, Black, Hispanic, and Asian aspiring homeowners in Philadelphia continued to be denied mortgages more often than white borrowers regardless of income and other financial qualifications, according to an analysis of the latest federal mortgage data.
The latest findings “provide yet another reminder of persistent patterns of inequitable access to mortgage credit for Black and brown borrowers and communities across the city,” researchers wrote inThere was a little progress toward racial equity in 2021, but going forward, inflation, higher interest rates and home prices, and competition from investors “will likely exacerbate many of the disparities,” the report said.
Black borrowers were less likely to be denied for a loan in Philadelphia in 2021 than nationwide. The denial rate nationally was almost 16%, compared to 12.5% in the city. Denial rates for white applicants are “substantially” lower than denial rates for Black, Asian, and Hispanic applicants no matter how much money they make, according to the analysis.with incomes over $57,000 in 2021 were denied mortgages more frequently than white applicants with incomes under $57,000. And a much higher percentage of Black borrowers considered well-qualified by industry standards were denied loans than white borrowers who were less qualified.