Latino Home Purchase Lending Gap Persists Across California

A new report from LatinoProsperity, a national nonprofit dedicated to closing the Latino wealth gap through advocacy, found persistent disparities in home purchase lending to Latino borrowers across California. The group said traditional banks lag far behind nonbank lenders in serving the state’s largest demographic group.

The report, “Mapping Access and Exclusion: Latino Home Purchase Lending Across California’s Major Metropolitan Markets, 2018–2024,” analyzes Home Mortgage Disclosure Act (HMDA) data. It concluded that while Latinos make up 37.7% of California’s adult population, they only received 31% of home purchase loans in 2024.

Although that gap has narrowed in recent years, the organization said it remains significant.

Among California’s top 25 lenders, the six largest banks directed 11.4% of their home purchase loans to Latino borrowers, compared with 30.5% among nonbank lenders, according to the report.

“Latino families are driving homeownership demand across California, yet the data make clear that major banks have largely turned their backs on this community,” Orson Aguilar, president and CEO of LatinoProsperity, said in a statement. “This is not just a lending imbalance. It is a structural threat to Latino wealth building and intergenerational mobility.”

The report found wide variation among major banks.

Citibank posted the lowest Latino lending rate at 5.3%, followed by Wells Fargo at 6.8% — less than one-quarter of the nonbank average. JPMorgan Chase led the banks analyzed, with 21% of its home purchase loans going to Latino borrowers.

Regional disparities were also pronounced. In the San Francisco Bay Area, Latino borrowers received 8.6% of home purchase loans. Traditional banks in that market served Latino borrowers at a 4.7% rate, compared with 13.7% among nonbank lenders.

By contrast, the Inland Empire and Fresno posted the strongest Latino lending rates, at 38.6% and 38.7%, respectively. Even in these more affordable markets, however, the report said traditional banks had a limited presence.

In Los Angeles, home to the largest concentration of Latino households in the state, Latino borrowers received 19% of loans from the top 25 lenders.

The report calls on banks to reestablish a stronger presence in Latino-majority neighborhoods and to set publicly measurable goals to increase Latino home purchase lending. It also urges state and federal policymakers to strengthen Community Reinvestment Act (CRA) obligations and accelerate home construction.