Minority Groups Continue to Suffer Unequal Impact in the Mortgage Process – RISMedia |

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The Consumer Financial Protection Bureau recently released a Home Mortgage Disclosure Act (HMDA) data report highlighting trends in home mortgage lending. The total number of closed sources and applications increased significantly between 2019 and 2020.

Main conclusions:

– Open loans (excluding reverse mortgages) increased in 2020 by 65.2% to 13.6 million.

– The growth was mainly driven by the refinancing boom in 2020.

– While the number of financial institutions reporting HMDA data for 2020 has decreased compared to 2019, the number of closed reports in 2020 has increased compared to the same period last year.

– Although mortgage activity generally increased year on year, significant differences continued between demographic groups, including higher interest rates and withdrawals from black and Hispanic consumers in the mortgage market.

Output:

“Initial observations of the national mortgage market in 2020 are welcome news as total home purchase and refinancing loans have improved from 2019,” said CFPB Acting Director Dave Weggio. “Unfortunately, black and Hispanic borrowers continued to have fewer loans, were more likely to be rejected than non-Hispanic white and Asian borrowers, and paid higher average interest rates and overall loan costs. It is clear from this data that our economic recovery from the COVID-19 pandemic will not be sustainable if it remains uneven for mortgage borrowers of color. ”



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