A new study found Asian Americans applied for and obtained a larger share of mortgages than other minorities, but face the same high denial rates of similarly situated minorities, reports Marketwatch.
The findings from Marsha Courchane and Adam Gailey of Charles River Associates, and Rajeev Darolia of the University of Missouri were as varied as the Asian American community itself.
Those in the United States who are from Korea had the highest levels of mortgage application denial of any minority group. Those from Japan had even lower denial rates than even non-Hispanic whites.
The study’s authors say the challenges faced by minorities who have traditionally had high mortgage denial rates are the same challenges faced by Asian Americans.
“Despite the significant growth of mortgage originations in the Asian American community, there has been very limited research regarding the lending patterns for Asian Americans,” said Carmen Chong, chair of the Asian Real Estate Association of America This research points to the higher denial rates for mortgage originations facing certain Asian subpopulations. To understand this issue and expand full access to mortgage credit for all Americans, we are looking forward to working with the lending industry to create equitable solutions for all Asian American borrowers.”
On the positive side, the study found Asian Americans have higher credit scores, lower debt-to-income ratios, and lower loan to value ratios, making them well positioned to obtain mortgage credit.