Lexington-Fayette Urban County
Human Rights Commission
FOR
IMMEDIATE RELEASE
April 5, 2023
CONTACT: William Wharton, Executive
Director Ph: 859-252-4931
Kathy Riley, Community Relations Coordinator
HRC Publishes 1997 Analysis of Mortgage
Lending Report
Black home mortgage loan applicants were denied two to three times more often
than white applicants at most lending institutions in Lexington-Fayette County.
According to the 1997 Analysis of Mortgage Lending Report released by the
Lexington-Fayette Urban County Human Rights Commission today.
The
Commission study analyzes and reports lending trends, as reported under the Home
Mortgage Disclosure Act (HMDA), on an annual basis.
The study is a statistical analysis of the home mortgage lending
practices of seven local lending institutions located in Lexington-Fayette
County.
The
study found that the historical trend of higher mortgage loan approval
percentages for white applicants continued in 1997.
On average, the white applicants’ approval rate was approximately 85%
and white applicants’ approval percentages increased as white income levels
increased. Whites increased from
79% approval, at the less than 80% of the average median income category, to 90%
approval, at the greater than 120% of the average median income category.
Black applicants received a lower approval percentage rate of 60% and the
approval percentages for black applicants did not increase as income levels
increased, as with white applicants. Approval
percentages for black applicants fluctuated in a random pattern.
Blacks not only started out with a lower approval percentage rate, but
also, as income levels increased beyond the 99% of the average income category,
approval percentages did not increase. Regardless
of income, the overall denial percentage for blacks remained at approximately
30%.
In
addition, the study found that as the black population percentage increased in
an area the number of white applicants and white approval percentages decreased.
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