Lost in the debate about whether to make fintechs comply with the Community Reinvestment Act is that many of them already partner with banks to make loans in low-income neighborhoods.
How Can We Catch Up? Mortgage Denials Stack the Deck Against Black and Hispanic Buyers How Can We Catch Up? Mortgage Denials Stack the Deck Against Black and Hispanic Buyers
The American dream of homeownership is not an equal opportunity ambition. Blacks and Hispanics are more likely to be denied mortgages or get pricier loans.
Clare Trapasso, provided by
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The American dream of homeownership is not an equal opportunity ambition.
Black and Hispanic home buyers are more frequently denied mortgages than white buyers even when their financial pictures are similar, according to a realtor.com® analysis of 2019 mortgage data. When they are able to secure mortgages, Black and Hispanic borrowers are more likely to pay higher fees and interest rates on their loans than white and Asian borrowers.
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The New York State Department of Financial Services (DFS) issued a report on February 4, 2021, detailing its investigation of the mortgage lending market in the Buffalo metropolitan area. The report includes findings about a distinct lack of lending by mortgage lenders, particularly nonbank lenders, in neighborhoods with majority-minority populations and to minority homebuyers in general.
The Report
DFS used Home Mortgage Disclosure Act (HMDA) data to map and analyze mortgage lending patterns of Buffalo area mortgage lenders which include very large national and regional banks, as well as small, local, and community banks, and many nonbank lenders from 2016 through 2019. The data revealed that:
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Shortly after the inauguration of President Joe Biden on January 20, former Consumer Financial Protection Bureau (CFPB or Bureau) Director Kathleen Kraninger submitted her resignation. Soon after that, the president announced that he had appointed David Uejio, a veteran CFPB official who most recently served as the Bureau’s chief strategy officer, to serve as acting director until the Senate confirms Rohit Chopra, his nominee for director.
In the short time since the inauguration, the Bureau has released guidance to assist military families manage their finances during and after the pandemic; to individuals choosing or being forced, due to the pandemic, to retire; and on current loan and housing protection measures. In addition, Acting Director Uejio has been meeting with the staff of the Bureau’s divisions, and has both conveyed his broad vision for the Bureau in the coming months as well as directed key Bureau divis