October 2, 2022
Recently, CNBC highlighted the mortgage denial rate for Black borrowers in the United States. The article cites a new report from LendingTree that gives insight into the difficulties aspiring Black homeowners are facing.
In the United States, one of the most effective ways to build wealth is through homeownership. However, Black borrowers are tasked with navigating an uneven playing field to reach this important milestone. The report from LendingTree, an online lending market company, revealed that Black borrowers face denial at twice the rate of the overall population when it comes to applying for mortgages. This can lead to Black borrowers questioning whether becoming a homeowner is achievable.
Jacob Channel, a senior economist at LendingTree, commented, “The problem does exist. We have data that backs that up. But there are solutions, and Black homebuyers shouldn’t lose faith that they’ll never be able to become homeowners”.
Over the years, gradual progress has occurred in evening out the playing field for aspiring Black homebuyers compared to the overall population. Yet, a recent national survey found that 45% of Black respondents currently live in a home they owned compared to 55% who lived in a rented home.
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2022-10-2 FSIC Housing TF Blog Denial Rate Double