Home loans by race in 2020: Here’s how some NEO lenders rank

A new report from the National Community Reinvestment Coalition that analyzes data from the 2020 Home Mortgage Disclosure Act finds that while there was a surge in refinance loans at the start of COVID-19 that year, ” Benefits from lower interest rates went primarily to non-White Hispanic, Asian Indian, and Chinese homeowners.”

Average interest rates fell from 4.89% in 2018 to 3.09% in 2020, according to the NCRC.

Such HMDA analyzes are important, the agency points out, because of what the data shows. For example, “the explosion in refinance lending has reinforced historic patterns of divestment in low-income and Black, Indigenous and Communities of Color (BIPOC) communities.”

The factors at play driving lending disparities across races and communities can be myriad and nuanced, and more study is needed to explain what is happening.

Nonetheless, it is important to consider trends in who lends where and to whom in an attempt to understand the dynamics at play.

A local analysis of HMDA data by the Western Reserve Land Conservancy, for example, has raised questions about whether home lenders like KeyBank are paying enough attention to LMI communities in their Cuyahoga County backyard.

“HMDA data is essential for the public to understand both how lenders are performing and who benefits from their loans, and the 2020 data reveals a frustrating continuation of historic racial inequalities in access to credit and property,” said Dedrick Asante-Muhammad of the NCRC. Chief Membership, Policy and Equity Officer, in a statement. “Data collection and disclosure ensures transparency in the financial system, but it also exposes the persistent failure of our lenders, laws and regulators to bridge the racial divides between homeownership and wealth.”

Here are the overall racial lending patterns among some top real estate lenders that have a presence in Northeast Ohio. This information comes from a list compiled by the NCRC of the top 50 mortgage originators in the United States in 2020 for its latest report. As such, these are just a sampling of some lenders’ activity in this market:

• Accelerate lending
Total loans granted: 1,091,433
Loans to Whites: 50.2%
Loans without race: 31%
Loans to Asians: 7.1%
Loans to Blacks: 4.3%
Loans to Hispanics: 6.7%

• Fairway Independent Mortgage Corp.
Total loans granted: 210,563
Loans to Whites: 68.9%
Loans without race: 10.9%
Loans to Asians: 4.7%
Loans to Blacks: 5.3%
Loans to Hispanics: 9.6%

• JPMorgan Chase
Total loans granted: 209,895
Loans to Whites: 66.4%
Loans without race: 7.3%
Loans to Asians: 12.5%
Loans to Blacks: 3.4%
Loans to Hispanics: 10%

• Bank of America
Total loans granted: 170,994
Loans to Whites: 54.9%
Loans without race: 16.5%
Loans to Asians: 13.8%
Loans to Blacks: 5.3%
Loans to Hispanics: 9.1%

• American bank
Total loans granted: 165,827
Loans to Whites: 70.6%
Loans where race has not been provided: 12%
Loans to Asians: 8.4%
Loans to Blacks: 2.2%
Loans to Hispanics: 6.3%

• International mortgage
Total loans granted: 125,266
Loans to Whites: 67%
Loans where race was not provided: 8%
Loans to Asians: 5.4%
Loans to Blacks: 6%
Loans to Hispanics: 12.9%

• Citizens Bank
Total loans granted: 100,933
Loans to Whites: 73.4%
Loans where race was not provided: 14.1%
Loans to Asians: 5.1%
Loans to Blacks: 2.9%
Loans to Hispanics: 4.2%

• PNC Bank
Total loans granted: 86,546
Loans to Whites: 69.7%
Loans without race: 15.7%
Loans to Asians: 7.1%
Loans to Blacks: 3.4%
Loans to Hispanics: 3.7%

• Huntington National Bank
Total loans granted: 76,794
Loans to Whites: 80.4%
Loans where race was not provided: 11%
Loans to Asians: 3.2%
Loans to Blacks: 3.1%
Loans to Hispanics: 2.1%

• Fifth third bank
Total loans granted: 52,353
Loans to Whites: 86.7%
Loans without race: 1.8%
Loans to Asians: 3.5%
Loans to Blacks: 3.6%
Loans to Hispanics: 4%

• KeyBank
Total loans granted: 38,899
Loans to Whites: 76.1%
Loans without race: 13.7%
Loans to Asians: 4.9%
Loans to Blacks: 1.9%
Loans to Hispanics: 3.1%

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