NCRC Statement on the Release of 2012 Home Mortgage Disclosure Act Data

Washington, DC – Today, in reaction to the release of 2012 Home Mortgage Disclosure Act (HMDA) data, NCRC President and CEO John Taylor made the following statement:

“Today, the federal government released Home Mortgage Disclosure Act data for 2012. The data shows a recovering housing market but also illustrates the prevalence of persistent racial disparities in lending.

NCRC calculates that nationwide, African Americans experienced a denial rate of 40 percent for conventional home purchase lending in contrast to a denial rate of 15 percent for whites. African Americans were 2.7 times more likely to be denied a conventional home mortgage loan than whites. When controlling for income, the racial disparities remain. Upper-income African Americans and Hispanics were 2.4 times and 1.7 times more likely than whites to be denied conventional mortgage loans, respectively.”

“On the positive side, the 2012 data indicates that the housing markets are starting to recover as lending increased from 2011. Home purchase lending across the country increased 13 percent from 2011 to 2012 and refinance lending increased 54 percent according to the Consumer Financial Protection Bureau. In addition, reliance on government-backed FHA lending for home mortgage lending was reduced; the share of FHA of home mortgage lending declined from 31 percent in 2011 to 27 percent in 2011.”

“NCRC calls upon HUD, the CFPB, and the prudential regulators to more fully investigate the racial disparities the data shows and to take immediate action.”

“While it is encouraging that lending has increased from 2011 to 2012 with a modest decrease in reliance on government-backed lending, stakeholders should take steps to increase home mortgage lending in line with the increases in refinance lending.”

“NCRC also applauds the Consumer Financial Protection Bureau (CFPB) for today releasing an online tool for employing HMDA data in a user-friendly manner. We agree with and applaud CFPB Director Cordray’s remarks today on transparency and the power of information. We urge the CFPB to commence the rulemaking required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 for improving HMDA data and enhancing small business lending data.”

About the National Community Reinvestment Coalition (NCRC):

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.

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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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