This report examines more than one million loan applications filed in Central Indiana from 2007 to 2020 to investigate racial and geographic differences in loan denial rates. In 2021, we demonstrated the statistical relationship between historic redlining and a host of community conditions and outcomes. Now, we ask if mortgage applications are still more likely to be denied in historically redlined areas or for Black borrowers. We find that Black borrowers are twice as likely as White borrowers to be denied a loan, even when their income and debt are the same. We also find that borrowers of any race, when income and debt are the same, are 50 percent more likely to be denied a loan if they are trying to purchase a home in a historically redlined neighborhood compared to one that was never graded in redlining maps. Read more
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