CONSUMER FINANCIAL PROTECTION BUREAU | JUNE 2023
Banking and Credit Access
in the
Southern Region of
the U.S.
Data Spotlight
Office of Consumer Populations
1 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
Table of Contents
Executive Summary .................................................................................................... 2
1. Understanding the southern region ...................................................................... 5
2. Access to banking ................................................................................................... 7
2.1 Branch access ............................................................................................... 7
2.2 Bank account access .................................................................................. 10
3. Access to credit..................................................................................................... 14
3.1 Mortgage lending ....................................................................................... 14
3.2 Small business lending .............................................................................. 23
4. Conclusion ............................................................................................................. 25
Appendix .......................................................................................................... 26
Regional Characteristics ........................................................................................................ 26
Alabama ................................................................................................................................. 27
Arkansas ................................................................................................................................ 30
Georgia .................................................................................................................................. 33
Louisiana ............................................................................................................................... 36
Mississippi ............................................................................................................................. 39
North Carolina ....................................................................................................................... 42
South Carolina ....................................................................................................................... 45
Tennessee .............................................................................................................................. 48
2 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
Executive Summary
This Data Spotlight analyzes banking and credit access in the southern region of the U.S. It seeks
to identify gaps, as well as opportunities to increase financial access in the region, particularly
branch presence and bank account access, and capital access such as mortgage lending and
small business lending. The analysis looks at trends in the region as a whole, and differences
between rural and non-rural areas. The states covered in this report are: Alabama, Arkansas,
Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee.
1
The southern region of the United States is one of the most diverse regions in the country and
home to a significant share of the rural population. Banking deserts are prevalent throughout
the southern region, reflective of the absence of bank or credit union branches in local
communities. This paucity has an impact on both individual consumers by limiting their ability
to walk into a branch to open a bank account, as well as on a community level through limited
opportunity for lending and investments under the Community Reinvestment Act.
In addition, some communities may also be credit deserts, where there may be a lower incidence
of credit on fair and competitive terms, regardless of whether a branch is present. This does not
mean, however, that these regions are void of financial activity. Rather, other institutions may
be stepping in to cash checks, facilitate payments through mobile apps, or make loans, though
often at higher costs or with less favorable terms than what would be otherwise available.
This spotlight shows that in several ways – from opening a bank account to getting a loan –
there is uneven access, particularly for rural communities and communities of color.
• The southern region has a relatively low number of branches per person than elsewhere
in the country (3.6 branches per 10,000 people compared to 5 branches per 10,000
people nationally).
• Though the rates have declined in recent years, the southern region also has higher rates
of unbanked households than nationally. Two states in the region, Mississippi and
Louisiana, have the highest unbanked rates in the country, at 11.1 percent and 8.1
percent respectively. The highest unbanked rates in the region are in rural communities
and communities of color; for example, in Mississippi and Georgia, the rural unbanked
rate is almost double the unbanked rate in metro areas. Arkansas is the only state in the
region in which the rural unbanked rate is lower than the non-rural unbanked rate.
1
For brevity, we refer to eight-states as the “southern region,” consumers who live here as “southerners” and those in
rural counties in the region as “rural southerners.”
3 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
• Top barriers include minimum balance requirements, distrust of banks, high fees, and
barriers to meeting identification requirements.
2
In examining trends in mortgage lending, there is an indication of uneven access to the capital
that people are seeking, particularly in rural communities and communities of color.
• Sixty-one percent of mortgage loans in the region, including in its rural areas (55
percent), are made by lenders other than banks and credit unions, and most loans (55
percent) in the region are made by just a few high-volume non-depository lenders.
• Even though rural southerners apply for home loans at the same rate as consumers
nationally (19 per 1,000 residents) and at a slightly higher than rural consumers
elsewhere, those applications are more likely to be denied in rural areas of the region
than in the rest of the country (27 percent of mortgage applications are denied in rural
southern counties compared to 11 percent nationally). For consumers in rural southern
persistent poverty counties, the denial rate is 39 percent.
• Rural borrowers, minority borrowers, and low- and moderate-income neighborhoods in
the southern region have a lower share of home purchase loans than their share of the
population. For example, even though 23 percent of the population lives in a rural
county, only 14 percent of home purchase loans in 2021 went to those areas. Between
2018 and 2021, only 9 percent of home purchase loans went to Black rural borrowers in
the region, even though they represent 24 percent of the region’s rural population.
Across all lenders in the southern region, in 2021, 10 percent of home purchase loans in
rural areas went to low- and- moderate-income neighborhoods, compared to 17 percent
for comparable non-rural neighborhoods.
• Initial analysis shows credit scores alone do not explain these lower levels of lending.
Even among high-credit score borrowers (680 or above) in both rural and non-rural
areas, applicants of color experience higher denial rates than white applicants. For
example, high-credit score Black applicants in rural areas experience a 17 percent denial
rate, compared to 14 percent for those in non-rural areas. For high-credit score white
borrowers, the denial rates are 9 percent in rural areas, compared to 7 percent in non-
rural areas. For both low- and high-credit score borrowers, rural southerners overall are
denied at higher rates. For example, low-credit score borrowers in rural areas experience
a 29 percent denial rate, compared to 27 percent in non-rural areas. Among those with
high-credit scores, this gap between rural and non-rural denial rates is greatest among
2
Federal Deposit Insurance Corporation, Survey of Unbanked and Underbanked Households (2021),
https://www.fdic.gov/analysis/household-survey/
4 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
Asian applicants (14% denial rate for high-credit score borrowers in rural areas
compared to 10% for those in non-rural areas).
Small businesses employ nearly half of the region’s workforce. Minority-owned businesses
account for roughly one-third of all small businesses in the region, as do women- owned
businesses. While the data is currently limited, there are indications that not all businesses are
getting access to the capital they need.
3
The CFPB will continue to monitor these trends in this region and utilize our tools and
authorities to ensure fairness and transparency in the financial markets in the region. We will
share these findings with federal and state regulators and policymakers, particularly those
supporting mortgage and small business lending.
3
The CFPB recently finalized a Small Business Lending Rule, which implements a 2010 law requiring lenders to
report information on their small business loan applications. When the rule goes into effect, it will provide visibility
into small business lending.
5 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
1. Understanding the southern
region
This Data Spotlight analyzes banking and credit access in the southern region of the United
States. It seeks to identify gaps, as well as opportunities to increase financial access in the
region, particularly branch presence and bank account access, and capital access such as
mortgage lending and small business lending. It covers the following southern states: Alabama,
Arkansas, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee.
These states are home to 48 million people, and share a number of similar demographic
characteristics. The region is disproportionately rural, with 23 percent of people living in a rural
county compared to 14 percent of people nationwide.
The region is rich in its diversity, across race, age, national origin, income, and other factors,
across both rural and non-rural communities. Understanding the region’s attributes, and how
they compare to elsewhere, contributes to understanding different experiences people may have
in accessing financial services.
• More than a third of residents in the region are people of color, comprising 39 percent of
non-rural residents and 33 percent of rural residents. Unique to this region of the
country, 70 percent of the United States’ rural Black population resides in these states.
• While 25% of the is over the age of 60 or older, there is also sizable population of young
people as well, 21% of rural residents are between 18 and 34 years old.
• Nearly half (48%) of the nation’s persistent poverty counties – counties in which more
than 20 percent of the population has been in poverty for at least 30 years – are in these
states.
4
More than 7 million people live in these southern persistent poverty counties .
