The state of minority access to home mortgage lending

The past decade witnessed remarkable improvements in minority access to mortgage credit. During this same period, however, concerns about the quality of that credit have become more salient. Using HMDA data, this paper examines the challenges still facing black and Hispanic households in the mortgage market, as viewed from the vantage point of the greater New York metropolitan area. The paper illustrates that, while minority homeownership rates have increased, blacks and other minorities are often still denied mortgages at a higher rate than whites, face higher costs for credit, and are more vulnerable to foreclosure. The author argues that CRA is not equipped to fully address these issues, and other legislative and regulatory actions may be required.