Asian mortgages find high rate of approval.

Asians fare better than most minority groups when applying for a mortgage nationwide and surpassed whites for low denial rates in 13 of the 50 metropolitan statistical areas covered, according to 1993 HMDA data.

With a rejection rate of 14.46%, Asians trail the whites denial rate of 10.56% by only four percentage points. (See chart)

The difference between poor and affluent Asians doesnt seem to have any bearing on the rejection rates as seen from a FFIEC chart recording rejection rates by race. However, Asians earning less than 80% of their MSAs average income have a better chance of getting their mortgage approved than do whites in the same income category. Above this income level, whites have an easier time.

The National Association of Federal Credit Unions, in its third-annual meeting with the Federal Reserve Board of Governors Dec. 2, reported on NCUAs examination of CU loans to members. Nafcu said that on April 11 NCUA confirmed, based on its examination of 50 credit unions, that CUs have maintained the tradition of providing loans on a nondiscriminatory basis. Mortgage loans reviewed by the examiners appeared to be decided on nondiscrim-inatory credit criteria. Reasons for denial were adverse credit reports, high debt-to-income ratios, and insufficient equity in the collateral.

Two of the worst 10 cities for an Asians loan to be filed are in Louisiana: Alexandria and Houma-Thibo-daux, with a 50% and 41.67% rejection rate, respectively.

[TABULAR DATA OMITTED]

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER