Same-Sex Partners 73 percent Discriminated Against by Mortgage Lenders - LGBT Study Iowa State University - OutBuro - Gay Lesbian Business News Professional Netowrk Information

Same-Sex Partners 73% Discriminated Against by Mortgage Lenders

Purchasing a home is a significant life event for most. The process is both exciting and stressful To add to that stress a new study suggests home mortgage lenders are less likely to approve gay and lesbian same-sex couples.

Same-sex borrowers may perform better – Gao

The study, by researchers at Iowa State University’s Ive’s
Ivy College of Business, focused on national mortgage data from 1990 to 2015 and found the approval rate for same-sex couples was 3 to 8 percent lower. The research also included more detail dive about applicants’ work history and creditworthiness analyzed from a smaller dataset. Based on this data, same-sex applicants were 73 percent more likely to be denied than heterosexual couples.

Hua Sun portrait

Hua Sun

Gay and lesbian same-gender couples who were approved paid higher interest and fees. Co-authors Hua Sun (pictured right) and Lei Gao (pictured in featured image), associate and assistant professors of finance, respectively, say the difference in finance fees averaged less than .5 %, but combined added up as much as $86 million annually.

Another research study published by the Proceedings of the National Academy of Sciences, found no evidence that gay and lesbian couples had a higher risk of mortgage default.

“Lenders can justify higher fees, if there is greater risk,” Gao said. “We found nothing to indicate that’s the case. In fact, our findings weakly suggest same-sex borrowers may perform better.”

Protection needed

While mortgage applicants are not required to disclose their sexual orientation, however when two women or two men walk in for a home loan through information causally shared while the couple is just being themselves can lead to discrimination. As indicated in another study by the University of Surrey, indicating that during an employment hiring process, LGBT people are discriminated against based solely on their appearance and/or speech. The Surrey study found that person who may or may not be LGBT but are preceived as being so are less likely to be hired, promoted and paid less than their heterosexual counterparts. This perception is just as damaging in terms of discrimination in the mortgage lending process the researchers say.

Check out this related study by Prudential on the financial health of American by gender, race and sexual orientation.

Sun and Gao say the findings of their Mortgage Lending study illustrate a need for change to make the lending laws fair for everyone. Loan decisions should be not be based on, not skin color, sexual orientation or gender. Lending should be based only on fundamental economic factors. Sun says making sexual orientation a protected class would limit potential discrimination.

The Fair Housing and Equal Credit Opportunity acts prohibit discrimination based on a borrower’s race, gender, marital status or religion, however, neither specifically, list sexual orientation.S

“Policymakers need to guarantee same-sex couples have equal access to credit,” Sun said. “Using our framework, credit monitoring agencies also can take steps to investigate unfair lending practices.”

Mortgage lenders though can move ahead of government and as a business ensure their company polices include being open, welcoming and fair to the LGBT community in their lending practices.

Sun and Gao used data from the Home Mortgage Disclosure Act, the Federal Reserve Bank of Boston and Fannie Mae Loan Performance to test whether perceived sexual orientation affected mortgage approval, cost and performance. Utilizing these datasets allowed researchers to validate their findings and control for factors such as income, variations in lenders’ underwriting standards and property type, which may influence approval rates.

Co-applicants with the same gender were identified as same-sex couples for the study. The researchers used Gallup and Census Bureau data of geographic distributions of LGBT adults to verify their identification strategy and reported a good matching quality.

Location, location, location

Previous research has shown that recent home purchases or refinancing in a neighborhood can predict defaults, which influences mortgage lending approval and interest rates. To determine if the percentage of LGBT individuals living in a neighborhood contributed to the disparity in approval rates, Sun and Gao looked at county-level percentages of same-sex applicants each year.

What they found was somewhat surprising. In neighborhoods with more same-sex couples, both same-sex and different-sex borrowers seem to experience more unfavorable lending outcomes overall. The researchers say the findings should raise enough concern to warrant further investigation.

Study Occurrences of LGBT Workplace Discrimination Cases in the USA - LGBT Employees Rate Employer Review Company Employee Branding OutBuro - Corporate Workplace Equality Gay Lesbian Queer Diversity Inclusion

Study: Occurrences of LGBT Workplace Discrimination Cases in the USA

In 2017, reversing prior Department of Justice policy, the Trump administration proclaimed employment discrimination protections do not extend to lesbian, gay, bisexual, transgender and queer (LGBTQ) individuals in the workplace. At the same time, several lawsuits alleging employment discrimination on the basis of sexual orientation are winding their way through the federal court system with mixed results based on this uncertainty.  These legal disputes will continue to play out nationally as the current cases proceed as new cases are brought forth.

To examine this further, statistics from the U.S. Equal Employment Opportunity Commission provides insights into complaints related to gender identity and sexual orientation in recent years. It demonstrates how LGBTQ people are increasingly willing to step forward and make formal legal complaints, the increase in frequency they happen along with their success rate at winning their discrimination cases.

Taking a look first at geographical patterns of EEOC charges citing sexual orientation or gender identity the regional differences are easily apparent, with a heavy concentration in the Southern states. Georgia and Mississippi was near the top of the list, with roughly four charges per 100,000 residents each.  Based on those states current policy records on LGBTQ issues it’s not surprising.  These states lag far behind the rest of the country in terms of legal protections for gay. lesbian, bisexual,  transgender, queer people.

What was a bit of a surprise is that Washington, D.C., had the most complaints related to gender identity and sexual orientation per capita, even though it has a long history of activism by LGBTQ community in the nation’s capital.

From 2014 to 2017, legal charges of discrimination on the basis of sexual orientation were significantly more common than allegations of gender identity discrimination. Thatis is not surprising and seems to reflect the relative size of the respective communities. While estimates of the transgender population vary, a greater number of people identify as gay, lesbian, or bisexual. In a small portion of cases (roughly 3%) complainants alleged both sexual orientation and gender identity discrimination together.

Check out these additional resource articles:

Cumulatively, LGBTQ-related discrimination complaints increased substantially between 2014 and 2015 and continued to rise between 2015 and 2016. In 2017, however, complaints declined slightly from 2016. That statistic provides an interesting counternarrative to research suggesting a surge in anti-LGBTQ sentiment among heterosexual people in 2017. But this decline could also be attributable to hesitation on the part of the LGBTQ community to file complaints with the EEOC, given the uncertainty of protections under the Trump administration and the media attention anti-LGBT action receives.

Equality: A Work in Progress

This study suggests hundreds of thousands of people encounter workplace discrimination each year on the basis of sexual orientation and gender identity. Although discrimination is clearly unacceptable in any professional setting, the volume of these charges may indicate LGBTQ empowerment. Rather than suffering in silence, LGBTQ employees are making use of a valuable legal resource to claim their rights for equality. Although discrimination remains an unfortunate part of America’s employment landscape, we should celebrate those with the courage to combat it.

One way to combat discrimination even if you as an employee don’t feel comfortable making is making it publically known by joining OutBüro for free, then adding the company to the directory and rating it anonymously.  Your feedback will be helpful to the company and to countless future prospective LGBT job seekers considering working there.  See this article for more information: Be a Superhero – Your Voice has the Power to Create Change

The research calls for employers to break the culture of silence that surrounds discrimination and harassment.  Check out the below article for more information:

Are you aware of an LGBT owned business or community non-profit we should inform our readers about?  Contact us with an LGBT owned business lead or news tip.

OutBuro where you belong lgbtq entrprenuers out gay business owers lesbian startups queer professionals employer ratings customer reviews bisexual transgender equality community 1
OutBuro - 10 LGBTQ Corporate Equality Ratings Employer Reviews Monitoring Workplace Diversity Inclusion Recruitment Marketing Branding LGBT Professionals Entrepreneurs Community

New Study Suggest LGBTQ People in Management Great for Business

Wisconsin LGBT Chamber of Commerce - OutBuro LGBT Business News Employee Company GLBT Gay Professional Networking Lesbian Bisexual Transgender Queer communitynew study by the Wisconsin LGBT Chamber of Commerce suggests that businesses with an LGBT person in a top management position do better than those that don’t according to New Now Next.

Dr. Jennica Webster helped design and facilitate the survey in which she polled 88 Wisconsin companies in the Chamber of Commerce. The results showed that LGBT people in leadership positions  actually did better in “organizational performance, social and environmental corporate social responsibility, workforce quality, and utilization, as well as high-performance human resource management practices.”

“This study supports what we have been saying for years—having LGBT people in leadership positions, whether it as a CEO, a business owner, a part of senior management or on the board of directors, is good for a business’s bottom line,” said Jason Rae, chamber president and CEO and one of the report’s authors. “Simply put, diversity is good for business.”

Added Rae, “Overall, organizations with one or more LGBT people in senior leadership positions perform better than other organizations. This study helps reinforce our commitment to helping ‘break the rainbow ceiling’ and get more LGBT people in senior leadership roles. When LGBT people are present in leadership roles, businesses do better.”

In conclusion, the report found “LGBT people hold important senior leadership positions within the sample of Wisconsin LGBT Chamber member organizations that responded to the survey.”

“Another conclusion is that among the organizations in this sample those that report having one or more LGBT people in senior leadership positions also report a variety of favorable outcomes compared to organizations with no LGBT people in senior leadership positions including levels of organizational performance, social and environmental corporate social responsibility, workforce quality and utilization, as well as high performance human resource management practices.

No differences were found between respondents with one or more LGBT people in senior leadership positions and those without LGBT people in senior leadership positions in terms of the number of LGBT supportive workplace policies and practices. We speculate that this non-significant difference with regard to policies may be a function of organizational size. That is, larger organizations typically have more formalized policies and practices overall including those aimed at supporting LGBT workers.”

OutBuro where you belong lgbtq entrprenuers out gay business owers lesbian startups queer professionals employer ratings customer reviews bisexual transgender equality community 1