by Spencer Cowan and Katie Buitrago

The following analysis examines patterns of negative equity in communities of different racial and ethnic compositions in the Chicago six county region. It combines 2011 data on negative equity in Chicago region ZIP codes with U.S. Census data on the racial/ethnic composition of ZIP Code Tabulation Areas (ZCTA). It finds that negative equity is disproportionately concentrated in the Chicago region’s African American, Latino, and majority minority neighborhoods, and that borrowers in communities of color have much lower equity than do borrowers in predominantly white communities. This report concludes with recommendations to reduce the impact of declining property values and the number of homeowners with negative equity, including broader use of principal reduction loan modifications and short sales.

Paying More for the American Dream V examines changes in conventional refinance lending between 2008 and 2009 in seven metropolitan areas: Boston, Charlotte, Chicago, Cleveland, Los Angeles, New York City, and Rochester, NY. It also compares 2009 loan denial rates across neighborhoods. In all seven cities analyzed, lenders denied loan applications at significantly higher rates in communities of color than in predominantly white neighborhoods. The report concludes with policy recommendations to improve access to sustainable credit in communities of color.

press release | briefing (mp3)

This report, released by a national coalition of research, policy and advocacy organizations, examined mortgage lending patterns of banks in seven metropolitan areas and found a dramatic decrease in prime home purchase and refinance loans to communities of color. The report includes appendices for each metropolitan area and policy recommendations.

press release

This report analyzes 2007 Home Mortgage Disclosure Act data and finds that, in low- and moderate-income communities, depositories with CRA obligations originate a far smaller share of higher-cost loans than lenders not subject to CRA.  It also finds that lenders covered by CRA are much less likely to make higher-cost loans in communities of color than lenders not covered by CRA.

A joint report by:

California Reinvestment Coalition, Community Reinvestment Association of North Carolina, Empire Justice Center, Massachusetts Affordable Housing Alliance, Neighborhood Economic Development Advocacy Project, Ohio Fair Lending Coalition, and Woodstock Institute

Jim Campen, Saara Nafici, Adam Rust, Geoff Smith, Kevin Stein, and Barbara van Kerkhove

This report demonstrates that African-American and Latino borrowers are paying more than their white counterparts for home purchase loans in six geographic areas:  Boston, Charlotte, Chicago, Los Angeles, New York, and Rochester.  This review of federal lending data shows dramatic disparities.  For example, in New York, African-American borrowers were five times more likely to receive higher-cost home purchase loans than were white borrowers.