgage Bankers agreed to pay more than $3.5 million to settle allegations by federal prosecutors that it charged higher interest rates and fees on mortgages to nonwhite borrowers than to whites with similar financial backgrounds. It’s just sad to see that the more things supposedly change, the more they stay the same.

 

 

Tags: ,
Like Us On Facebook Follow Us On Twitter
  • Val

    So many Black people just want to blame the Black people on the South Side of Chicago for everything that is going on there. Well, this is one of the root causes of the problems experienced in violent Chicago neighborhoods. No or low home ownership means the residents don’t have any real investment in their communities. And, this is just the tip of the iceberg.

    • Rochelle

      Yeah lets just give people homes that they don’t deserve. If the people of chi town want a home, get a better job, get off the street corners, stop having babies at 15 and utitlize the often FREE education afforded to the “less well off.” Don’t impede and destroy neighborhoods of those that took the right steps to better their lives. And for God’s sake dont ignore every opportunity to better yourself and then complain and moan about affordable housing when you could have taken advantage of given opportunities, so you wouldn’t have to beg for a more affordable homes.

  • LIL RAY

    Are you really trying to say it’s because black people don’t own their own homes is why gangs kill each other and innocent babies???.

    • Val

      @Lol Ray

      Reading comprehension is obviously a huge problem. Maybe you should work on your reading skills and then read what I wrote again.

  • Starla

    Maybe Black people should look into buying up raw land and let it sit and accumulate some value, and build up an asset portfolio. Land is cheap in many places and if you are savvy and have an idea where investors may look at next, you could be well reawarded. When you have a good asset portfolio it would be much easier to get a mortgage. Even if you are never able to own a house, you will still have the land to pass on to your children.

    We should also put our money in Black owned banks, yes, they are few and far between but why build up people who will not be there to build you up in return. If you are a Muslim, then deal soley with the Muslim banking people who do not beleive in interest and most Muslims pay off their mortages 10-15 years earlier than the average person because there is no interest involved.

  • Chic Noir

    Not just loans but every damn thing.