Data finds that Blacks and Latinos in California have a harder time getting home loans
According to federal mortgage data, of the over 296,000 home loans issued in California in 2015, 48.5 percent went to white homebuyers, while Latinos got 21.2 percent and African-Americans secured just three percent. The data was analyzed by The Greenlining Institute and National Community Reinvestment Coalition, which studied mortgages issued statewide. The report focused specifically on home lending in Oakland, Fresno and Long Beach, which are ethnically diverse cities with low-income residents and they are cities that are undergoing gentrification. Vedika Ahuja, lead author of the report, stated,
Homeownership continues to be the most powerful way for families to build intergenerational wealth, and we see it as crucial to closing the racial wealth gap.
In Oakland, only seven percent of the home loans in 2015 were given to black households despite African-Americans making up 28 percent of the city’s population. According to the report, five of the top 10 home loan lenders in California were non-banks. For example, Latinos made up 47 percent of the population in Fresno in 2015 and nine out of the top 10 home loan lenders were non-traditional bank institutions. The city of Oakland even sued Wells Fargo in 2015, accusing the Bay Area-based bank of targeting African-American and Latino residents with more expensive loans that caused many to lose their homes during the subprime mortgage crisis. The report’s findings were interesting and highlight an issue that many people may not be aware is happening.