The Center’s Fair Lending Presentation at the Detroit Association of Realtors Homearama held on November 11, 2023
Lending Disparities Persist in the Detroit Market
At a recent Detroit Association of Realtors® recent homearama event, the Center prepared a PowerPoint that addressed three topics:
I. Importance of Home Ownership & Disparities in Home Ownership Rates
II. Fair Housing & Buyer “Love Letters”
III. Proving Lending Discrimination: Testing & Comparable Loan Files
Notable findings include:
- The Black/White disparities in homeownership rates were greater in 2022 than in 1970, despite passage of the federal Fair Housing Act in 1968.
- Current HMDA data shows that racial disparities in lending continue in the Detroit market. The loan origination rate for Black applicants in Detroit was just 40% in 2022. Subprime indicators were 20.63% in Detroit for Black applicants, in comparison to 5.36% for White applicants.
- There are stunning disparities in loan origination rates among lenders. The top performing lenders originated loans in Detroit at rates of 100% (88 applications), 75.97% (154 applications), and 70.71% (140 applications). At the bottom end, lenders originated loans at 0% (208 applications), 1.99% (151 applications), and 4.05% (247 applications).
- Appraisals in Detroit appear to be receiving close scrutiny, with the appraised value of homes in Detroit more often listed as a reason for denial of a loan application than in other communities.
The Center welcomes careful consideration of its PowerPoint presentation for those interested in addressing disparities in the Detroit lending market.