Following the national pattern, most southern persistent poverty counties are rural (187
out of 240), and these counties are home to roughly 4 million people.
• Income distributions vary by rural and non-rural. They also vary as along lines of race,
ethnicity, and by gender, given wage disparities, historical patterns of discrimination,
and other factors.
5
4
CFPB, Consumer Finances in Rural Areas of the Southern Region (June 2023), Figure 1.
5
For example, in Arkansas, white households compromise the largest number of households earning less than
$15,000 – approximately 114,500, or 13 percent, of all white households – but a greater share of all Black
households– 26 percent (45,059) – are in this category. United for ALICE, Alice in Arkansas Report: A Financial
Hardship Study, 19 (2019), https://aliceinar.org/reports/.
6 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
• There is a sizeable immigrant population, accounting for 3 million people in the region.
Nine percent (4.3 million) of the southern region’s population have limited English
proficiency.
Additional information on regional population characteristics can be found in Appendix A. The
CFPB’s report Consumer Finances in Rural Areas of the Southern Region provides detailed
information on consumers’ financial profiles for both rural and non-rural areas and the region
as a whole.
7 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
2. Access to banking
Banking access is foundational to consumers’ financial stability, ranging from being able open
an account that fits their needs, to increasing access to opportunities for wealth-building in the
future, such as getting a home loan or small business loan on fair terms. One possible indicator
of consumers’ access to banking services is the presence of brick-and-mortar branches in their
communities. Generally, the presence of a bank branch may be associated with greater access to
services, including credit.
6
For certain populations such as older Americans, branches tend to
play a significant role in their ability to access the services they need. Nationally, there has been
a decline in bank branches, particularly in rural, low-income, and Black communities.
7
In a recent listening session with stakeholders from the southern region, the CFPB heard a
common refrain of concern about the ability to access basic services, such as opening an
account, even when a branch is present. These challenges may also serve as a precursor to more
substantial obstacles to developing relationships with a financial institution as well as other
services, such as a mortgage or small business loan.
As we further explore in this section, presence alone may not be a sufficient indicator of access
to these services.
2.1 Branch access
The southern region has fewer branches per resident than elsewhere in the country, with only
3.6 branches per 10,000 people in this region, compared to 5.0 nationally.
8
This lack of
branches alone may be a driving factor in limited access to financial services, particularly when
combined with inaccessible online banking due to lack of quality broadband access in many
areas. Only 69 percent of households in rural parts of the southern region have access to
6
Goodstein and Rhine, "The effects of bank and nonbank provider locations on household use of financial transaction
service" (May 2017) available at https://doi.org/10.1016/j.jbankfin.2017.01.016. See also Nguyen "Are Credit Markets
Still Local? Evidence from Bank Branch Closings" (January 2019) available at https://doi.org/10.1257/app.20170543
7
Federal Reserve, Perspectives from Main Street: Bank Branch Access in Rural Communities (Nov. 2019),
https://www.federalreserve.gov/publications/files/bank-branch-access-in-rural-communities.pdf. See also,
Brookings Institution, “An analysis of financial institutions in Black-majority communities: Black borrowers and
depositors face considerable challenges in accessing banking services,” (Nov. 2, 2021)
https://www.brookings.edu/research/an-analysis-of-financial-institutions-in-black-majority-communities-black-
borrowers-and-depositors-face-considerable-challenges-in-accessing-banking-services/
8
CFPB analysis of Federal Financial Institutions Examination Council, National Information Center (December
2021), National Credit Union Administration, Credit Union and Corporate Call Report Data, Quarterly Data
(December 2021), and U.S. Census Bureau Annual Population Estimates (December 2020). The out-of-region
comparison group excludes counties located in the territories of Guam, Puerto Rico, and the Virgin Islands.
8 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
broadband, compared to 83 percent of households nationally, based on the 2019 5-year
American Community Survey.
The region’s overall lower number of branches also has implications for communities. The
Community Reinvestment Act (CRA), in the 46 years of its existence, only creates duties for
banks to invest based on where they are physically located. These implications may be more
acute in rural communities which tend to have both fewer branches and small banks, with have
less robust requirements than large banks. Thus, CRA investments may be bypassing the
communities that need it the most.
In looking at rural areas in the region, 86 percent of branches are owned by banks and 14
percent are owned by credit unions. While the share of branches owned by credit unions in rural
counties also varies significantly by state, as discussed further in this report, a larger share of
their loan portfolios reaches low- to moderate-income communities and minority borrowers in
rural areas compared to the share of loans by either small or large banks.
FIGURE 1: SHARE OF BRANCHES OWNED BY BANKS AND CREDIT UNIONS BY REGION AND RURAL
STATUS, DECEMBER 2021
78%
83%
79%
77%
86%
79%
79%
22%
17%
21%
23%
14%
21%
21%
0% 20% 40% 60% 80% 100%
Non-Rural
Rural
All Counties
Non-Rural
Rural
All Counties
Out of Southern RegionIn Southern Region
United
States
Banks Credit Unions
Sources: CFPB analysis of Federal Financial Institutions Examination Council, National Information Center
(December 2021), National Credit Union Administration, Credit Union and Corporate Call Report Data,
Quarterly Data (December 2021), and Census Bureau’s Annual Population Estimates (December 2020).
9 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
For many in the region, a physical branch location is critical to accessing basic services. Among
banked households, a larger share of households in rural areas of the region relied solely on a
bank teller.
9
Even in Mississippi’s metro areas, offline channels (bank teller, ATM, and
telephone) are the most common methods of banking.
10
Even when a branch is located in a community, there may be a range of barriers to accessing it.
In rural counties, financial institutions may often be clustered in the central city or on a
highway, which may require remote consumers to still travel significant distances. This
geographic distance is compounded by lack of reliable or public transportation and fluctuations
in gas prices, and quite simply, travel time. Other barriers may include a more limited range of
services offered at the rural branches (including hours, lending services, ATMs), the reach of a
financial institution’s relationships within the community, or certain policies or practices which
may disproportionately exclude certain populations.
This limited access to financial services due to lack of branch presence or restricted branch
services also impacts non-rural areas of the region. For example, the CFPB recently reached a
legal settlement with a large regional bank, Trustmark, for its redlining practices in Memphis,
Tennessee. The bank had branches in Black and Hispanic neighborhoods but did not have
mortgage loan officers at those branches. The CFPB, along with the Department of Justice, is
monitoring Trustmark’s commitment to increase lending in these communities.
11
9
Federal Deposit Insurance Corporation, Survey of Unbanked and Underbanked Households (2021),
https://www.fdic.gov/analysis/household-survey/. This does not include data for South Carolina non-metro
households, as that data is not reported by the FDIC. This share is reflective of the data for the 7 other states in the
region.
10
Federal Deposit Insurance Corporation, Survey of Unbanked and Underbanked Households (2021),
https://www.fdic.gov/analysis/household-survey/
11
CFPB, DOJ and OCC Take Action Against Trustmark National Bank for Deliberate Discrimination Against Black
and Hispanic Families (Oct. 22, 2021), https://www.consumerfinance.gov/about-us/newsroom/cfpb-doj-and-occ-
take-action-against-trustmark-national-bank-for-deliberate-discrimination-against-black-and-hispanic-families/
10 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
2.2 Bank account access
The ability to open an account is generally a first step to someone’s relationship with a financial
institution. That relationship then sets the foundation for future steps, such as a home loan or
small business loan. Barriers to the first may then lead to barriers for the second. While access
to capital is discussed further in this report, this section examines some of the trends in the
region’s unbanked rates.
