The troubling tale of a Black man trying to refinance his mortgage

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Lenders deny mortgages for Black homeowners at a rate 80% higher than whites applicants, according to 2020 data from the Home Mortgage Disclosure Act. - NBCBLK

So he went to an online mortgage marketplace and filled out all of his financial information. Then the calls began coming in. All the lender agents asked his race, but they all said he was not required to disclose it. He told the first lender he was Black.

He also disclosed his race to the second lender who called. That lender said they could do the refinance — apparently there was no ‘industry standard’ with townhomes — but at a higher rate than he and Melissa already had.Discrimination in home lending goes back to the beginning of home lending itself. During the last housing boom, when subprime mortgages were all the rage, predatory lending to minority borrowers was rampant.

For refinances specifically, Black borrowers are denied mortgage refinance loans, on average, 30.22 percent of the time, far higher than the overall denial rate of 17.07 percent, according to an analysis of the HMDA data by LendingTree, an online mortgage marketplace.lower incomes and lower credit scores

Two more lenders called Akridge, and he decided not to disclose his race. Both offered him competitive market rates on a refinance. One even offered to beat the other.

Source: Loan Digest (loandigest.net)

 

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NBCBLK Blaaax test low on the 'delayed gratification' test. They spend their welfare on bling rather than save.

NBCBLK Black and Hispanic communities must have: ✅Equally funded schools ✅Equal protection under the law ✅Equal sentencing ✅Equal lending ✅Equal access to voting ✅Equal water & environment ✅Equal healthcare Don't expect protests to end until such time.

KeishaBlain NBCBLK So what else is new in racist America?

rolandsmartin NBCBLK Systemic racism can’t be overcome by VOTING! Only SOVEREIGNTY protects Blacks from America! SOVEREIGNTY is EQUALITY! VOTING is CAPITULATION to a RACIST OPPRESSIVE REGIME! IndependenceMatters BlackTwitter Blackmen BlackWomen BlackExodus ProjectSeparation 8States BlackVote

NBCBLK This, of course, is not right. However, the story should have referenced the disparity of the rate of denial between similar financially situated black and white refinance applicants. The story did mention some of the disparity was due to income and other differences. How much

NBCBLK What are the credit scores, incomes, and other factors?

NBCBLK Most of it is a computer model that predicts the probability of default. Not a lot of human element to it.

NBCBLK Whats most interesting about these comments? The ones who say race wasn’t a factor are white people 👀👀👀. Stop speaking on issues that you’ve never experienced and just maybe listen for a change. It took a live video for you to believe that Police Brutality to exist! 🤬

NBCBLK Should lenders not be aware of race when making a decision? How could we exclude race so they can’t tell?

NBCBLK Its race bait witten by a black person who hates White people. Notice the cap letters and non cap letters. Race is all they have and all focus, write something interesting and educational.

NBCBLK NBC, your HQ for racist propaganda. This has been posted repeatedly. How much is ENOUGH?

NBCBLK I’m sure it was because of his race and had nothing to do with other financial factors 🙄

NBCBLK maybe a higher percentage are unqualified

NBCBLK I thought this was common knowledge. Along with redlining but believe it’s improved since the 80s/90s

Nettaaaaaaaa NBCBLK GD!

NBCBLK QUE EL MUNDO SE ENTERE QUE ES UN ASQUEROSO DEPREDADOR SEXUAL DE NIÑAS...

Nettaaaaaaaa NBCBLK Lender is telling me that FREDDIE/FANNIE is suddenly denying 70% of all loans due to recent changes in criteria. Sounds like the USPS. Pushing loans to higher rate bank loans. And our credit scores are super high. greedybastards

NBCBLK Banks lend $ to people who qualify - skin color is not an issue - why try and make this into something it isn’t?

NBCBLK Zero facts, just speculation and accusations to push a narrative. Zero journalistic credibility.

NBCBLK More fake race peddling from NBC!

NBCBLK I am not saying this article is accurate or inaccurate but can we get some statistics here. Like what exactly was his DTI, credit profile compared to a white persons DTI, credit profile. There are several factors other than “ I have a 780 or 800” credit score

NBCBLK Pay your bills then?

NBCBLK Interesting that you don't need much money to get a house anymore. Watch for a housing crisis in 5 to 10 years.

NBCBLK why is this article published? Is it necessary to include race into any story?

NBCBLK I don't think they go by skin color. It is more about credit score

NBCBLK News without the complete story. Why? Loans are given to PEOPLE with the ability to pay them back. Based on income, based on credit history. Dept to income. And mostly down payment. Loan officers get paid to write mortgages, do you think they care what your skin color is?

NBCBLK More media crap. There should legislation in place to stop propaganda from these idiots.

NBCBLK

NBCBLK Those who forget the past (Obama pushing and sued banks to give unsecured loans to those who cannot afford them) are doomed to repeat it.

NBCBLK I don’t see this study as being anything other than propaganda. You don’t have a big B next to your name or a big W either. The credit scores and FICO scores are a way to judge risk. I think bankers have a job making sure the house note gets paid.

NBCBLK Anyone want to buy a bridge?

NBCBLK Complete fiction. Zero lenders would call and ask a borrower their race. Somebody is lying here.

NBCBLK Don't Forget to Watch.

NBCBLK Clearly racist practice. But it goes to my point on a school article where i suggested NO RACE QUESTION. base it off your finances in this case, or gpa and vlountering in the school one. Race has no place in decesions like these. Judge on content of character not skin color.

NBCBLK Buy the house you can afford, not the house you want!!! Pretty simple!!

NBCBLK And still they say systemic institutionalized racism don't exists

NBCBLK are you only tracking blacks? which category does multiracial fall into?

NBCBLK All those lenders, who are in business to make a profit by making mortgage loans, are refusing to make loans to them? There must be a very high risk that those loans would never be repaid. What are you doing to solve that problem?

NBCBLK What were denials based on?

NBCBLK Cardi is untalented!!! Cardi is untalented. Cardi is untalented Cardi is untalented Cardi is untalented Cardi is untalented Cardi is untalented Cardi is untalented Cardi is untalented

NBCBLK Black Lives Matter is not just about police brutality.

NBCBLK 😡😡😡😡😡

NBCBLK When have banks not been racist?

NBCBLK But why?

NBCBLK How does a credit system know if you’re black, white or purple?

NBCBLK lol stfu

NBCBLK Shocking said no one

NBCBLK Don't want a repeat of 08 with sub primes for the sake of being 'correct' do we?

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