For generations, homeownership has been part of the very definition of the American dream. First-time buyers face a process that can be both exciting and daunting—the right home, in the right community, and with the right financing.
As housing costs continue to rise and first-time home purchases are delayed more than ever, securing a mortgage at a competitive rate is vital to making homeownership possible, which underscores the need for an accurate and comprehensive way to analyze borrowers’ creditworthiness.
Unfortunately, nearly 1 in 10 potential homebuyers are denied a mortgage when they apply, and that number is considerably higher for young adults, lower-income individuals, and minority borrowers.
Hispanic applicants are denied conventional mortgage financing at more than twice the rate of non-Hispanic white applicants, even when income and credit factors are similar, resulting in Hispanic families’ homeownership rate well below the national average. This is a reality for too many American families across all demographic groups.
Homeownership builds equity and stability, ties families to their neighborhoods and strengthens local economies. Undermining access to credit means undermining that foundation, and we must continue to find ways to correct these inequities.