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Policy Brief, Zachary Owen

Dean's Award for Excellence in Undergraduate Scholarship

The US grapples with a housing crisis, exacerbated in part by a shortage of conventional mortgage loans. Data from 2020 reveals a severe racial disparity, with 27.1% of Black mortgage applicants denied compared to only 13.6% of White mortgage applicants. These denial trends are highly correlated with homeownership rates. Current trends in homeownership by race mirror or exceed those present during the discriminatory practices of the 1960s. Lenders often cite low credit scores and high debt-to-income ratios as grounds for denial. Therefore, proposed solutions include mandating the inclusion of rental payment history in credit scores, offering free homebuying education, and …