Lenders funded a smaller percentage of minority mortgage applications than the national average in every case except for Asians during 2011. Disappointing? Yes. Surprising? No.
Recently released Home Mortgage Disclosure Act data show that 59.27% of all mortgage apps were funded last year. But lenders funded just 50% of loans from African-American applicants, 54% from American Indians/Alaska Natives, 56% from Hispanics and 57% from Native Hawaiians/Pacific Islanders.
Only Asians, who saw 64% of their apps funded last year, beat the national average, as did whites, also with 64%, 14% above the ratio for blacks and 12% above Indians.
As always, a good number of borrowers did not list a race or ethnicity (the government considers Hispanics an ethnicity rather than a race) but I think we can assume the “others” category isn’t much different. By the evidence of HMDA, liquidity remained low as mortgage lenders continued to keep the purse strings tight in 2011. Unfunded mortgages went down slightly in dollar volume from 2010, from $1 trillion to $967 billion, but the percentage actually went up, from 38% to 40.7%, as total volume dropped between the two years from $1.6 trillion to $1.4 trillion.
African-Americans had $45.5 billion in loans approved last year, while $44.6 billion were unfunded. Indians saw $5.2 billion in mortgages funded, versus $4.5 billion unfunded. Hispanics had $57.6 billion unfunded, with $74 billion in successful apps. Native Hawaiians received $4.6 billion in mortgages, versus $3.8 billion unfunded. Whites tallied $1 trillion in successful apps and $605 million in unsuccessful.
Total mortgages to minorities last year came to $241 million, or 17% of total loans funded. That’s a slight rise from 16.7% in 2011, but remains well below their percentage in the population.
Looking at the state tallies, New York was the lowest in percentage of Hispanic loans approved, at 46%. California lenders approved 58% of loans and had the highest Hispanic dollar volume, $26.6 billion (more than a third of the total). North Dakota had the highest approval ratio, at 70%.
Puerto Rico showed the lowest approval rate for American Indians, at 36%. California lenders funded the highest dollar volume of loans, $1.3 billion, while Alaska had the highest percentage of approvals (67%).
Puerto Rico also had the lowest ratio of approvals for Asians, at 48%. California lenders funded the most Asian mortgages, at $30 billion.
California also funded the most loans to African-Americans, at $4 billion. New York and Louisiana shared the least percentage of loans funded in this category at 43%.
Puerto Rico funded just 32% of its Native Hawaiian apps. California led again with total fundings at $1.3 billion, twice the volume of the next state, Hawaii.
