1,018 of 1,400 raw lender flags do not survive a small-sample correction
1,018 of 1,400 raw lender flags do not survive a small-sample correction
Lenders flagged for the Black vs. White denial-rate gap, all years pooled
382still on the watch list
1,018drop out after the correction
How to read this: the whole bar is every lender the raw four-fifths screen flags. A lender with a handful of applications can fail it by luck, so the correction pulls small lenders toward the typical gap.
Note: The typical Black vs. White denial-rate gap is 9.8 points, and it varies by about 5.9 points from lender to lender. With a 100-application floor the raw screen flags 368; the full watch list has 404 lenders, 97 of them missed by that screen. A flag is a prompt for review, not a finding.
Source: public HMDA filings, 2023 to 2025. hmda-audit analysis.