Cheers to a wonderful week, ForbesBLK. Jabari here. There’s another red flag on the housing front, especially for Black America. A new report by the Financial Times alleges that major banks are rejecting mortgage applications from Black borrowers at higher rates than non-Black applicants. Banks named in the report include 21st Mortgage Corporation, Bank of America (BofA), JPMorgan Chase, United Wholesale Mortgage and Rocket Mortgage. The latter two companies are owned by NBA team owners and billionaires Mat Ishbia and Dan Gilbert. The FT reports it reviewed more than 39 million mortgage applications and applied a statistical model that calculated income, debt, loan size, and zip code. “The results,” the FT writes, “showed Black people were 2.1 times as likely to be denied a conventional mortgage for an owner-occupied home as white applicants; Latinos, 1.5 times; and Asians, 1.2 times.” “Every major lender,” the FT continues, “from BofA and JPMorgan to Rocket Mortgage and (LoanDepot), was more likely to reject Black applicants than white ones.” In the report, the banks deny wrongdoing. Some argue that other factors, like credit score, aren’t considered. And though the report strikes a nerve, it’s not much of a surprise. Back in February 2024, I received a refresher about the roadblocks to wealth via homeownership when I covered T.D. Jakes’ partnership with Wells Fargo. The FT report also surfaces just when mortgage interest rates are declining. The average rate on a 30-year fixed mortgage is roughly 6.5%. That’s down from above 7% over the last few months. Should rates further decrease, “trapped renters” could finally enter the housing market. Additionally, homeowners who financed above 7% could refinance. But it means little without a fair mortgage. On a panel at next month’s ForbesBLK Summit, we'll discuss this housing issue more with New Orleans-based Liberty Bank and Trust, the largest Black-owned bank in America. I wrote about Liberty Bank in February. Founded in 1972, the bank has over $1 billion in assets, says it’s well capitalized, and is looking to lend, especially to increase homeownership. Speaking of the summit, attendees may spot former NBA player Derek Anderson roaming through the crowd. Derek joined me on The Enterprise Zone at the Nasdaq. We talk about his business portfolio; 11-year NBA career, learnings from Michael Jordan, and why the purchase of more than 100 cars was a disaster, but fun. Drafted in the first round of the 1997 NBA Draft, Derek played 11 seasons and earned about $50 million in his career. He won an NBA championship in 2006 with the Miami Heat. I invited Derek to the summit as a guest, and he accepted the invitation. So, if you spot him in the audience, don’t be afraid to speak up. He’s constantly seeking a good business deal. My One Interesting Read: After various glitches, including a man ordering 18,000 cups of water, Taco Bell is rethinking its AI rollout at drive-throughs, writes the Wall Street Journal.
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