Mortgage lenders rejected 9 percent of loan applications in recent years from Greater Hartford borrowers, which is the nation’s 10th worst denial rate, according to a recent study.
The study by national lending exchange marketplace Lending Tree said lenders denied mortgage shoppers in Hartford, West Hartford and East Hartford at a high rate mainly due to insufficient debt-to-income ratios and collateral.
Hartford’s would-be borrowers ranked second in the nation for cities where collateral issues resulted in their mortgage denial, which amounts to 24 percent of its denials.
The study evaluated data from more than 10 million mortgage applications in 2016 and 2017 to learn why mortgage applicants are rejected and to see if location plays a role.
Nationally, almost one in 10 borrowers get denied for mortgages and 8 percent of loan applications are denied. The leading reasons for denial were credit history and debt-to-income ratio as both resulted in 26 percent of denials.
Collateral issues and incomplete applications tallied 17 and 14 percent, respectively.
The highest rates of loan denials were cities in Alabama, which posted a 13 percent denial rate, and Louisiana, Tennessee, Missouri and Arkansas totaling 12 percent. The lowest mortgage denial rate of 5 percent included cities in Wisconsin, Minnesota and Utah.
