New Report: CA Latino Home Purchase Lending

Mapping Access and Exclusion: Latino Home Purchase Lending Across California's Major Metropolitan Markets, 2018-2024

Los Angeles, CA — A comprehensive new report released today by LatinoProsperity reveals a troubling "bifurcation" in California’s housing market. While overall lending has fluctuated, the share of home purchase loans to Latino borrowers in California has shown steady progress, increasing from 25.2% in 2018 to 31.0% in 2024. Despite this nearly six-point gain, traditional banks have largely retreated from serving this demographic, leaving nonbank lenders to carry the overwhelming majority of the market.

The report, titled “Mapping Access and Exclusion: Latino Home Purchase Lending Across California’s Major Metropolitan Markets, 2018–2024,” analyzes Home Mortgage Disclosure Act (HMDA) data to highlight systemic barriers preventing Latino families from accessing the state’s primary engine for wealth building: homeownership.

The Bank-NonBank Divide

The data shows that traditional banks are significantly underperforming relative to the state’s population and the growing Latino market share:

• Progress in Lending Share: The Latino share of home purchase lending rose steadily from 27.5% in 2022 to 29.8% in 2023, reaching 31.0% in 2024.
• Persistent Demographic Gap: Despite this growth, the 31.0% share still lags behind the 37.7% Latino share of California's adult population.
• Minimal Bank Participation: Only six of California’s top 25 home purchase lenders are traditional banks.
• Stark Disparity in Access: Nonbank lenders serve Latino borrowers at more than 2.5 times the rate of traditional banks. Nonbanks accounted for 91.1% of all Latino borrowers served by the top 25 institutions.
• Bank Performance Lags: Latino borrowers received only 11.4% of loans originated by traditional banks—less than half of the overall 26.5% Latino share among the top 25 lenders.

"Homeownership remains the most effective pathway to building wealth for Latino families, yet our largest financial institutions are effectively absent from the communities driving California’s growth," said Orson Aguilar, President and CEO of LatinoProsperity. 

The analysis of the top 25 lenders reveals a massive gulf between traditional banks and specialized nonbank companies:

• Banking Sector Lows: Citibank (5.3%) and Wells Fargo Bank (6.8%) posted the lowest Latino lending shares among the major banks, with Citibank serving Latinos at just one-fifth of the overall top-25 rate.
• Relative Bank Leaders: JPMorgan Chase leads the traditional banking sector with a 20.7% Latino share, outperforming established legacy banks such as Bank of America (11.5%) and U.S. Bank (10.5%).
• Nonbank High Performers: Golden Empire Mortgage achieved the highest Latino share in the top 25 at 61.0%, while DHI Mortgage and OCMB both exceeded 50%.
• Market Volume Leader: United Shore Financial Services is the largest overall lender and a leader in access, originating 10,111 loans to Latino borrowers for a 32.8% share.

The report examines six major California markets, revealing that geography often dictates access:

• The Inland Empire & Fresno: These regions are the "epicenters" of Latino homeownership, with Latino lending shares of 38.6% and 38.7%, respectively. However, Fresno represents a "near-complete market withdrawal" by banks, with traditional banks comprising only two of the area's top 25 lenders.
• The Bay Area presents the starkest example of "prosperity without inclusion," where Latino buyers receive just 8.6% of loans despite the region’s economic strength.
• Los Angeles: Home to the state's largest concentration of Latino households, the region saw Latinos receive only 19% of home purchase loans from the top lenders.

LatinoProsperity warns that continued reliance on nonbank lenders, without parallel improvements in pricing transparency and long-term stability, could fail to address the nine-to-one wealth gap between White and Latino households in California.

The report calls for:

1. Strengthening Community Reinvestment Act (CRA) obligations for large banks in high-cost, low-access markets.
2. Creating regulatory incentives for banks to re-enter the mortgage market.
3. Expanding down payment assistance and supporting inclusive zoning to increase the supply of attainable homes.
4. Leadership in Sustainable Homeownership Practices for Nonbanks: Nonbank lenders must move beyond simple loan origination by investing in homeownership sustainability programs, including financial counseling and default-prevention services. They must also establish deep, sustained partnerships with Latino-serving nonprofits to ensure borrowers can maintain and build equity over time.

"Latinas are doing everything right: working, caregiving, earning degrees, and starting businesses; yet systemic inequities continue to block wealth-building opportunities,” said Orson Aguilar, President & CEO of LatinoProsperity. “This report is a call to action to our leaders that action needs to be taken to unlock Latinas’ full potential as drivers of America’s economic future."

Key Findings:

• Pay Inequities That Won't Close: Latinas earn 27% less than White women, even after accounting for education and experience. With focused efforts, the wage gap will take more than 60 years to close.
• Entrepreneurship is Soaring, but Funding is Not: Latina-owned employer businesses surged 82% in just five years, now generating $120 billion annually and employing nearly 900,000 workers. Yet, they receive less than 1% of venture capital dollars.
• Housing and Asset gaps: Only 49% of Latino households own their homes, compared to 65% of U.S. households. Latino homeowners overall hold 28 times more w ealth than Latino renters, underscoring both the critical role—and fragile foundation—of homeownership.
• Retirement and Investment Shortfalls: Latinas report an average of just $1,345 in retirement income and $700 in investment income annually—far below that of White women, at $4,411 and $3,171, respectively.
• Debt Delaying Life Milestones: Over one-third (36%) of Latinas reported delaying buying a home or pursuing education due to debt burdens. 
• Educational Gains, Unequal Returns: More than 3.5 million Latinas hold bachelor’s degrees or higher—triple the number since 2000. Still, only 20% of Latinas have a degree compared to 38% of White women. Even with graduate degrees, Latinas earn less than equally educated peers. 
• Citizenship Status Widens Gaps: Naturalized Latinas earn 38% more than their U.S.-born Latina peers, while those without citizenship earn 67% less—underscoring how legal status drives income inequality and limits wealth-building opportunities.
• Financial First Responders: Latinas disproportionately shoulder family emergencies, draining savings and stalling wealth-building. Just 35% have emergency savings, compared to more than half of White women. 
• A Broader Vision of Wealth: In interviews and six national roundtables, Latinas defined wealth not only as assets but also as stability, health, peace of mind, and the ability to support family with dignity.

"When a community that fuels the state's growth holds only a tenth of White household wealth, that's not just a gap - it's a statewide risk. We need bold, targeted policies to expand homeownership, unlock fair capital for entrepreneurs, and ensure quality jobs with retirement benefits." Orson Aguilar, President and CEO, LatinoProsperity

Key Findings:

• Wealth: Median Latino household wealth in California is $52,700 versus $474,800 for White households - a ratio of about 1:9 (11% parity), more than twice as wide as the national Latino-White gap.
• Income: Median Latino household income is $99,600 versus $136,000 for White households (27% gap), with disparities widening at higher income levels.
• Homeownership: Just 46% of Latino households own their homes compared to 66% of White households. Latino wealth is heavily concentrated in home equity, leaving families vulnerable to shocks, higher costs, and climate risks.
• Entrepreneurship: Latino-owned employer firms grew 38% from 2018-2023, yet face higher loan denial rates and smaller, costlier financing. Closing the Latino business revenue gap could add $268 billion to California's economy annually.
• Retirement & Financial Markets: Only 38% of Latino households participate in retirement plans, compared with 60% of White households, limiting long-term asset growth and resilience.

“Our research shows that Latinos are enthusiastic adopters of digital financial tools,” said Orson Aguilar.  “But if these technologies aren’t designed with our lived experiences in mind, they risk repeating the same injustices we’ve long faced. We need innovation that listens to and learns from our communities.”

Key findings in the report highlight both opportunities and risks in the fintech sector:

• Latinos are adopting mobile banking, buy-now-pay-later tools, and alternative credit products at higher rates than other groups.
• 56% of Latinos report using alternative financial services such as earned wage access (EWA) and buy-now-pay-later (BNPL) tools, often to manage everyday expenses.
• A lack of transparency, poor customer service, and the layering of multiple financial products—often with unclear terms or hidden fees—can add financial strain to households already struggling to make ends meet. Click below to read the full report.