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  • Home
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Discrimination in Loan Denials: Evidence from the Housing Market in Massachusetts

Source: UMass Donahue Institute's Economic & Public Policy Research Group. 2021. Mortgage Lending Trends in Massachusetts. Community Banking Council Report.

Racial and ethnic discrimination in loan denials continues to be a pressing issue, perpetuating disparities in homeownership and hindering wealth-building opportunities for marginalized communities. Loan denial rates for Black and Hispanic/Latinx borrowers remain twice as high compared to those for White borrowers, despite an overall decline in loan denials for all housing loan applicants since the great recession. In this context, the reasons cited for loan denial were found to differ by race and ethnicity as minorities were denied loans due to insufficient collateral, while white applicants were denied based on their credit history.

In Massachusetts, as in many other regions, Black and Hispanic/Latinx applicants face higher rates of loan denials compared to their white counterparts, even when accounting for factors like income and credit scores. Although the disparity has decreased over the years, it persists and its continued existence suggests the presence of systemic bias and discriminatory practices within the lending industry.

Historically, discriminatory practices such as redlining, which classifies minority communities as risky investments, have contributed to the existing disparities in access to housing and mortgage loans for racial and ethnic minorities in the Commonwealth. Despite legislative efforts to promote fair lending, studies have shown that discriminatory practices persist. Denied access to affordable loans and homeownership, minority communities are more likely to rent their homes, limiting their ability to build wealth through property ownership.

Addressing racial and ethnic discrimination in loan denials necessitates comprehensive and coordinated efforts. Research suggests that stronger enforcement of fair lending laws and increased investment in financial education can improve loan outcomes for marginalized communities.

Nayantara Biswas

Research Assistant

Michelle Borges

Former Research Assistant


This is a part of the AEC Blog series

tags: Nayantara Biswas, Michelle-Borges
Tuesday 10.03.23
Posted by Liz Stanton
 

Disproportionate Impacts of Abortion Access

Source: Rader B, Upadhyay UD, Sehgal NKR, Reis BY, Brownstein JS, Hswen Y. 2022. Estimated Travel Time and Spatial Access to Abortion Facilities in the US Before and After the Dobbs v Jackson Women’s Health Decision. JAMA. Available at: https://jamanetwork.com/journals/jama/fullarticle/2798215

In June 2022, the U.S. Supreme Court’s decision in Dobbs v Jackson Women’s Health Organization ended the federal constitutional right to abortion care. Complete abortion bans are effective in 13 states, while 11 states have partial abortion bans based on the age of the fetus or are likely to implement bans soon. Research revealed that abortion patients in these restricted states are more likely to be black and low-income individuals compared to states where abortion is currently legal. Most patients reported having to cross state lines to access care.

Each additional 100 miles of travel distance was estimated to prevent an added 21 percent of individuals from obtaining an abortion even before the ban. Current abortion restrictions increased the average travel time to a clinic by over 4 hours. Individuals living more than an hour from abortion clinics are more likely to be low-income and less likely to have health insurance or a high-school diploma. Accessing abortion clinics is particularly challenging for Black, Hispanic, and Indigenous populations, and these communities continue to report the highest maternal mortality rates in the United States.

Studies indicate that lower earnings, insufficient job security, and higher incarceration rates among minorities in abortion-ban states exacerbate limitations in healthcare access. Public-private partnerships can mitigate some of the burdens these groups face, such as investing in clinics and public awareness programs, and providing financial assistance to uninsured individuals.

Nayantara Biswas

Research Assistant


This is a part of the AEC Blog series

tags: Nayantara Biswas
Thursday 09.28.23
Posted by Liz Stanton