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Paying More for the American Dream V

April 28, 2011

This report examines conventional refinance lending in seven key metropolitan areas. It looks at loan volumes in 2008 and 2009 in communities of color and in predominantly white neighborhoods. The report documents disparities in the changes in refinance lending over this  period and highlights disparate 2009 denial rates based on the racial composition of communities. Finally, the report includes recommendations for federal policy reforms to ensure that financial institutions provide access to fair and affordable mortgage loans, particularly in communities of color.

Access to conventional mortgage refinance lending is critical to homeowners and communities. Refinance loans are vital to homeowners seeking to benefit from lower interest rates improve their homes, finance small businesses, or pay for education. Refinance lending is especially crucial given the ongoing foreclosure crisis as homeowners struggle to stay in their homes. Access to sound refinance loans is critical to preserving community assets and neighborhood stability.

Since the onset of the financial crisis lenders have significantly decreased access to conventional refinance lending in communities of color, where the foreclosure crisis is taking an especially severe toll. In contrast, lenders significantly increased conventional refinance lending in  predominantly white neighborhoods.

Download PDF:  Paying More for the American Dream V


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