As part of our most recent Ohio Housing Needs Assessment, we examined Home Mortgage Disclosure Act (HMDA) data from the Consumer Financial Protection Bureau to better understand the challenges prospective borrowers face. For Ohioans applying for a mortgage loan, we found that the likelihood of being denied by a lender can vary considerably depending on factors such as the purpose of the loan or the race of the applicant.
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Sources: 2021 Home Mortgage Disclosure Act (HMDA) data, Consumer Financial Protection Bureau
Notes: Denial rate is the percentage of mortgage loan applications denied by lenders. Applications include pre-approval requests. Applications withdrawn by applicant, files closed for incompleteness, and loans purchased by a financial institution are excluded from the analysis. If the loan falls into more than one of the three loan purpose categories, the loan is reported under just one category, according to the following rule: if the loan is at least in part of home purchase, it is reported as a home purchase loan; if the loan is for home improvement but not home purchase, it is reported as a home improvement loan. Refinancing loans are only counted if neither of the other loan purpose categories apply.
