Fair Lending Analysis
Identify and overcome tradeoffs between performance and disparity.
The State of U.S. Mortgage Fairness:
A FairPlayTM Report
A comprehensive study of more than 350 million mortgage applications from 1990 to 2021.
Download FairPlay’s Mortgage Fairness Monitor
Get 5 Fact Sheets highlighting the state of mortgage fairness for Female, Black, Hispanic, Millennial, and Baby Boomer applicants.
Mortgage Fairness for Black Homebuyers in 2020
Nationally, Black homebuyers were approved at 78% the rate of White homebuyers.
Mortgage Fairness for Hispanic Homebuyers in 2020
Nationally, Hispanic homebuyers were approved at 87% the rate of White homebuyers.
Mortgage Fairness for Female Homebuyers in 2020
Nationally, Female homebuyers were approved at 98% the rate of White homebuyers.
Mortgage Fairness for Baby Boomer Homebuyers in 2020
Nationally, Baby Boomers had a slightly lower approval rate relative to Gen X homebuyers.
Mortgage Fairness for Millennial Homebuyers in 2020
Nationally, Millennial homebuyers had the same approval rate as Gen X homebuyers.
Black Homebuyers
Mortgage Fairness for Black Homebuyers in 2020
Nationally, Black homebuyers were approved at 78% the rate of White homebuyers.
Hispanic Homebuyers
Mortgage Fairness for Hispanic Homebuyers in 2020
Nationally, Hispanic homebuyers were approved at 87% the rate of White homebuyers.
Female Homebuyers
Mortgage Fairness for Female Homebuyers in 2020
Nationally, Female homebuyers were approved at 98% the rate of White homebuyers.
Baby Boomer Homebuyers
Mortgage Fairness for Baby Boomer Homebuyers in 2020
Nationally, Baby Boomers had a slightly lower approval rate relative to Gen X homebuyers.
Millienial Homebuyers
Mortgage Fairness for Millennial Homebuyers in 2020
Nationally, Millennial homebuyers had the same approval rate as Gen X homebuyers.
Mortgage Fairness Methodology
To compile these maps, FairPlayTM analyzed publicly available data for 2020 from the Home Mortgage Disclosure Act Database. We limited our review to applicants seeking to buy a new home, rather than applicants seeking to refinance or obtain a line of credit. Then we computed the Adverse Impact Ratio (AIR) for every county in the U.S. We also computed AIR values for 20 major metropolitan areas.
AIR is a measure of demographic parity; it does not control for risk.
Calculating the Adverse Impact Ratio
Adverse Impact Ratio is a calculation that regulators and courts use as a means of determining whether members of a protected class receive a certain outcome, such as getting approved for a loan, as often as a control group, such as white male borrowers, does.
Here is how AIR is calculated:
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