The significance of race in mortgage lending has emerged as a major public policy issue and focus of scholarly research in the United States. In this paper the experiences of black and Latino mortgage loan applicants in a large midwestern metropolitan area are examined by means of a database on the disposition of individual mortgage loan applications that is now available. It is found that, after controlling for income, age of housing, housing value, and occupancy status, black applicants and applicants from predominantly black communities are less likely to have their loan applications approved than are white applicants or applicants from predominantly white areas. Although no disparities were associated with Latino applicants, those applicants from predominantly Latino communities were less likely to be approved than were others. Specific research and policy recommendations are offered to develop a further understanding of the racial implications of the mortgage market and for reducing racial disparities in accessing credit for home purchases.
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