While the national unbanked rate is 4.5 percent, it is 5.6 percent for the region.
12
Two states in
the region, Mississippi and Louisiana, have the highest unbanked rates in the country, at 11.1
percent and 8.1 percent respectively. In 2021, the most common reason for unbanked
households in the South was not having enough money to meet minimum balance
requirements.
13
Other top barriers included lack of trust in banks, privacy concerns, and high
bank account fees. Across the region, the highest unbanked rates are in rural communities and
communities of color. There has also been progress in some southern states to expand bank
account access, which shows it is not a permanent feature of the financial landscape.
Within the southern region, there are an estimated 944,000 people in rural households without
bank accounts, even when not accounting for those in South Carolina, whose numbers are not
reflected in FDIC data sets. The other seven states in this region make up nearly 34 percent of
the national rural unbanked population, despite being only about 24 percent of the national
rural population. In 2021, a quarter (25.3%) of rural unbanked households in the South reported
minimum balance requirements as the primary barrier (for non-rural unbanked households it
was 17.2%).
In 2021, with the exception of Arkansas, each state had an unbanked rate that was higher in
rural than in its non-rural areas.
14
For some states, this is extreme: in Mississippi and Georgia,
the rural unbanked rates are essentially double the unbanked rates in metro areas. The rural
demographics of these states are also distinct – minority residents make up 44 percent of the
rural population in Mississippi, 35 percent of rural Georgia, and 23 percent of rural Arkansas.
12
Federal Deposit Insurance Corporation, Survey of Unbanked and Underbanked Households (2021),
https://www.fdic.gov/analysis/household-survey/
13
The FDIC surveys unbanked households for the reasons they lack access to a bank account. While survey responses
are not available for these states individually, the FDIC does aggregate responses for the South, as defined by the
Census (Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland,
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee and Texas, Virginia, West Virginia)
https://www.census.gov/programs-surveys/popest/about/glossary/geo-terms.html.
14
The definition of rural is in this section is what the FDIC refers to as “non-metro,” and is defined as “all counties
within a state that are not part of a metropolitan statistical area—counties that are either micropolitan or non-CBSA
(neither metro nor micro).” This is a slightly different definition for rural than what it is used in this paper for the
branch presence, HMDA analysis, and CCP analysis, all of which rely on the counties’ RUCC code.
11 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
FIGURE 2: UNBANKED RATE, RURAL V. NON-RURAL HOUSEHOLDS, 2021
0%
2%
4%
6%
8%
10%
12%
14%
16%
National Alabama Arkansas Georgia Louisiana Mississippi North
Carolina
Tennessee
Non-Rural Rural
Source: FDIC, Survey of Unbanked and Underbanked Households (2021). South Carolina, as the FDIC does
not report data for rural households in the state.
There are significantly higher unbanked rates for Black households than for white households.
For example, the unbanked rate for Black households in Mississippi is 6.6 times the unbanked
rate for white households, and it is 5.5 times in Louisiana. Mississippi and Louisiana are also the
two states with the highest overall percentages of Black residents in the country, and the highest
percentages of Black populations in rural areas. In looking at the South as a whole, minimum
balance requirements were the top barrier for Black and Hispanic unbanked households, but not
for white households.
15
For Hispanic households, other top concerns include lack of trust in
banks and not having the type of identification required by many financial institutions to open
an account.
16
Though not included in the FDIC survey, the CFPB’s stakeholder listening sessions with
community stakeholders in the region reflect concern about the barriers limiting justice-
15
White unbanked households selected “other reasons” besides the options provided in the FDIC survey. 2021 FDIC
National Survey of Unbanked and Underbanked Households. Survey results by region available at
https://www.fdic.gov/analysis/household-survey/index.html
16
Id.
12 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
involved individuals from obtaining bank account access.
17
This has a particularly acute impact
on the region because five of the top ten states with the highest incarceration rates are in the
southern region, meaning that there is a large portion of the populations being impacted by the
justice system.
18
A recent CFPB report noted potential barriers to banking account access for
justice-involved individuals, including things like identification requirements, proof of address,
and financial institutions pulling consumer credit reports from third parties, such as Early
Warning Systems (EWS) and ChexSystems.
19
Credit reports containing negative or inaccurate
information may be difficult to resolve during or following incarceration.
20
Even as gaps remain, there has been a decline in unbanked rates in certain states in the region
over recent years, including for rural communities and communities of color. In 2017, 8.2
percent of households in the region were unbanked, and by 2021, this number had fallen to 5.6
percent. During this time, Arkansas and Alabama made significant gains. In Arkansas, the
unbanked rate declined from 7.5 percent to 3.4 percent from 2017 to 2021. Its rural unbanked
rate also declined from 9.7 percent to 2.1 percent. In Alabama, the unbanked rates mirror the
national average, with 4.7 percent unbanked in 2021, which is down from 8.7 percent in 2017.
While the unbanked rate for Black households in Alabama has also declined during this
timeframe, from 18.8 to 9.7 percent, it remains over 5 times the current unbanked rate for white
households in the state (1.8 percent).
The intersection of access to banking and access to credit
A look at a rural Delta county shows how minimum balance requirements, access to banking
relationships, and access to credit may all intersect. Over 70 percent of the county’s population
is Black. The median family income for the county is $62,300 for white families and $24,900 for
Black families. Two banks in the town have branches half-a-mile apart on the same street. Both
banks are designated Community Development Financial Institutions (CDFIs). Here is how they
differ in minimum balance requirements and home mortgage lending, using the Home
Mortgage Disclosure Act (HMDA) data for analysis:
17
See also, Hope Policy Institute, Report: Examining the Intersection Between Criminal Justice and Financial
Services in the Deep South, (Jan. 13, 2021), http://hopepolicy.org/reports/report-examining-the-intersection-
between-criminal-justice-and-financial-services-in-the-deep-south/, overlap between high rates of incarceration and
high rates of unbanked overlap; and Financial Health Network, Supporting Returning Citizens’ Financial Health
(January 2023), https://finhealthnetwork.org/wp-content/uploads/2023/01/Supporting-Returning-Citizens-
Financial-Health-2023.pdf, lessons learned from a pilot initiative in Alabama to expand access to identification for
justice-involved individuals in order to obtain bank accounts.
18
Prison Policy Initiative, States of Incarceration: The Global Context 2021 (Sept. 2021),
https://www.prisonpolicy.org/global/2021.html
19
CFPB, Justice-Involved Individuals and the Consumer Financial Marketplace (Jan. 2022),
https://files.consumerfinance.gov/f/documents/cfpb_jic_report_2022-01.pdf.
20
Id.
13 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
• One bank has a basic checking account with a $5 fee if the balance falls below $300.
Another account option has a $8 monthly fee, which can be waived if the balance stays at
$15,000 or more. From 2018 to 2021, over one-third of the bank’s loans did not include
race data. But, according to data that was reported, 12 percent of the bank’s mortgage
loans in this county went to Black borrowers and over half went to white borrowers.
• The other bank down the street has lower thresholds, lower fees, and a higher lending
volume overall in the community, with higher shares going to Black borrowers. It has a
basic checking account with no ongoing minimum balance requirements, but does have a
$2.95 monthly service fee, which can be waived if a consumer opts into receiving
electronic statements. Another checking account option a $7 monthly service fee, which
can be waived if the balance stays above $600. This bank made double the number of
mortgage loans in the county made by the first bank in the same period of time 32
percent of which went to Black borrowers, 49 percent went to white borrowers, and 17
percent of the loans did not report race data.
