Mortgage Loans Origionated
Why is this important?
The Home Mortgage Disclosure Act requires most lending institutions to disclose information on mortgage disposition, including loan origination rates and demographics of the recipient. Disposition refers to the ultimate outcome of the loan application. This data can help determine if lending institutions are meeting the community’s housing needs and reveal if wealth-building from homeownership is equitable [i]. Access to credit for homeownership is the central path to wealth creation for American households, but access to affordable home loans is not always equitable across all races. Disparities in lending may be driven by a combination of discriminatory lending practices and by a dearth in mortgage loan applications for people of color [ii]. Increasing housing prices are an additional barrier to a potential mortgage loan application.
[i] “Home Mortgage Disclosure Act.” National Neighborhood Indicators Partnership. 2017. Web 28 June 2017. <http://www.neighborhoodindicators.org/data-source/4>.
[ii] Werblin, Sasha, Zach Murray, Vedika Ahuja, and Hibba Meraay. “Locked Out of the Market: Poor Access to Home Loans for Californians of Color.” Economic Equity. (2017). http://greenlining.org/wp-content/uploads/2017/06/HMDA2016.pdf