Tearing Down Barriers to Homeownership

The podcast Policy Research and Poverty spoke to UCLA Luskin’s José Loya about his research on how race, gender and age affect access to mortgage credit. “Homeownership is the largest vehicle for creating wealth,” said Loya, assistant professor of urban planning. “It’s not small businesses. It’s not owning stocks or bonds. It’s actually the purchasing of a house.” Yet multiple barriers prevent certain demographic groups from accessing mortgages and achieving the multigenerational security that homeownership represents, his research shows. These inequities affect not just individual families but entire neighborhoods — the presence of quality schools, public transit, government services and high-opportunity jobs. Programs that expand homeownership opportunities in lower-income neighborhoods are not just about owning a piece of real estate, Loya said. “I always joke around that it’s not really about having the right to paint the wall or move my fence or whatever. It’s really about the opportunities that that home provides for that family.”


 

Hurdles to Breaking Into the Housing Market

A Washington Post article on millennials saving up to buy a home by living rent-free with family or friends cited José Loya, assistant professor of urban planning at UCLA Luskin. Record-high rental prices, along with student loan debt, car payments, child-care costs and other expenses, have tapped the finances of many young adults. Breaking into the housing market is particularly difficult for Black and Latino homebuyers, who have applied for mortgages at declining rates since the start of the pandemic, said Loya, who researches housing inequality. Such groups are disproportionately affected by rising home prices because they tend to have lower incomes. “They’re getting squeezed out,” he said. Loya also reviewed a Futuro Investigates project that found that financial institutions in New Jersey rejected Latino mortgage applicants at higher rates than their white counterparts between 2018 and 2022. Latinos who did get mortgages, meanwhile, paid higher interest rates than white borrowers on comparable home loans.


 

Racial Disparities in Mortgage Approval Rates

José Loya of the UCLA Luskin Urban Planning faculty spoke to CNN about disparities discovered in the mortgage approval rates at the largest credit union in the nation. CNN reported that Navy Federal Credit Union approved more than 75% of the white borrowers who applied for a new conventional home purchase mortgage in 2022, but fewer than 50% of Black borrowers who applied for the same type of loan. This is the widest disparity in mortgage approval rates between white and Black borrowers of any major lender, the news organization concluded. The disparities are alarming, said Loya, who studies racial gaps in mortgage approvals and reviewed CNN’s analysis. “It does surprise me that they’re doing significantly worse than other big lenders” because of Navy Federal’s status as a credit union, he added.


 

Loya’s Research on Mortgage Disparities Bolstered by New LPPI Study

A new study released by the UCLA Latino Policy & Politics Institute finds that racial disparities persist in homeownership within Los Angeles County. The report, part of a larger research project led by UCLA Luskin Assistant Professor of Urban Planning José Loya, is based on an analysis of pre-pandemic data from the Home Mortgage Disclosure Act. It reveals that despite anti-discrimination laws and regulations, households of color continue to face significant barriers to accessing low-cost mortgage credit, hindering their path to homeownership and exacerbating a racial wealth gap. The report highlights the central role of homeownership in wealth creation in the United States and emphasizes how limited access impacts households of color. The report’s author is Miguel Miguel, an urban planning student who is among a group of first-generation Latino scholars at LPPI helping to provide a more nuanced understanding of the housing market and the COVID-19 pandemic’s effect on racial disparities. Loya recently received two awards from LPPI that will support continuing research efforts aimed at improving the well-being of the country’s Latino population. “Dr. Loya’s research is a salient reminder that homeownership is not an option for the majority of Latinos because our creditworthiness is not equally valued by financial markets,” said Silvia R. González, a director of research at LPPI.


 

Loya on Racial Disparities in Mortgage Approval Rates

Assistant Professor of Urban Planning José Loya spoke to Markup about new data regarding ethnic and racial disparities in mortgage approval rates. For years, the mortgage industry has said financial factors, such as credit score and debt as a percentage of income, explain any racial disparities in loan approval rates. However, Markup investigated more than 2 million mortgage applications and found that lenders in 2019 were more likely to deny home loans to people of color than to white people with similar financial characteristics, even after controlling for 17 financial factors. “Lenders used to tell us, ‘It’s because you don’t have the lending profiles; the ethno-racial differences would go away if you had them,’” Loya said. Now that these financial factors have been made public through the Home Mortgage Disclosure Act, Loya concluded, “Your work shows that’s not true.” The report found that, nationwide, lenders were 80% more likely to reject Black applicants than white applicants with similar qualifications.


4 Faculty Additions Join UCLA Luskin Social Welfare and Urban Planning Incoming academic experts focus on environmental, racial and health disparities in real and virtual environments — from social media to soil

By Stan Paul

Faculty hires in UCLA Luskin Social Welfare and Urban Planning for the new academic year bring a wealth of new research and teaching, reinforcing the School’s commitment to the health and well-being of individuals and communities.

Assistant Professor Brian Keum has joined Social Welfare. His general research emphasizes the reduction of health and mental health disparities among marginalized identities and communities. In particular, Keum studies the impact of online racism – and online racial violence – on psychosocial outcomes and health disparities. Drawing on his clinical experience, he looks at mental health issues, offline attitudinal and behavioral changes, and risky health behaviors that include substance abuse. A second area of his research is Asian American mental health, as well as multicultural and social justice issues that relate to how mental health counseling is provided.

“As a scientist-practitioner, I am excited to teach both practice and research courses,” said Keum, who will be offering graduate instruction in advanced social work practice and applied statistics in social work.

