CFPB reports on AAPI subgroups in the mortgage market
On July 1, the CFPB released a report that analyzed 2020 HMDA loan data and examined the differences in mortgage characteristics across Asian American and Pacific Islander (AAPI) subgroups. The report examined various outcomes for the subgroups, including costs of borrowing, denial rates, and credit characteristics. According to the report, “out of 18.8 million applications with race and ethnicity information, 8 percent (1.6 million) were submitted by AAPI consumers.” The CFPB generally found that borrowers who identified in the Asian Indian or Chinese subgroups paid lower interest rates than non-Hispanic White borrowers, and noted variations within the Hawaiian or Pacific Islanders group, which paid higher interest rates and loan costs than Asian borrowers. The report noted that Chinese and Asian Indian borrowers had higher average credit scores and incomes and lower combined-loan-to-value ratios than those of non-Hispanic White borrowers, but their denial rates were greater. The report provides additional analysis of data and compares various outcomes and loan characteristics within the AAPI subgroups and against those of Black, Hispanic White, and non-Hispanic White borrowers.