Redlining in a majority Black City? Mortgage lending and the racial composition of Detroit neighborhoods

This article examines the effects of population and housing characteristics on mortgage lending patterns in the City of Detroit, MI. Data from 2000 HMDA aggregate reports and the 2000 U.S. Census are analyzed using multiple regression and stepwise regression. The results from this analysis indicate that after controlling for other population and housing characteristics, the proportion of African American residents in a neighborhood is significantly correlated with a drop-off in mortgage lending activity. In light of these findings, recommendations are made to expand community reinvestment legislation, and assist community development professionals and grassroots activists in addressing lending disparities based on race.