National Studies of Lending Trends

With new information in HMDA data concerning high-cost loans, NCRC has created a series of studies documenting that minorities, women and the elderly receive a disproportionate amount of high-cost or subprime loans.  When a group of borrowers receives a disproportionate amount of such loans, excessive fees, interest rates and other unfair practices become more likely, as this group of borrowers faces few product choices and does not benefit from robust competition among lenders.   NCRC’s studies have shown that, after controlling for creditworthiness, minorities and other protected classes are still more likely to receive subprime loans.  These studies motivate stakeholders to address stubborn and persistent lending disparities and to increase product choice in all communities.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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