Federal Housing Administration

Racial Disparities Significant In Mortgage Rejections

WASHINGTON — For millions of Americans hoping to buy or refinance a home, it’s a crucial make-or-break question: Will the lender say yes to our mortgage application, turn it down or charge us a higher interest rate than we need?

Surprisingly, large numbers of loan applications don't make it. Roughly one of every nine loan applications (10.8 percent) to purchase a home — and more than one in four applications (26.4 percent) for a refinancing — were denied in 2017, according to a new analysis of lender data nationwide conducted by the federal Bureau of Consumer Financial Protection.

But these numbers look dramatically different when you dig down and check out the race and...

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