14 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
3. Access to credit
This section further examines patterns in accessing credit, specifically mortgage loans and small
business lending.
3.1 Mortgage lending
One of the uniquely defining characteristics of this region is the high rate of Black
homeownership in comparison to the rest of the country. In Mississippi and Alabama, more
than 50 percent of Black households are homeowners, compared to 41.7 percent nationally.
21
However, significant gaps between Black and white homeownership remain, and Black
homeownership rates in some parts of the region have been on a steady decline since 2008,
when predatory lending practices, including refinancing of loans on homes people already
owned, led to massive foreclosures and loss of wealth.
22
These declines do not seem to be due to a lack of demand. A report by the National Association
of Real Estate Brokers found that in 2021, 64% of Black mortgage loan applications were for
properties located in the South, and 40% of white applicants. For both groups, the South has the
largest share of mortgage loan applications.
23
Rural consumers in the region apply for home-
purchase mortgages at the same rate as consumers nationwide (19 per thousand residents) and
at a slightly higher rate than rural consumers outside the region (16 per thousand residents).
24
However, those applications are less likely to be successfully originated in the rural areas of the
region than in the rest of the country.
25
This section utilizes lender-reported data under HMDA to examine mortgage originations by
lender type and size, borrower and neighborhood demographics, and other factors.
26
The states
included are: Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, South
Carolina, and Tennessee. The analysis examines regional trends, and as compared to national
21
Joint Center for Housing Studies, In nearly every state, people of color are less likely to own homes compared to
white households, (Feb. 2023), https://www.jchs.harvard.edu/blog/nearly-every-state-people-color-are-less-likely-
own-homes-compared-white-households.
22
Hope Policy Institute, Mississippi Senate Housing Committee (Nov. 13, 2020), http://hopepolicy.org/manage/wp-
content/uploads/Senate-Housing-Committee-Testimony-Presentation-HOPE-11-13-2020.pdf. Black homeownership
rates in Mississippi in 2019 were at their lowest point since 2005.
23
National Association of Real Estate Brokers, 2022 State of Housing in Black America (Nov. 2022), Table 13,
https://www.nareb.com/site-files/uploads/2022/11/2022-State-of-Housing-in-Black-America_V4.pdf
24
CFPB, Consumer Finances in Rural Areas of the Southern Region (June 2023).
25
Id.
26
Analysis of closed-end first-lien mortgages for site-built, single-family, and principal-residence homes. The data
here is derived from replications of Table 2 and 5a from the CFPB’s 2021 Annual HMDA report but for just the states
covered in this report.
15 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
lending patterns. It primarily draws on 2021 data, and in some places, it examines trends over a
four-year time frame (2018 to 2021). For state-specific numbers, see state fact sheets in the
Appendix.
Analysis of mortgage lending trends in the region
CFPB’s analysis found that the majority of loans in the region are made by lenders other than
banks or credit unions, known as “non-depositories,” and most loans are concentrated among
just a few lenders. In the rural areas of the region, there are also higher shares of government-
backed loans than elsewhere in the region as well as nationally. Similar to national trends, these
government-backed loans are made most often by non-depositories. Additionally, certain
populations – such as minority borrowers, low-income neighborhoods, and rural borrowers –
have a lower share of mortgage loans than other populations in the region.
This analysis shows that credit scores alone do not explain these lower levels of lending.
Further, people in the region who did receive a mortgage loan tend to pay higher rates than
consumers elsewhere. In 2021, the mean interest rate for a home purchase loan in rural
southern persistent poverty counties was 3.942 percent, and 3.512 percent in the rural southern
region, compared to 3.127 percent nationally.
27
As such, there may be unrealized opportunities
to expand access to safe, affordable mortgage loans, particularly among small and large banks
and credit unions.
All mortgage loan originations
The majority (61 percent) of mortgage loans in the region, both in rural and non-rural areas, are
made by lenders other than banks and credit unions. It is slightly lower in rural areas (55
percent). By contrast, depositories (small banks, large banks, and credit unions) account for 71
percent of the mortgage lenders making loans in the region but originated only 35 percent of the
loans in 2021. Large banks are the second largest lender, accounting for 26 percent of loan
originations in rural areas and 22 percent in non-rural areas.
27
CFPB, Consumer Finances in Rural Areas of the Southern Region (June 2023).
16 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
TABLE 1: MORTGAGE LENDERS SERVING THE SOUTHERN REGION, 2021
Area Small Bank
Large
Bank
Credit
Union
Affiliated
Mortgage
Company
Non-
Depository
All
Rural 26% 19% 22% 3% 30% 1,644
Non-Rural 28% 19% 23% 3% 27% 2,079
Southern
Region
29% 19% 23% 3% 26% 3,723
National 30% 15% 31% 2% 22% 4,332
TABLE 2: MORTGAGE ORGINATIONS IN THE SOUTHERN REGION, 2021
Area
Small
Bank
Large
Bank
Credit
Union
Affiliated
Mortgage
Company
Non-
Depository
All
Rural 8% 26% 8% 3% 55% 290,366
Non-Rural 5% 22% 7% 4% 62% 1,698,599
Southern
Region
5% 23% 7% 4% 61% 1,988,935
National 5% 22% 7% 3% 52% 13,986,000
The majority of loans are concentrated among just a few high-volume, non-depository lenders,
meaning companies made more than 1,000 loans in a year. High-volume non-depositories
account for 7 percent of all mortgage lenders in the region but are responsible for 55 percent of
all loan originations. This is a slightly more concentrated market with fewer choices than other
areas of the country. Nationally, high-volume non-depositories account for 12 percent of
mortgage lenders, and 62 percent of all loan originations.
TABLE 3: SHARE OF MORTGAGE ORIGINATIONS BY HIGH-VOLUME NON-DEPOSITORIES
Area
Number of
High-Volume
Non-
Depositories
% of All
Lenders
Serving Area
Number of Loans Made
by High-Volume Non-
Depositories
% of All Loans
Originated in
Area
Rural
30
2%
113,779
39%
Non-Rural
141
7%
985,074
58%
Southern Region
151
7%
1,491,470
55%
National
518
12%
8,693,000
62%
17 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
After non-depositories, large banks are the next largest share of high-volume lenders. Of the 314
large banks making mortgages in the region’s rural areas, 20 made more than 1,000 loans in
these communities in 2021. Looking at the next tier – large banks that make between 100 and
1,000 loans in rural areas – there are 66.
Home purchase loans
The following analysis and discussion focus specifically on home purchase loans for single-
family, site-built homes in the southern region, thus excluding originations such as refinances
which are included in the numbers above.
FIGURE 3: ANALYSIS OF HOME PURCHASE LOANS IN THE SOUTHERN REGION, BY RURAL AND NON-
RURAL, IN 2021. STATE-SPECIFIC FACT SHEETS ARE AVAILABLE IN THE APPENDIX.
Small
Bank
Large
Bank
Credit
Union
Affiliated
Mortgage
Company
Non-
Depository
All
Lenders
Loans in Rural Counties
7,065 25,484 7,607 4,677 53,416 98,249
Government-Backed
33% 34% 12% 51% 60% 47%
LMI Borrowers 23% 21% 22% 20% 22% 22%
LMI Neighborhoods
12% 9% 13% 9% 10% 10%
Minority Borrowers 13% 12% 20% 15% 15% 15%
Loans in Non Rural Counties
29,885 138,511 33,525 36,084 369,910 607,915
Government-Backed 29% 21% 14% 39% 42% 35%
LMI Borrowers
27% 26% 29% 29% 31% 29%
LMI Neighborhoods
15% 15% 20% 15% 17% 17%
Minority Borrowers 18% 21% 27% 29% 27% 25%
Loans in Southern Region 36,950 163,995 41,132 40,761 423,326 706,164
Government-Backed 30% 23% 14% 41% 45% 37%
LMI Borrowers 26% 25% 27% 28% 30% 28%
LMI Neighborhoods 15% 14% 19% 15% 16% 16%
Minority Borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-Backed 21% 15% 11% 37% 36% 29%
LMI Borrowers 31% 25% 28% 29% 30% 29%
LMI Neighborhoods 15% 15% 16% 15% 18% 17%
Minority Borrowers 16% 22% 19% 27% 27% 25%
Note: Lender categories are consistent with those in the CFPB HMDA annual report. Small banks consist of those
banks with assets (including the assets of all other banks in the same banking organization) of less than $1 billion at
the end of 2021. Affiliated mortgage companies are non-depository mortgage companies owned by or affiliated with a
banking organization or credit union. Non-depositories are those other than banks or credit unions.
18 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
Government-backed loans
A government-backed loan is one that is insured by the Federal Housing Administration or
backed by guarantees from the U.S. Department of Veterans Affairs, the Farm Service Agency,
or the Rural Housing Service.
28
In the southern rural counties, nearly half of all home purchase
loans (47 percent) are government-backed, as compared to 29 percent nationally.
Among states in the region, the share of government-backed loans in rural communities ranges
from a high of 60 percent in North Carolina to 45 percent in Louisiana. Among mortgage
lenders making loans in rural areas of the region, non-depositories have the highest percentage
of government-backed loans – accounting for nearly 60 percent of their loans. This is higher
than in non-rural areas (42 percent).
Credit unions make the largest share of their rural loans to minority-borrowers and low-to-
moderate income neighborhoods, and just 12 percent of their rural home purchase loans in the
region are government-backed. Even with these unique characteristics, credit unions sell the
fewest share of their rural loans (20 percent), to the secondary market compared to other
lenders serving these same areas, and a lower share than their credit union counterparts in non-
rural areas (27 percent) and nationally (46 percent). The next smallest is small banks, which sell
67 percent of their loans.
Loans to low- and moderate-income borrowers and neighborhoods
There is consistently a lower share of loans to low- and -moderate-income borrowers and
neighborhoods in the rural counties than non-rural areas in this region and nationally. This
trend was consistent across all home purchase loans and lender types from 2018 to 2021. In
total, during this time period, 21 percent of home purchase loans in rural areas have gone to
low- and moderate-income borrowers in rural areas, and just 12 percent to low- and moderate-
income neighborhoods.
In 2021 alone, 22 percent of home purchase loans in southern rural counties were made to low-
and moderate-income borrowers. In comparison, roughly one-third of home purchase loans in
non-rural areas of the region and nationally in 2021 were to these borrowers.
29
Small banks had
28
Government-backed loan as used here is the equivalent of the “nonconventional loan” in the CFPB Annual HMDA
Reports and does not include loans backed by Fannie Mae or Freddie Mac.
29
In accordance with the definitions used by the federal bank supervisory agencies to enforce the
Community Reinvestment Act, low- and moderate-income (LMI) borrowers are defined as those with incomes less
than 80 percent of the estimated current area median family income (AMFI). The area median family income from
FFIEC used in income level grouping of borrowers and census tracts differ by metropolitan statistical area status. For
borrowers in metropolitan statistical areas (MSAs), their income and tract median income are compared to median
family income of the MSA or metropolitan statistical division (MSD). For borrowers outside of a MSA, their income
and tract median income are compared to median family income of non-metropolitan areas of that state.
19 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
the greatest share (23 percent) of their loans to low- and moderate-income borrowers in rural
areas, accounting for 1,630 loans to this group of borrowers. In a state-by-state analysis, loans to
rural low- and moderate-income borrowers were highest in Arkansas at 30 percent and least in
Georgia at 18 percent.
Also in 2021, 10 percent of loans in rural areas went to low- to- moderate-income
neighborhoods, compared to 17 percent for comparable non-rural neighborhoods in the region
and nationally. Loans to these neighborhoods in southern rural areas are lowest in Alabama at
just 7 percent and highest in Louisiana at 18 percent.
Loans to minority borrowers
The share of home purchase loans to minority borrowers in the southern region is consistently
lower than their share of the population, both in rural and non-rural areas. Minority residents
are 38 percent of the population, yet they received only 25 percent of the home purchase loans
in 2021.
This trend was consistent across the four years analyzed for this report—2018 to 2021. On a
disaggregated basis, across all four years, 14 percent of loans in the region went to Black
borrowers, even though they represent 26 percent of the population. Rural areas show the
greatest gap between share of loans to Black borrowers and their share of the population.
TABLE 4: SHARE OF LOANS TO BLACK BORROWERS IN RURAL AND NON-RURAL AREAS IN THE
SOUTHERN REGION, COMPARED TO SHARE OF POPULATION, 2018 TO 2021.
Across the region in 2021, affiliated mortgage companies, credit unions, and non-depositories
each had just over 25 percent of their loans reaching minority borrowers, whereas small banks
and large banks have 20 percent or less. For all lenders, the shares of loans to minority
borrowers are lower in rural areas, though credit unions have the highest share (20 percent) of
their home purchase loans reaching rural minority borrowers. For small banks and large banks,
13 percent and 12 percent of their home purchase loans, respectively, went to rural minority
borrowers in 2021.
The lower share of home purchase loans to minority borrowers, however, is not due to credit
scores alone. Even though the denial rates in total look relatively the same between rural and
Area
% of Loans to
Black Borrowers
% of Area’s
Population that is
Black
Difference Between
Population Share
and Loan
Origination Share
Rural 9% 24% 15%
Non-Rural
15%
26%
11%
Southern Region 14% 25% 11%
National
7%
14%
7%
20 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
non-rural applicants, there are importance differences by race and ethnicity. Across both rural
and non-rural and across credit scores, borrowers of color experience higher denial rates than
their white counterparts. For high credit score applicants, Asian applicants experience the
highest disparity in denial rates based on rural versus non-rural. For those with low credit
scores, the largest rural/non-rural disparity in denial rates is among Black applicants.
FIGURE 4: HOME PURCHASE LOAN APPLICATION DENIAL RATES IN THE SOUTHERN REGION, BY
RURAL, RACE, AND CREDIT SCORE, 2018-2021. STATE-SPECIFIC FACT SHEETS IN THE
APPENDIX.
Credit Score
Race/Ethnicity
Rural Non-Rural
White 25% 22%
Black 36% 31%
Asian 32% 29%
Hispanic 25% 23%
Missing 36% 32%
Total 29% 27%
White 9% 7%
Black 17% 14%
Asian 14% 10%
Hispanic 12% 10%
Missing 15% 12%
Total 10% 9%
680 or Above
Below 680
Note: "Missing" refers to applications in which the race of the applicant(s) has not been reported or is not
applicable or the application is categorized as White, but ethnicity has not been reported.
Relatedly, consumers in rural southern persistent poverty counties are nearly four times more
likely to have their application denied than the national average (39 percent compared to 11
percent.)
