SEEKING $4.25 BILLION
This is a good place to have an introduction sentence that speaks directly to why this pillar is important to CRA Baltimore. Mention where the $$ will go, is this a priority to your coalition, how will it affect you as the consumer.
For the region overall, African American loan applicants were denied mortgage loans twice as often as Non-Hispanic White applicants (36% v. 13%). The denial rate for Hispanic applicants was 19%. Baltimore City has a relatively high rate of denials for African Americans at 33%; Baltimore City also has the highest denial rate for Hispanic applicants.
A fall 2018 analysis of lending disparities by the Baltimore Business Journal examined the denial rates of the largest lenders in the Baltimore region. Those financial institutions, with a combined market share of 80 %, denied African American mortgage loans at 1.5 times the rate to Non- Hispanic White applicants.
The highest concentration of subprime loans--ranging from 20 to 44 percent of loans--are in Baltimore City and also overlap with African American concentrations.
Source: 2020 Analysis of Impediments to Fair Housing Choice in the Baltimore Region report by Root Policy Research
APPRAISAL BIAS & LENDING DESERTS
Homes in $150,000 to $175,000 range are critical for retaining the region's core workforce, and many homes at this price point exist in Baltimore City. Yet buyers have challenges buying the homes due to appraisals, which come in under the sales price due to lack of comparable units and negative adjustments associated with neighborhood conditions. There are non-profits working to create affordable housing options in the City, but these practices undermine their work.
The "Lending Desert" areas in Baltimore City should be targeted for valuebuilding (i.e., clustered rehabilitation to normalize appraisals) and black and brown developers should be supported.