The Lingering Storm: Mortgage Lending Disparities on Long Island

Empire Justice September 18, 2015

The Lingering Storm: Mortgage Lending Disparities on Long Island examines mortgage lending, denial rates and denial disparities in 2013 to evaluate the recovery of Long Island communities in terms of access to mortgage credit and the greater American Dream. In an effort to combat our nation’s discriminatory housing policies, we offer several recommendations for policy makers at all levels of government.

Empire Justice Center’s newest report, “The Lingering Storm: Mortgage Lending Disparities on Long Island,” is a snapshot of mortgage lending in 2013, exploring the recovery of Long Island communities and their access to mortgage credit and, by extension, access to the American Dream of homeownership.

Some of the report’s specific recommendations include:

  • Increase funding to HUD-approved housing counselors to increase the number of consumers financially ready and able to qualify for, and maintain, prime-rate loans.
  • Modernize the Community Reinvestment Act (CRA) to specifically obligate covered institutions to serve people and communities of color, especially African American, Latino, and recent immigrant people and communities.
  • Use alternative credit scoring models to increase the chance that applicants with “thin files”—limited credit histories or not enough credit accounts—will be approved for loans.
  • Create a state Community Restoration Fund (CRF) or similar model for the flexible acquisition and disposition of distressed mortgages and foreclosed or vacant properties to get homes back on the market for purchase by home buyers.

Download the report

View the press release

Read our local, state, and federal recommendations based on the analysis in the report

CLICK HERE to read The New York Times article on the National Fair Housing Alliance’s investigations into housing discrimination entitled “How Segregation Destroys Black Wealth.”

Media: “Counseling, new rules could widen home ownership, study says” (Newsday, 9/18/2015)

Media: “Report: Bank policies worsen foreclosure crisis in areas” (News 12 Long Island, 9/18/2015)


Related Coverage

Affording the American dream of homeownership (Democrat & Chronicle)

Income doesn’t have to stop home buy
 (Democrat & Chronicle)