30
Across of all of the rural areas in the southern regions, 27 percent of mortgage
applications are denied by the lender.
31
Refinances
There are also gaps in refinancing rates for minority borrowers in the region. From 2018 to
2021, the percentage of refinances for non-Hispanic white borrowers exceeded the rates of loan
originations for this demographic, but for minority borrowers, it was lower. This was
30
CFPB, Consumer Finances in Rural Areas of the Southern Region (June 2023). Table 7.
31
Id.
21 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
particularly pronounced for Black and Hispanic borrowers in 2020, when interest rates reached
historic lows and the number of refinances more than doubled the amount of the previous year.
In 2020, 75 percent of all loans and 76.4 percent of all refinances in the rural South were to non-
Hispanic white borrowers. By comparison, 8.4 percent of all loans and just 5.4 percent of all
refinances – down from 8.9 percent in 2018 –in the rural South were to Black borrowers.
Hispanic borrowers in rural areas received 2.8 percent of home purchase loans, and just 1.1
percent of refinances. Similar trends persist in non-rural areas of the region as well.
TABLE 5: SHARE OF REFINANCES IN THE REGION COMPARED TO SHARE OF HOME PURCHASE LOANS
IN 2020, BY BORROWER RACE AND ETHNICITY
Race/Ethnicity
Rural Home
Purchase Loans
Rural
Refinances
Non-Rural Home
Purchase Loans
Non-Rural
Refinances
Asian 0.9% 0.5% 3.4% 3.8%
Black or African
American
8.4% 5.4% 15.0% 9.9%
Hispanic white 2.8% 1.1% 4.3% 1.9%
Other minority 0.8% 0.6% 0.6% 0.5%
Joint 2.0% 1.5% 2.5% 2.1%
Total Minority 14.9% 9.1% 25.9% 18.1%
Non-Hispanic white 75.3% 76.4% 61.5% 64.7%
Missing 9.9% 14.5% 12.6% 17.2%
Total Originations
(in thousands)
87.4 108.4 585.2 834.4
Note: "Missing" refers to applications in which the race of the applicant(s) has not been reported or is not
applicable or the application is categorized as White, but ethnicity has not been reported.
These refinance gaps may be related to the origination channel. As earlier discussed, the largest
number and share of loans to minority borrowers are from non-depository lenders, which
ultimately sell over 90 percent of their loans after origination. As such, if a borrower is seeking
to refinance, they may not know who to approach, and the lender may be doing little to
proactively build relationships. For example, a lender may work harder to build a relationship if
the borrower banks at the institution that originally made the loan. Other factors may be lower
home values and smaller original mortgage loan sizes. These factors and others became a perfect
22 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
storm of barriers to accessing lower interest rates, which could have provided significant savings
over the life of the loan.
Consistent with national trends, the frequency of missing race and ethnicity data in the region
has increased over the last few years. This trend is seen in both in the region’s rural and non-
rural areas as well as for home purchase originations and refinances.
Implications of mortgage lending analysis
These initial findings have several implications. Given the high-levels of non-depository
mortgage lending in the region, further analysis may be needed to better understand the terms
of the loans, which is beyond the scope of this initial analysis. Similarly, the low lending levels by
depository institutions, particularly those with lower levels of lending to protected classes,
deserve further exploration. Additionally, this data highlights the important role of the federal
housing finance infrastructure in meeting the needs of this region through government-backed
lending programs and the secondary market. Finally, it is worth exploring whether increased use
of Special Purpose Credit Programs, which enable the development of directed lending
programs to reach historically underserved populations, would impact lending in this region.
32
While not reflected in the HMDA data, there are generally other compounding factors in the
mortgage lending market, which may have a pronounced presence in the region. These include
things such as challenges in obtaining adequate appraisals in rural areas and racially
discriminatory appraisals practices, both of which lead to undervaluing a home, which in turn
reduces the amount of credit a borrower may qualify for. Additionally, this region is not immune
from the influx of private investors in purchasing affordable housing stock that may otherwise
be available to low-income or first-time homebuyers. Finally, an important source of housing in
the region, particularly for rural areas, is manufactured housing. The CFPB’s report, Consumer
Finances in Rural Areas of the Southern Region, notes that some manufactured home loans
secured by land (sometimes called ‘chattel’ loans) are much more common in the rural south 7%
percent versus 3 percent in other rural areas versus 1 percent nationally.
33
Manufactured
housing is an ongoing area of interest to the CFPB.
34
32
CFPB, Blog, Using Special Purpose Credit Programs to meet unmet needs (July 19 2022),
http://www.consumerfinance.gov/about-us/blog/using-special-purpose-credit-programs-to-serve-unmet-credit-
needs/
33
CFPB, Consumer Finances in Rural Areas of the Southern Region, (June 2023)
34
See e.g., CFPB, Manufactured Housing Finance: New Insights from the Home Mortgage Disclosure Act, (May 7,
2021), https://www.consumerfinance.gov/data-research/research-reports/manufactured-housing-finance-new-
insights-hmda/
23 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
3.2 Small business lending
Small businesses play critical roles in the southern region’s economy and within local
communities. A small business’s ability to access capital can be a determining factor in its
ongoing survival and future growth, which then results in more jobs and economic activity. As in
other areas described in this paper, this access to capital may not be even across all small
businesses, which may unnecessarily hamper economic opportunities for the region.
CFPB’s stakeholder listening sessions with community stakeholders in the region revealed a
number of concerns with access to small business capital, including for small farms and
agricultural businesses. One was the challenges in establishing a banking relationship in the first
place, either due to living in a banking desert or being able to be served by the bank in their
community. Stakeholders shared how Black women-owned businesses and farmers in the region
face challenges in accessing the credit they need to start-up businesses, even when they have
been provided all the necessary technical assistance. Other barriers in overcoming perceived risk
by lenders include challenges with personal credit history, collateral gaps, and specific
challenges for justice-involved individuals. Finally, stakeholders expressed concern with, and
examples of how online predatory lenders are stepping into these gaps, putting the future
financial stability of businesses at risk.
In these eight states, there are more than 4.7 million small businesses, defined as businesses
with 500 or fewer employees. They employ nearly half (45.6 percent) of the region’s workforce.
In 2020, the most recent year available from the Small Business Administration, banks in the
region that are required to report lending volume under the Community Reinvestment Act made
$17.7 billion in loans to businesses with revenues of $1 million or less. There has been a steady
decline down from approximately $24.4 billion in loans for 2005.
Similar to national trends, nearly one-third (27 percent) of small businesses in the region are
minority-owned, and 38 percent are owned by women, thus signifying their critical role in the
overall economic landscape. However, there are some disparities:
• 16 percent of white-owned businesses have employees, compared to 3 percent of Black-
owned businesses and 7 percent for Hispanic-owned businesses.
• 17 percent of businesses owned by men have employees, compared to 7 percent for women-
owned businesses.
For all of these groups, the share of businesses in the region with employees is lower than the
share nationally. Minority- and women-owned businesses typically have fewer numbers of
24 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
employees than white-owned-businesses.
35
Given the importance of capital in fueling business
expansion, these disparities may be a signal uneven access to the capital they need.
Survey data from the Federal Reserve show that nationally, the number of businesses that
applied for financing but did not receive any has steadily increased from 2016 to 2021.
36
The
data show that this inability to get the full financing sought was particularly acute among
minority-owned businesses and businesses with fewer employees, and these numbers increased
dramatically between 2019 and 2021.
