Stay Woke: Black People With Bad Credit Are 50% More Likely To Be Rejected By Mortgage Lenders Than White People

Posted on - By

Categories: Did You Know, For Discussion, For Your Information, News, Race Matters

mortgage

Black With Bad Credit 50% More Likely To Face Rejection Than Whites

via Breaking Brown

In a credit market driven by pure numbers, the outcomes should reflect the credit scores. However, as Vox discovered, new data seems to show that while blacks are punished by Freddie Mac and Fannie Mae for having poor credit, whites are far more likely to be given the benefit of the doubt.

When looking at rates of home mortgage denials, it is clear that the most likely people to be given a mortgage among all demographics are those with strong credit. But among “weak applicants only”, it appears that blacks are 50 percent more likely to be rejected than their white counterparts.

This data was published by the Metro Trends blog and seems to point to a disturbing discriminatory trend. Here’s how they run down the data:

By race and ethnicity, in 2012, at least 40 percent of all African American applicants, 27 percent of Hispanic, 14 percent of white and 15 percent of Asian applicants were denied GSE loans. Yet of low credit profile applicants, at least 75 percent of African American applicants were denied GSE loans, 67 percent of Hispanic, 50 percent of white and 55 percent of Asian. 

Shutterstock

More from MommyNoire

More from StyleBlazer & MadameNoire

blog comments powered by Disqus
No thanks
Follow

Get every new post delivered to your Inbox.

Join 10,307 other followers