Judith Perrigo, an infant and early childhood mental health specialist, is also an assistant professor of social welfare. Amid the unusual circumstances of this academic year, Perrigo looks forward to exploring innovative teaching methods while providing meaningful learning experiences in both foundational and advanced social welfare practice courses. This includes sharing some of her recent research on how parents of low socioeconomic status with children in grades 3 to 6 are coping with the unexpected educational demands during the pandemic.

“Our findings suggest that the closure of schools and stay-at-home orders initiated by the COVID-19 pandemic exacerbated pre-existing parental involvement challenges,“ Perrigo explained, noting that families of lower socioeconomic status were more negatively impacted because they “had fewer affordances to buffer the new stressors.”

Perrigo draws from her personal background as a Salvadoran immigrant and 15 years of applied clinical work with children and families to inform her scholarship. Specifically, her research focuses on the well-being of young children — birth to 5 years old — with emphasis on holistic and transdisciplinary prevention and early intervention initiatives with underserved, vulnerable and marginalized populations.

José Loya joins Urban Planning as an assistant professor after recently completing his Ph.D. in sociology at the University of Pennsylvania. At UCLA Luskin he will teach quantitative analysis in urban planning and a seminar on Latino urban issues in the spring.

“My research focuses on ethno-racial disparities in the mortgage market, before, during and after the Great Recession. More generally, I am interested in the barriers minorities face in the homeownership market,” said Loya, who is also a faculty associate at the UCLA Chicano Studies Research Center.

“I am excited to join UCLA’s Luskin School of Public Affairs and working and engaging our students in the community,” added Loya, who worked for several years in positions related to community development and affordable housing in South Florida. He then earned a master’s in statistics from the Wharton School of Business at the University of Pennsylvania. “I’ve already moved to Los Angeles, so I’ll be here locally even if courses are online,” Loya said.

Kirsten Schwarz, who holds a joint appointment as an associate professor of urban planning and environmental health sciences, started at UCLA by co-teaching policy analysis for environmental health science in the spring 2020 quarter.

“Virtually teaching my first class during a global pandemic and social uprising was not how I expected to kick off my career at UCLA,” Schwarz said. “But I was so impressed, and encouraged by, the flexibility, compassion and integrity that the students brought to the experience. It was certainly memorable.”

Schwarz is an urban ecologist working at the interface of environment, equity and health. Her research focuses on environmental hazards and amenities in cities and how their distribution impacts minoritized communities. She recently led an interdisciplinary team through a community-engaged green infrastructure design that integrated participatory design and place-based solutions to achieve desired ecosystem services.

“I’m interested in connecting those areas right between urban planning and environmental health sciences,” said Schwarz, whose work on lead-contaminated soils has helped document how bio-geophysical and social variables relate to the spatial patterning of lead in soils.

Most recently she received a transdisciplinary research acceleration grant from UCLA’s Office of Research and Creative Activities in conjunction with Jennifer Jay, a professor in UCLA’s Department of Civil and Environmental Engineering. Their proposal, “Multimedia Assessment of Children’s Lead Exposure in Los Angeles,” will involve work with graduate students in Civil and Environmental Engineering.

Schwarz also has expertise in science communication and in engaging communities in the co-production of science. She has been recognized by the American Association for the Advancement of Science (AAAS), which named her a 2018-2019 Fellow in the Leshner Leadership Institute in the Center for Public Engagement with Science and Technology. Prior to

joining UCLA, she was an associate professor of environmental science at Northern Kentucky University, where she directed the Ecological Stewardship Institute.

Several other faculty searches have been completed, with four additional faculty members set to join Social Welfare and Urban Planning in the coming year. Those new additions include Adam Millard-Ball, who will arrive in January as an associate professor of urban planning, coming from the University of California, Santa Cruz. Millard-Ball holds a doctorate from Stanford University’s School of Earth Sciences and was selected in the urban data science search. He studies environmental economics and transportation, “adding to our strengths in those fields,” said Dean Gary Segura in a memo announcing his appointment.

Mark Vestal, also starting in January, was selected as an assistant professor by UCLA Luskin Urban Planning in a search on critical Black urbanism, Segura announced. A historian by training, Vestal’s work looks at the history of discriminatory planning and housing policy in Los Angeles and beyond.

Fall 2021 newcomers will include Margaret “Maggie” Thomas in Social Welfare and Veronica Terriquez in Urban Planning.

Thomas is a scholar of family and child well-being and is completing her Ph.D. in social work at Boston University this year. She previously earned an MSW degree from the University of Illinois. Her work focuses on young children in families facing serious economic hardship, as well as children and youth from minority communities and with LGBTQ identities.

Terriquez has been jointly appointed to Urban Planning and UCLA’s Department of Chicano Studies where she will take on the leadership of the Chicano Studies Research Center at UCLA. Terriquez, who earned a Ph.D. in sociology at UCLA, returns to the Westwood campus from UC Santa Cruz. Her work is principally focused on youth and young adult social development, leadership and intergroup relations, and how they are affected by various public policies.

José Loya

José Loya is an Assistant Professor in Urban Planning at UCLA’s Luskin School of Public Affairs and faculty affiliate with the Chicano Studies Research Center. His research addresses Latino issues in urban areas by connecting ethno-racial inequality and contextual forces at the neighborhood, metropolitan, and national levels. His research discusses several topics related to stratification in homeownership, including ethno-racial, gender, and Latino disparities in mortgage access. José received his PhD. at the University of Pennsylvania in Sociology and holds a master’s degree in Statistics from the Wharton School of Business at Penn. Prior to graduate school, José worked for several years in community development and affordable housing in South Florida.