37
Relatedly, white-owned businesses are twice as likely to
have their funding needs met than Asian-Americans and Hispanic-owned firms, and three times
as likely than Black-owned businesses.
38
There are a number of tools to support the increase and transparency of small business lending
in the region. First, the CFPB recently finalized a Small Business Lending Rule, which
implements a 2010 law requiring lenders to report information on their small business loan
applications. When the rule goes into effect, it will provide visibility into small business
lending.
39
Additionally, lenders have the ability to create Special Purpose Credit Programs,
which enable the development of directed lending programs to reach historically underserved
populations.
40
Finally, the Community Reinvestment Act can be a vehicle for banks and
regulators to ensure lending capital is reaching small businesses in the communities they serve.
35
Small Business Administration Office of Advocacy, 2018 Small Business Profile, https://cdn.advocacy.sba.gov/wp-
content/uploads/2018/11/23101710/2018-Small-Business-Profiles-US.pdf. Minority-owned employer firms had 8
employees on average, compared to 11 for non-minority owned firms, and that women-owned firms had just over 8
employees compared to 11 employees at firms owned by men.
36
Federal Reserve, Small Business Credit Survey, 23 (2022), https://www.fedsmallbusiness.org/survey/2022/report-
on-employer-firms
37
For example, for businesses with 1 to 4 employees in 2019, 55 percent received less than the full financing sought,
and by 2021, this number climbed to 77 percent. For businesses with more employees, they were more likely to report
receiving the full amount of funding requested.
38
Federal Reserve, 2022 Report on Firms Owned by People of Color, 17, (2022),
https://www.fedsmallbusiness.org/survey/2022/2022-report-on-firms-owned-by-people-of-color.
39
CFPB, “CFPB Finalizes Rule to Create a New Data Set on Small Business Lending in America, March 30, 2023,
https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-rule-to-create-a-new-data-set-on-small-
business-lending-in-america/ https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-rule-to-create-
a-new-data-set-on-small-business-lending-in-america/
40
CFPB, Using Special Purpose Credit Programs to meet unmet needs (July 19 2022),
http://www.consumerfinance.gov/about-us/blog/using-special-purpose-credit-programs-to-serve-unmet-credit-
needs/
25 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
4. Conclusion
While access to banking or credit may be limited due to many parts of the southern region being
considered a banking desert, there may also be limited access to banking services and capital
even when bank branches are present.
• The southern region has a relatively low number of branches per person than elsewhere
in the country, and higher rates of unbanked households.
• Opportunities to close the gaps may exist in addressing barriers to bank account access
for households in rural communities and communities of color.
• Top barriers include minimum balance requirements, distrust of banks, high fees, and
barriers to meeting identification requirements.
In examining trends in mortgage lending, there is an indication of uneven access to the capital
that people are seeking, particularly in rural communities and communities of color.
• The majority of mortgage loans in the region, including in its rural areas, are made by
non-depositories, and most loans are made by just a few high-volume lenders.
• Mortgage interest rates in the region’s rural areas are higher, on average, than mortgage
interest rates nationally.
• Even though rural southerners apply for home loans at the same rate as consumers
nationally and at a slightly higher than rural consumers elsewhere, those applications are
more likely to be denied in the rural areas of the region than in the rest of the country.
• Minority borrowers, low-income neighborhoods, and rural borrowers in the southern
region have a lower share of home purchase loans than their share of the population.
• Initial analysis shows credit scores alone do not explain these lower levels of lending.
The CFPB will continue to monitor these trends in this region and utilize our tools and
authorities to ensure fairness and transparency in the financial markets in the region. We will
also share these findings from this report and the Consumer Finances in Rural Areas of the
Southern Region with federal and state regulators and policymakers, particularly those
supporting mortgage and small business lending
26 DATA SPOTLIGHT: BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
Appendix
Regional Characteristics
Source: CFPB, Consumer Finances in Rural Areas of the Southern Region, June 2023.
Rural
PPCs in
southern
region
Rural
southern
region
Non-
southern
region
rural
Non-
rural
southern
region
Southern
region
Nationwide
Median household
income
$36,827 $42,021 $52,028 $58,200 $54,527 $65,770
Percent age 18-34 22 21 21 24 23 23
Percent age 60+ 24 25 26 21 22 22
High school
graduation rate
(percent)
82 83 88 89 88 90
Percent with at
least some college
44 47 52 61 58 62
Percent with a
post-secondary
degree
22 24 29 37 34 39
Percent Black
41
24
3
26
3
12
Percent Hispanic
4
5
10
8
10
18
Percent White
52
67
81
61
81
61
Percent Asian
1
1
1
3
1
5
Percent American
Indian or Alaska
Native
2 1 2 0 2 1
Percent foreign-
born
2 3 4 8 7 14
Percent speaking
a language other
than English at
home
5 5 10 11 9 22
Percent of
households with
broadband access
64 69 76 81 78 83
Bank/CU
branches per
10,000 residents
4.3 4.0 6.3 3.0 3.6 5.0
Percent of owner-
occupied housing
67 70 73 67 67 66
Number of
counties
187 399 1,576 289 688 3,142
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ALABAMA
Alabama demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 783 2,412 3,195
Black 272 1,020 1,292
Asian 6 59 65
Hispanic White 34 91 125
Other minority 29 85 114
Two or more races 18 65 83
60 and older 290 831 1,121
Household income less than $40,000 214 552 765
Household income between $40,000
and $99,999
159 547 705
Household income over $100,000 63 335 397
Alabama population 1,143 3,734 4,876
Alabama households 435 1,433 1,868
Number of county observations 38 29 67
Share of branches.
21%
Credit unions
Banks
79%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
4.7%
9.7%
7.3%
3.3%
1.8%
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ALABAMA
Mortgage lenders serving Alabama, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 16% 20% 17% 3% 43% 574
Non-rural 22% 23% 18% 3% 34% 929
Alabama - total 22% 23% 19% 3% 34% 329
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 26% 23%
Black 39% 32%
Asian 31% 30%
Hispanic 26% 24%
Missing 38% 34%
Total 30% 27%
680 or above
White 9% 7%
Black 19% 14%
Asian 14% 10%
Hispanic 13% 11%
Missing 17% 12%
Total 11% 8%
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ALABAMA
Home purchase loan originations in Alabama, 2021.
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 718 2,445 454 279 5,841 9,737
Government-backed 34% 41% 16% 60% 65% 54%
LMI borrowers 25% 24% 21% 27% 24% 24%
LMI neighborhoods 6% 7% 5% 8% 7% 7%
Minority borrowers 14% 13% 13% 11% 15% 14%
Loans in non-rural counties 4,136 19,298 2,843 2,960 31,341 60,578
Government-backed 36% 27% 17% 50% 50% 40%
LMI borrowers 32% 33% 30% 31% 32% 32%
LMI neighborhoods 13% 13% 15% 8% 13% 13%
Minority borrowers 19% 22% 23% 24% 22% 22%
Alabama - total 4,854 21,743 3,297 3,239 37,182 70,315
Government-backed 36% 29% 17% 50% 50% 40%
LMI borrowers 31% 32% 29% 30% 31% 31%
LMI neighborhoods 12% 13% 14% 5% 12% 12%
Minority borrowers 18% 21% 22% 23% 20% 21%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30
% 28
%
L
M
I n
e
i
ghb
o
r
h
o
o
d
s 1
5
% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Among all lenders, 9,737 home
purchase loans were made in rural Alabama. Of those, 54% were government-backed, 24% were to LMI borrowers, 7% were to
LMI neighborhoods, and 14% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
ARKANSAS
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ARKANSAS
Arkansas demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 877 1,295 2,172
Black 158 299 457
Asian 6 39 45
Hispanic White 35 94 129
Other minority 33 85 118
Two or more races 22 48 70
60 and older 299 385 684
Household income less than $40,000 216 280 496
Household income between $40,000
and $99,999
167 280 447
Household income over $100,000 60 156 215
Arkansas population 1,133 1,867 2,999
Arkansas households 442 716 1,158
Number of county observations 55 20 75
Share of branches.
