Discriminatory Lending:
A 2019 analysis by Consumer Reports found that in Chicago, Black mortgage applicants were 2.4x more likely to be denied than white applicants with similar financial profiles
The Center for Investigative Reporting documented in 2018 that major banks like JPMorgan Chase approved a significantly lower percentage of Black applicants compared to white applicants with similar debt ratios and credit scores
Appraisal Bias:
The Brookings Institution study in 2018 found homes in majority-Black neighborhoods were valued 23% less than comparable homes in majority-white areas
In 2021, a Black couple in San Francisco documented receiving a $500,000 higher appraisal after having a white friend stand in for them during the process
Steering Practices:
A 2019 Newsday investigation on Long Island found that real estate agents provided white clients with 50% more property listings than equally-qualified Black clients
The same investigation recorded agents directing white homebuyers to predominantly white areas while steering Black homebuyers to more diverse neighborhoods despite similar price points and preferences
Predatory Lending:
A 2018 study by the National Fair Housing Alliance found that in Philadelphia, predatory lenders targeted majority-Black zip codes with high-interest loans at 3x the rate of comparable white areas
The Center for Responsible Lending documented that during the 2008 crisis, Black borrowers were 2.8x more likely to receive subprime loans compared to white borrowers with similar credit profiles
Algorithmic Bias:
A 2021 study by researchers at UC Berkeley found that algorithmic lending systems rejected minority applicants at higher rates than white applicants with comparable financial metrics
The National Bureau of Economic Research found fintech lenders' algorithms charged higher interest rates to equally qualified minority borrowers compared to white borrowers
Discriminatory Advertising:
In 2019, HUD charged Facebook with violating the Fair Housing Act by allowing advertisers to exclude viewers by race/ethnicity from seeing housing ads
A 2020 Suffolk University Law Review study found that real estate websites' targeted marketing algorithms showed different property listings based on users' perceived race
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