NCRC Statement on the Release of 2013 Home Mortgage Disclosure Act Data

Washington, DC – Today, in reaction to the release of 2013 Home Mortgage Disclosure Act (HMDA) data, NCRC President and CEO John Taylor made the following statement:

“The Home Mortgage Disclosure Act data for 2013 makes it clear that there is a closing window of opportunity for low- and moderate-income communities and communities of color. This troubling trend shows the dire need for action on several fronts. Financial institutions clearly need to do a much better job serving underserved communities. Government leaders need to embrace federal housing policies that are going to promote homeownership opportunities for all creditworthy borrowers, and encourage responsible investment in all communities. Federal regulators need to pay close attention to the disparities this data shows, and step up enforcement of fair lending laws. Overall, we need to sound the alarm that creditworthy borrowers are increasingly being excluded from homeownership, which is the number one mechanism for entering the middle class.”

“A new America is being created where homeownership is being replaced with higher cost rentals. Our housing industry suffers from this model and working-class Americans are stopped from building wealth. None of this bodes well for our economy or American families.”

The 2013 HMDA data shows the following:

  • The volume of home lending declined 11 percent, to 8.7 million from 9.8 million in 2012, according to the Federal Reserve Board.
  • African Americans experienced a denial rate of 29 percent for conventional home purchase lending in contrast to a denial rate of 11 percent for whites. African Americans were 2.6 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 2.3 times and 1.8 times more likely than whites to be denied conventional mortgage loans, respectively.
  • Home purchase lending across the country increased 13 percent from 2012 to 2013. However, the share of home purchase lending to low- and moderate-income borrowers declined from 33.4 percent in 2012 to 28.4 percent in 2013.
  • In contrast to the increase in home purchase activity, refinance lending for one- to four-family properties dropped by 23 percent in 2013.
  • The share of FHA home purchase lending declined from 31 percent in 2012 to 24 percent in 2013 according to the Consumer Financial Protection Bureau.


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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