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7 EXAMINING RACIAL BARRIERS IN HOMEOWNERSHIP While mortgages are denied for people of all races, a new LendingTree analysis of 2020 Home Mortgage Disclosure Act (HMDA) data found that the share of Black homebuyers who have their mortgage requests denied is notably higher than the share of the overall population who sees the same. One obstacle Black Americans disproportionately face is getting their mortgage requests denied by lenders. Racial barriers to homeownership in the United States are undeniable for many, with Black Americans often facing the most hurdles during the homebuying process. LendingTree found that the purchase mortgage denial rate for Black homebuyers across the nation's 50 largest metropolitan areas is an average of 9 percentage points higher than the denial rate for the overall mortgage borrower population. In other words, this means the denial rate for Black borrowers is double the denial rate for the overall borrower population. Key findings: » e purchase mortgage denial rate for Black homebuyers is twice as high as the denial rate for the overall mortgage borrower population in each of the nation's 50 largest metros. On average, 18% of Black homebuyers are denied a mortgage—9 percentage points higher than the average denial rate for the overall population of 9%. » St. Louis, Boston, and Jacksonville, Florida, see the largest percentage point differences between the denial rates for Black borrowers and the overall borrower population. Across these metros, the denial rate for Black borrowers is an average of 13.36 percentage points higher than the denial rate for the overall mortgage borrowers population. » San Francisco, Sacramento, California, and Seattle see the smallest percentage point differences between the denial rates for Black borrowers and the overall borrower population. ough Black borrowers are more likely to be denied a mortgage in each of these metros, the average spread between their denial rate and the denial rate for the overall population is a relatively low 3.94 percentage points. » Denial rates for Black borrowers are highest in Detroit, Miami, and Jacksonville, while they're lowest in San Francisco, Seattle, and Sacramento. Across Detroit, Miami, and Jacksonville, the average denial rate for Black borrowers is 25.52%—more than double the average denial rate of 12.55% across San Francisco, Seattle and Sacramento. ough they can vary by metro, denial rates for Black borrowers are higher than 10% in each of the nation's 50 largest metros. Journal Compiled by the DS News Staff TA K E A L O O K I N S I D E T H E N U M B E R S DATA BITS Source: Redfin, "Pandemic Homebuying Hotspots With Steep Price Increases Most Susceptible to Housing Downturn in a Recession" I N S I D E T H E J O U R N A L | I N F O S T R E A M | T H E D I G I TA L E D G E | M O V E R S & S H A K E R S According to ATTOM's latest Vacant Property and Zombie Foreclosure Report, data showed that there were 1,277,162 properties sitting vacant across the country during Q3 of 2022. Pre-foreclosure properties accounted for 7,707 zombie-foreclosures in Q3 of 2022, up 1.8% from Q2, and 2.2% from 2021. 1. JUNEAU, ALASKA 2. FARIBAULT, MINNESOTA 3. MOSCOW, IDAHO 4. FERNLEY, NEVADA 5. PRINEVILLE, OREGON 6. HELENA, MONTANA 7. RED BLUFF, CALIFORNIA 8. PORT ANGELES, WASHINGTON 9. HOOD RIVER, OREGON 10. SHERIDAN, WYOMING TOWNS WITH THE LOWEST VACANCY RATES: 1. BRECKENRIDGE, COLORADO 2. VINEYARD HAVEN, MASSACHUSETTS 3. KILL DEVIL HILLS, NORTH CAROLINA 4. HAILEY, IDAHO 5. EDWARDS, COLORADO 6. HEBER CITY, UTAH 7. STEAMBOAT SPRINGS, COLORADO 8. TAOS, NEW MEXICO 9. BOONE, NORTH CAROLINA 10. LACONIA, NEW HAMPSHIRE TOWNS WITH THE HIGHEST VACANCY RATES: CITY RANK CITY RANK SVP of Underwriting & Credit, Freddie Mac Multifamily Page 26 Movers & Shakers WITH Ian Ouwerkerk