The National Association of Real Estate Brokers (NAREB) released their annual report, 2017 State of Housing in Black America, on September 20. The report indicates that while the black homeownership rate rose from 41.3% in the third quarter of 2016 to 42% in the first two quarters of 2017, racial disparities in access to credit and homeownership persist.
Among the report’s findings:
- Sixteen percent of black borrowers received high-cost loans in 2015, compared to 6% of non-Hispanic white borrowers. This represents, however, an eleven percentage-point improvement for black borrowers from 2014.
- Seventeen percent of black mortgage applicants in 2015 were denied a loan versus 8% of non-Hispanic white applicants.
- Thirteen percent of black mortgage applicants withdrew or failed to complete their application versus 10% of non-Hispanic white applicants.
The report recommends updating the credit score model used by Fannie Mae and Freddie Mac to include better, more detailed data. The report also recommends homeownership counseling for Black borrowers to ensure they are better prepared for homeownership and to help them complete the mortgage application process.
2017 State of Housing in Black America is available at: http://bit.ly/2xmnUMA