The Real Deal Miami

SoFla tops U.S. in conventional mortgage denials: report

Overall denial rate for the South Florida area was 21.2 percent

February 09, 2015 01:30PM
By Ina Cordle

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Miami-Fort Lauderdale led the nation in the overall conventional mortgage denial rate, including the share of home loan disapprovals for Asian and white applicants, according to a Zillow report released Monday.

The overall denial rate for the South Florida area was 21.2 percent, with 21.9 percent for Asian applicants and 17.9 percent for white applicants, according to the report, which was based on 2013 data.

Miami-Fort Lauderdale also ranked third among cities for denial rate for Hispanic applicants, at 23.6 percent; and fourth for the percentage of denials of black applicants, at 29.2 percent, the report showed.

Nationwide, 27.6 percent of of blacks and 21.9 percent of Hispanics who applied for a conventional mortgage were denied, while only 10.4 percent of white applicants were denied.

Zillow said the disparity in loan approvals is likely tied to a number of factors, including income. Minority applicants fare better when they apply for government-backed FHA loans compared to conventional loans, Zillow said.

“While many of the disparities between the experiences of white communities and minority communities during the housing boom and bust can be explained by plain differences in finances and geography, it’s clear that the housing playing field remains strikingly unequal in this country,” Zillow Chief Economist Stan Humphries said in a statement.

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