Black mortgage applicants denied at higher rates in Colorado

Black mortgage applicants are denied at almost twice the rate of white applicants in Colorado, according to a new Zillow analysis of Home Mortgage Disclosure Act data.

Why it matters: Homeownership is a key way to build generational wealth, but non-white Americans have historically been shut out of this opportunity due to systemic racism and segregation policies.

By the numbers: The data shows that 15% of Black mortgage applicants in Colorado were denied in 2020, compared to 9% of white applicants.

Zoom in: The most common reason for the rejections was poor credit history, Zillow reports.

• Pandemic-related setbacks have disproportionately impacted communities of color, and as a result, made gaps in credit access harder to close.
• Hispanic and American Indian or Alaska Native Coloradans are also denied at higher rates — 15% and 16% respectively.

What they're saying: "Student loans, debt-to-income ratio, a lack of cash reserves and low credit scores" are the leading factors preventing Black residents from homeownership, Milford Adams, board chair of the Denver Metro Association of Realtors, tells Axios.

Between the lines: Home prices continue to soar across Colorado, widening the affordability gap for many hopeful buyers and creating additional barriers.

Zoom out: Nationwide, 20% of Black applicants were denied, the highest among all races, compared to 11% of white applicants.

• The pandemic's disproportionate impact is "making the journey to equity even slower than it already was," Zillow market analyst Nicole Bachaud writes in the report.
• Black homeownership overall has dipped in recent years, Zillow found.

Go deeper: Race and housing in America

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