Homeownership is thought of as one of the most important factors for wealth accumulation and intergenerational transfer in the United States. Numerous historical factors have contributed to the racial wealth gap such as discrimination, redlining, and biases in lending criteria. Black women in Mississippi, who are dually affected by the racial and gender income gap, face higher poverty rates and lower homeownership rates compared to their white counterparts. This contributes to Black women having low levels of wealth accumulation. Despite federal and state policies meant to eliminate or reduce the effects of historical, social, and economic barriers that cause the racial wealth gap, Black women continue to struggle to attain wealth through homeownership.

Using data from the US Federal Reserve’s Home Mortgage Disclosure Act database, this study employs a mixed-methods comparative, longitudinal design to examine possible relationships between income, wealth, and home mortgage approval for Black women compared to white individuals in Mississippi. We find that the race of an applicant tends to be a significant factor in determining whether a home mortgage is approved or denied. In the years our study analyzes, Black women had lower home mortgage approval rates, higher home mortgage denied rates, and lower median income values compared to white women. The study also finds that across both Black and white races, there is a strong correlation between median income and approval/denial rates. This suggests that increasing individuals’ incomes and net worth is important for improving Black women’s homeownership rates and closing the wealth gap.

The paper also looks at current federal and state policies that could be used to improve Black women in Mississippi’s opportunities to obtain a home mortgage, build their net worth, and close the racial and gender wealth gap. The authors find that federal policies and laws use more direct language to talk about eliminating discrimination and have a stronger enforcement component compared to Mississippi’s. Additionally, while Mississippi’s policies and laws provide a basic level of protection for consumers, those reviewed tend to focus more on establishing a regulatory framework for financial industries.

Increasing home mortgage approval rates for Black women in Mississippi is vital to increasing Black women’s wealth accumulation and closing the wealth gap. Based on their findings, the paper suggests various ways policymakers could promote homeownership among Black women including (1) incentivizing lenders to consider other financial indicators and sources of income as part of the home mortgage loan approval process, (2) increasing transparency about home mortgage approval criteria and lending requirements, (3) establishing or increasing legal penalties for discrimination and inequality in lending practices and enforcing these penalties, and (4) increasing funding for programs and subsidies that help prepare people to qualify for home mortgages.