Racial Segregation in Mortgage Lending in Newport Beach

The city of Newport Beach, California has been deemed to experience a previous pattern of minority growth within ongoing racial diversity, and its community. But, there has been possible implications to both positive racial/ethnic diversity, and negative social development with regards to housing loans and impediments within specific fair housing opportunities. This depiction can be attempted to be seen with research, over periods of time, about relevant various racial groups within the area, migration patterns or areas of condensed racial groups as well as segregation either by choice or from a lack of adequate income, resources or availability of a completed/approved loan application.

Within the City of Newport Beach, we can see there is a discrepancy with regards to loan outcomes and various racial/ethnic groups. The Census tract lists denial rates of sale loans (for homes within Orange County), which completed application for loans by race, countywide, were given notable low approval, and high denial rates for racial groups other than non-Hispanic/Latino White. Loan Applications with regards to Race that had been completed home buy were checked/analyzed by race in Orange County, and compared countywide by its approval/denial for the 2008-2013 (the relevant data we have collected from the City of Mission Viejo Government sources). (Please refer to tables 4-5). Here are the loans that had gone through the entire underwriting cycle, which had ended up leading to attaining a loan or being denied. Since around 2008, the White population had a consistent share of home applications (for loans) at around 48 percent. Black/African American figures have diminished by about half, from 1.2 percent to 0.6 (from 2008 to 2013). Asian share of completed loan applications has increased from 23 to 28 percent (time frame again of 2008 to 2013). Hispanics/Latinos but, have been hit the hardest with regards to loan applications. Going from being 16 percent approval in 2008, to now only approx. 10 percent in 2013. This is even included in more Hispanic/Latino dominant (such as Anaheim, Garden Grove, and Santa Ana).

When an ethnic/racial group is over/underrepresented in the applicant pool, it could be a sign of unequal access to housing opportunities. Such a possible sign that access to mortgage lending is unfair or unequal for all individuals. All racial/ethnic categories have seen a decline in loan denial rates since the peak of the financial crisis in 2008. The following provides a summary of completed buy loan applications by race compared to the composition of the 16 cities in the study area and County, is summarized below: In Newport Beach, for example, Whites made up 82 percent of the population, yet in 2013, only 63 percent of the loans in Newport Beach were to Whites.

This is also while Blacks/African American make up 1.5 percent of Orange County, and only 0.6 percent of the loan applications were completed by Blacks. More analysis was completed on loans denied by race/ethnicity. Loan denials at the Census Tract level by minority percentage were also analyzed. Appendix C-2 shows the details, listing all Census Tracts and figures. In general, , the lower the percentage of minority residents within a Census Tract, lower the denial rate. Identified Impediments: The Sub-Regional AI identified the following impediments to fair housing choice in the four cities: Areas of racial/ethnic concentrations in each City state that residential patterns are evident; yet,they do not state the reasons behind the patterns.

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