Acorn study: Minority loan rejection high

November 13, 1998
Acorn, a national organization
of community groups, released a report this week showing minorities were rejected for home mortgages at a much higher rate than white applicants from 1995-1997.
     Rejection rates for minorities rose even as a strong economy, low interest rates, and easy terms allowed many families to buy homes for the first time.
     Acorn (the Association of Community Organizations for Reform Now) studied data filed with the U.S. Department of Housing and Urban Development by 9,041 lenders in 35 cities. During the three years studied, the lenders examined took 4.91 million applications for conventional and government-backed home-purchase mortgages and originated 3.48 million loans.
     Acorn's study found nearly 33 percent of applications from blacks were rejected in 1997, up from 15 percent in 1995. Rejections of applications by Hispanics rose to 28 percent from 22 percent in the same period.