Black Mortgage Applicants Denied Substantially More in Houston

by Peter Thomas Ricci

Mortgage markets have improved, but the inequities are still pronounced


Black mortgage applicants in the Houston area are denied at a much higher rate than all applicants, according to new research from Zillow.

In 2014, 17.3 percent of black mortgage applicants in Houston were denied, compared to 10 percent of all applicants in the area. Although an improvement – in 2013, the difference was 10.2 percent of all applicants, 19.6 percent of black applicants – the disparity is pronounced, albeit better than the national rate of 11.2 percent for all applicants and 23.5 percent for black applicants.

Disparities in Mortgage Lending

Other details from Zillow’s report included:

  • African Americans comprise 12 percent of the U.S. population, but in 2014, they accounted for only 3 percent of conventional loan applicants, and only 2.5 percent of those approved for a conventional loan.
  • Similarly, Hispanics make up 17.3 percent of the population, but represent only 6.1 percent of applicants and 5.5 percent of approved applicants.
  • Finally, Whites make up 62 percent of the population but 69.5 percent of conventional loan applicants, and are 71.9 percent of those approved.

This infographic compares Houston’s denial rates to those of other metro areas:

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