Same-sex couples more likely to be denied mortgage, new research suggests

ATLANTA — Husbands Brett and Jep Wyatt said house hunting is terrifying.

They’re worried about things most first-time homebuyers do, like saving enough for a down payment and finding a house they both love to raise a family.

"There's a lot of those big of financial considerations that we're just now discovering together,” Brett Wyatt laughed.

Channel 2's Dave Huddleston met them in southwest Atlanta's Sylvian Hills neighborhood. The couple showed him a bungalow they loved on a quiet corner lot.

They told Huddleston mortgage discrimination wasn’t high on their fear list.

"Any concerns about discrimination because you guys are husbands?" Huddleston asked.

"Less so on my side. I think, you're a little bit more wary," Jep Wyatt said, gesturing to Brett Wyatt.

"We live in Georgia,” Brett Wyatt said. “We haven't faced any yet, but it’s always on the back of my mind, at least."

But research suggests couples like the Wyatts may be denied their dream of home ownership, not because of how much money they make but because two men would be on the mortgage application.

Iowa State University researchers compared more than 20 years of loan applications. They found same-sex mortgage applicants were 73% more likely to be denied mortgages compared to similar different-sex applicants. Those who were approved often paid higher interest rates.

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For couples who fear they are discriminated against, recourse is limited because citizens who are LGBTQ do not have the same explicit protections in federal law that other minority groups have.

More than half of U.S. states, including Georgia, do not have laws protecting citizens who are LGBTQ from types of housing discrimination, according to the Human Rights Campaign.

"The study acknowledges that other variables may play a role in the results that they found, but I think it's suggestive of discrimination,” said Georgia State University law professor Tanya Washington Hicks.

Hicks explained that since there is no federal law that explicitly protects people who are LGBTQ from discrimination, they rely on safeguards in local laws. A bill called the Equality Act that would include sexual orientation and gender identity as protected characteristics was passed by the U.S. House of Representatives, but is not expected to pass U.S. Senate.

But a Clayton County man's case being decided by the U.S. Supreme Court will decide if discrimination on the basis of sex in the workplace includes sexual orientation. Hicks said that will have sweeping impacts on either expanding or restricting protections for LGBTQ Americans in other ways, like lending and housing.

"I think that it's important to keep our eyes on the Supreme Court decision because that will establish national policy, which means we won’t have this patchwork of laws," Hicks said.

Huddleston asked Kimber White, president-elect of the National Association of Mortgage Brokers, for his take on the study. White said the research methods are imperfect but the discrimination is very real.

"I don't think it's 70 percent, but I do think discrimination is there,” White said. "Discrimination isn't just about a person. It’s about a quality of life for the entire community.”

It’s an issue that is important to White because he is a gay man in a same-sex marriage. He told Huddleston he struggled over the decision to make something so personal part of his professional platform but he saw the need for the mortgage industry to do more for the LGBTQ community.

"Just like we're doing a lot of minority homebuyer education, we're not doing homebuyer education for the LGBT community," White said.

White had tips for mortgage hunters, especially if they fear they could be discriminated against. He said it’s important to get plenty of mortgage quotes. He also suggested doing business with a local lender or broker in person to build a relationship with them. White also said if you get a bad vibe from a lender, walk away. There are too many companies that want your business.

“There is always someone out there that will take care of you,” White said.

House hunters Brett and Jep Wyatt said they're optimistic, even after learning about the Iowa State research. They said they are a part of Atlanta’s strong LGBTQ community and have friends in the real estate industry. For now, their biggest fear is saving up for that down payment.

“The money is much scarier than the idea of discrimination,” Brett Wyatt said.

Cox Media Group