MBA Issues Statement on “Flawed Analysis” of Mortgage Markup – RISMedia |

The Mortgage Bankers Association (MBA) recently released the following statement regarding The Markup’s flawed analysis of mortgages:

“The issue of fair loans is important, and MBA has and will continue to advocate for policies and practices that ensure lenders responsibly provide credit to all qualified borrowers, regardless of skin color. The problems associated with the lack of affordable housing and the home ownership gap among Blacks are real, and our members are committed to doing all they can to address them.

“From the start, we explained to The Markup that its analysis of HMDA data and its predetermined conclusions regarding mortgages fail to take into account several key elements that form the backbone of lending decisions, including credit score and the credit of a borrower. the story. As we told the authors, the Federal Reserve, CFPB, and other regulators have made it clear that denial disparities in HMDA data on their own cannot be used to assess fair loans. True fair loan reviews include a much richer body of information regarding loans and borrowers.

“We also informed the authors early on that by limiting their analysis to only ‘conventional’ loans, they would paint an incomplete picture of the lending environment by deliberately excluding mortgages guaranteed by government agencies like the Federal Housing Administration. (FHA) which are designed to help borrowers with lower credit scores and small down payments.

“A report like this, which is not only deeply flawed but clearly biased in its premise, harms the problem at hand as it distorts the issues and solutions needed to address the very serious issues that lead to uneven property outcomes.” and the wealth of blacks. building. “

Source: MBA

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