Housing recovery hampered by lending
An analysis published by the Wall Street Journal showed that the nation’s 10 largest mortgage lenders denied 26.8% of loan applications in 2010, an increase from 23.5% in 2009.
The mortgage data analyzed, which was obtained from banking regulators, included refinance requests as well as new-home loans. Among home purchase applicants, lenders denied 19.9%, up from 18.2% in 2009. The refi applications were denied 27.2% of the time, compared with 24.4% the previous year.
The Wall State Journal was able to obtain the data as the result of the Home Mortgage Disclosure Act, which requires lenders to disclose these figures. The top 10 lenders accounted for 70% of loan originations last year, although many were obtained after smaller firms approved the loans.
The analysis showed that denials increased in every state except Delaware. They were highest in Miami, Detroit and New Orleans and lowest in Raleigh, N.C.; Bethesda, Md.; and San Jose, Calif.