Discrimination and inequalities persist
The mortgage approval process refers to the steps related to securing a home mortgage. Estimates report that nearly two-thirds of a typical American household’s wealth comes from homeownership, making it crucial for prosperity.1
Lending is central to homeownership in the U.S., and the market is projected to grow. Fannie Mae, the government-sponsored entity that guarantees mortgages through a secondary mortgage market, estimates that home sales and purchase mortgage originations will rise by 6.2% and 14.5%, respectively, in 2021.2
Historically, homeownership has been influenced by racial, ethnic, and other prejudices. Even in the areas where it has improved, recent studies have characterized the reduction of racial inequality in housing generally as “slow, uneven, and fragile.”3
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