A Mirror and a Map: What the 2025 Lending Study Reveals About Homeownership and Equity

PCRG’s 29th Annual Mortgage Lending Study is more than a dataset — it’s a tool for accountability, advocacy, and community power. For nearly three decades, this study has served as both a mirror, reflecting the state of mortgage lending in our region, and a map, offering direction toward fair access to credit and long-term financial stability.

“Fair access to credit builds not just homes, but stability, community power, and generational wealth.”

In this audio segment, PCRG’s Communications & Marketing Manager Yasmine Jumaa sits down with Research Analyst Druta Bhatt to break down what this year’s findings mean for homeowners, lenders, journalists, and community organizations across Allegheny, Armstrong, Beaver, Washington, and Westmoreland Counties.

Why PCRG Conducts This Study

The annual lending study is rooted in a long history of community-led advocacy against unfair credit shortages in minority neighborhoods. Even after the Fair Housing Act of 1968, redlining persisted — and local organizing played a major role in the creation of the Home Mortgage Disclosure Act (HMDA), a law requiring lenders to publicly report mortgage application data.

Since releasing our first study in 1996, PCRG has expanded the scope and accessibility of this analysis. Today, the study covers five counties and is designed to equip advocates, neighborhoods, and institutions with objective, transparent information.

PCRG analyzes HMDA data each year to:

  • Track who is and isn’t receiving access to homeownership

  • Evaluate lending to minority and low- to moderate-income borrowers

  • Compare bank performance and highlight disparities

  • Inform policymakers and regulators

  • Support community organizing around reinvestment and equitable access to credit

Key Trends from the 2025 Report

“Nearly thirty years of local data make clear that disparities in access to credit are not accidental — they are systemic.”
 

This year’s findings reveal both progress and persistent challenges. While CRA has driven meaningful progress, emerging trends — including the rise of non-CRA lenders, like mortgage companies — signal the need for continued modernization and stronger protections, including implementation of Section 1071 of the Dodd-Frank Act to bring similar transparency to small business lending.

 
 

  • Mortgage lending across Allegheny, Armstrong, Beaver, Washington, and Westmoreland counties has decreased dramatically, dropping to its lowest level since 2018. High interest rates have made borrowing more expensive, leading to sharp declines in refinancing as well as fewer home purchase loans and home improvement loans overall.

  • While banks still hold the largest share of the overall mortgage market, mortgage companies are dominant players in home purchase lending — responsible for more than 60% of all such loans in 2023. The gap in the share of home purchase lending between mortgage companies and banks was the highest in 2021 and has only decreased slightly since then. That shift is significant because mortgage companies aren’t bound by the same equitable lending requirements as banks under the Community Reinvestment Act and typically charge higher loan costs. Their growing popularity is especially visible among minority borrowers, including Black, Asian, and Native American applicants. However, mortgage companies also have higher associated loan costs than banks.

  • Disparities in lending outcomes remain pronounced. In 2023, white applicants faced a denial rate of about 18%, compared to 29% for Black applicants and 36% for Native American applicants.

    Across the five counties, the overall number of home purchase loans has fallen since 2021, with upper-income borrowers receiving most of the loans in Allegheny and Washington Counties. In contrast, Armstrong, Beaver, and Westmoreland Counties — where home values tend to be lower — saw more lending to moderate-income borrowers.

  • In Allegheny County, the share of home purchase loans to Black borrowers rose slightly from 2022 to 2023 but remains low at just 3.2%, despite Black residents making up 12.5% of the county’s population.

  • Loan costs have continued to climb regardless of interest rate trends. Mortgage companies charged nearly 20% more than banks in 2024, while credit unions remained the most affordable option. The average loan amount dipped slightly in 2023 after years of steady increases.

“The study helps communities understand which institutions are stepping up — and which are falling short.”

How Different Groups Can Use the Lending Study

  • Potential buyers can use the lending study to:

    • Understand local lending trends and denial rates

    • Compare neighborhoods by loan volume and lender presence

    • Estimate typical loan amounts by income category

    • Identify lenders active in specific communities

    While this data offers helpful context, homebuyer education remains essential, and the study serves as a starting point for deeper guidance.

  • For neighborhood organizations, the lending study is a cornerstone resource. It helps:

    • Evaluate how banks serve low- to moderate-income and minority borrowers

    • Support or oppose bank mergers, branch changes, and CRA examinations

    • Identify patterns of neighborhood disinvestment

    • Prepare evidence-based recommendations for bank partnerships

    • Inform policy work at the municipal and county level

    Because homeownership is a critical wealth-building tool, these insights highlight who is gaining financial stability — and who is being left behind.

  • Banks use the study as a regional benchmarking tool. It helps them:

    • Understand market position compared to peers

    • Identify underserved populations or neighborhoods

    • Inform strategic decisions and outreach

    • Strengthen CRA performance

    The transparency of the study also creates an accountability ecosystem that encourages continuous improvement and deeper community investment.

  • Local reporters and policymakers play a critical role in bringing clarity, urgency, and action to complex data. The study’s interactive design allows users to filter by county, race, income group, or loan type — making it a rich source for storytelling and policy analysis.

    The data supports evidence-based decisions, highlights racial and economic disparities, and helps spot early warning signs that require legislative or programmatic intervention.

Looking Ahead

“This data is a starting point, not a conclusion. Real change comes from how communities choose to use it.”

The lending study is both a mirror and a map — and PCRG’s hope is that the insight it provides will help change the map for the better. Persistent gaps in Black homeownership and rising barriers to credit call for coordinated, community-driven solutions. Through research and advocacy, PCRG and our partners remain committed to building a more equitable financial landscape.

Explore the full interactive study to dive deeper into trends in your county or neighborhood.