A Report to the Race Relations Council of Southwestern Michigan
Author: Immergluck, Daniel and Wiles, Marti
Summary
The goal of this report is to examine one segment of community economic activity — home lending — in the Benton Harbor-St. Joseph area. We aim to identify potential disparities and develop ways to improve access to affordable mortgage credit for low- and moderate-income community residents, particularly those in Benton Harbor. This report identifies at least three possible areas of credit need: First, and most apparent, is the dominance of subprime refinance lending in Benton Harbor. Subprime lenders specialize in lending to borrowers with subpar credit histories. A second area of need suggested by this report is for home-improvement loans for low- and moderate-income homeowners in Benton Harbor. Finally, while the raw numbers are somewhat small, the large disparity in loan denial rates for home purchase loans between middle- and upper income African-American and white residents of the combined communities is troubling.
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An Analysis of Residential Lending Patterns in Benton Harbor and St. Joseph, Michigan
