Fifty-seven years ago, the Fair Housing Act became law. A cornerstone of the Civil Rights Act of 1968, it outlawed housing discrimination based on race, religion, and national origin. Over the decades, its protections expanded to include sex, disability, and families with children. But even after all this time, access to homeownership still isn’t equal across the board.
Fair Housing Month is a moment to reflect, yes - but also a prompt to act.
Expanding access to credit can be a smart business move when done thoughtfully. It opens doors to new customers, builds loyalty, and drives growth by tapping into underserved markets. Lenders have been looking for ways to balance risk with opportunity through careful assessment and innovative approaches. This kind of exploration allows lenders to create value for both themselves and the communities they serve.
The Mortgage Opportunity is Bigger Than You Think
There are plenty of mortgage-ready borrowers out there who aren’t being reached, and even more who could be ready with the right support. Read more how data makes a difference in sizing the mortgage lending opportunity and understanding it: https://www.polygonresearch.com/blog/fair-housing-month-2025-still-the-right-thing-still-smart-business.
Insight that Moves the Needle
Expanding access doesn't mean lowering standards. It means recognizing that financial readiness, access to information, and trust in institutions vary across communities, and leveraging these insights to shape your strategy. This transforms volume-driven goals into smarter, more inclusive growth that accurately reflects your market's composition.
Consider this practical example: If you were lending in the Charlotte MSA and analyzed the 2024 HMDA LAR data with HMDAVision, you'd discover that 27.1% of home purchase applications from Hispanic borrowers were declined due to DTI constraints, which is notably higher than the national average. How can you strategically apply this insight?
You might:
--> Launch proactive homebuyer campaigns that engage potential borrowers before they shop. Include targeted budgeting tools, credit improvement resources, and Spanish-language materials that address specific affordability challenges.
--> Develop strategic partnerships with Realtors who serve Hispanic homebuyers. Equip these professionals with your DTI-focused resources, positioning your credit union as the solution before borrowers (buyers) experience rejection elsewhere.
--> Highlight specialized purchase loan programs with flexible DTI requirements. Focus your outreach on FHA, USDA, or community lending options specifically designed for first-time or moderate-income buyers that accommodate higher debt ratios.
If this post got you thinking, there’s more where that came from. For example, read about using HMDA data to understand borrowers better: https://www.polygonresearch.com/blog/what-is-hmda---know-your-customer. Explore how data reveals new insights on access, opportunity, and impact, especially in your field of membership.
The Fair Housing Act was a starting point, not a finish line.