6%
Credit unions
Banks
94%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
3.4%
2.1%
3.9%
1.3%
N/A data unavailable
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
ARKANSAS
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ARKANSAS
Afliated
Mortgage lenders serving Arkansas, 2021.
Area Small bank Large bank
Credit
union
mortgage
company
Non-
depository
All
Rural 23% 24% 14% 2% 36% 526
Non-rural 22% 25% 15% 3% 36% 688
Arkansas - total 24% 24% 16% 3% 33% 760
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural
Arkansas, 2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 26% 22%
Black 39% 31%
Asian 24% 29%
Hispanic 27% 25%
Missing 39% 33%
Total 29% 25%
680 or above
White 9% 7%
Black 18% 13%
Asian 11% 9%
Hispanic 12% 11%
Missing 17% 12%
Total 11% 8%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
ARKANSAS
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
ARKANSAS
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 1,359 3,405 170 220 4,690 9,842
Government-backed 40% 38% 18% 59% 70% 54%
LMI borrowers 30% 29% 12% 32% 31% 30%
LMI neighborhoods 7% 10% 5% 10% 10% 9%
Minority borrowers 11% 11% 10% 7% 10% 10%
Loans in non-rural counties 4,553 10,377 941 985 11,516 28,372
Government-backed 37% 28% 22% 30% 55% 40%
LMI borrowers 29% 30% 26% 25% 34% 31%
LMI neighborhoods 11% 13% 10% 9% 12% 12%
Minority borrowers 18% 19% 15% 14% 20% 19%
Arkansas - total 5,912 13,782 1,111 1,205 16,204 38,214
Government-backed 37% 30% 21% 35% 60% 44%
LMI borrowers 29% 30% 24% 27% 33% 31%
LMI neighborhoods 10% 12% 9% 9% 11% 11%
Minority borrowers 16% 17% 14% 12% 17% 17%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods 15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Home purchase loan originations in Arkansas, 2021.
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Across all lenders, 9,842 home
purchase loans were made in rural Arkansas. Of those, 54% were government-backed, 30% were to LMI borrowers, 9% were to
LMI neighborhoods, and 10% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
GEORGIA
Demographic Rural Non-rural Total
Non-Hispanic White 1,162 4,324 5,486
Black 455 2,789 3,244
Asian 15 395 411
Hispanic White 66 547 613
Other minority 62 369 432
Two or more races 24 189 213
60 and older 424 1,575 1,999
Household income less than $40,000 308 995 1,304
Household income between $40,000
and $99,999
244 1,215 1,459
Household income over $100,000 101 895 997
Georgia population 1,786 8,618 10,404
Georgia households 653 3,105 3,759
Number of county observations 85 74 159
Georgia demographics (thousands).
Share of branches.
16%
Credit unions
Banks
84%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
6.7%
13.3%
11.9%
5.7%
2.3%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
GEORGIA
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 16% 19% 17% 3% 44% 756
Non-rural 19% 21% 21% 3% 36% 1,149
Georgia - total 19% 21% 21% 3% 35% 1,187
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Mortgage lenders serving Georgia, 2021.
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 25% 23%
Black 36% 31%
Asian 30% 29%
Hispanic 22% 20%
Missing 33% 31%
Total 28% 28%
680 or above
White 9% 7%
Black 18% 15%
Asian 15% 10%
Hispanic 12% 10%
Missing 14% 13%
Total 10% 10%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
GEORGIA
Home purchase loan originations in Georgia, 2021.
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 816 3,754 599 1,066 11, 308 17, 54 3
Government-backed 31% 33% 27% 46% 56% 48%
LMI borrowers 18% 17% 15% 12% 19% 18%
LMI neighborhoods 9% 8% 9% 8% 8% 8%
Minority borrowers 13% 13% 16% 20% 17% 16%
Loans in non-rural counties 2,786 29,408 4,604 11,055 95,581 143,434
Government-backed 27% 19% 22% 37% 41% 36%
LMI borrowers 28% 24% 25% 29% 33% 31%
LMI neighborhoods 21% 18% 20% 19% 20% 20%
Minority borrowers 22% 28% 35% 37% 39% 36%
Georgia - total 3,602 33,162 5,203 12,121 106,889 160,977
Government-backed 28% 21% 23% 38% 43% 37%
LMI borrowers 26% 23% 24% 27% 32% 29%
LMI neighborhoods 18% 17% 18% 18% 19% 19%
Minority borrowers 20% 27% 33% 36% 36% 34%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30%
28%
LMI neighborhoods
15% 14
% 19
% 1
5
% 16
% 16
%
M
in
o
r
i
t
y borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Across all lenders, 17,543 home
purchase loans were made in rural Georgia. Of those, 48% were government-backed, 18% were to LMI borrowers, 8% were to
LMI neighborhoods, and 16% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
LOUISIANA
Louisiana demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 469 2,267 2,736
Black 236 1,257 1,492
Asian 4 76 80
Hispanic White 14 143 156
Other minority 18 98 116
Two or more races 13 69 82
60 and older 170 822 993
Household income less than $40,000 145 591 737
Household income between $40,000
and $99,999
91 524 615
Household income over $100,000 41 346 388
Louisiana population 754 3,910 4,664
Louisiana households 278 1,461 1,739
Number of county observations 29 35 64
Share of branches.
13%
Credit unions
Banks
87%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 12 16 1810 14
Statewide
Black
White
Rural
Non-rural
8.1%
18.3%
9.3%
7.9%
3.3%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
LOUISIANA
Mortgage lenders serving Louisiana, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 20% 20% 13% 3% 45% 403
Non-rural 19% 23% 17% 3% 37% 717
Louisiana - total 19% 23% 17% 3% 37% 731
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 27% 22%
Black 36% 30%
Asian 53% 30%
Hispanic 35% 24%
Missing 42% 36%
Total 32% 27%
680 or above
White 9% 7%
Black 18% 15%
Asian 13% 13%
Hispanic 15% 11%
Missing 20% 15%
Total 11% 9%
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
LOUISIANA
Home purchase loan originations in Louisiana, 2021.
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 695 715 158 107 2,621 4,296
Government-backed 26% 35% 27% 36% 70% 55%
LMI borrowers 18% 14% 13% 8% 21% 19%
LMI neighborhoods 19% 16% 18% 7% 19% 18%
Minority borrowers 11% 11% 25% 17% 24% 20%
Loans in non-rural counties 4,974 8,940 1,216 2,088 32,445 49,663
Government-backed 35% 25% 18% 57% 55% 47%
LMI borrowers 26% 25% 20% 30% 34% 31%
LMI neighborhoods 16% 16% 15% 10% 15% 15%
Minority borrowers 20% 23% 29% 46% 28% 27%
Louisiana - total 5,669 9,655 1,374 2,195 35,066 53,959
Government-backed 34% 26% 19% 56% 56% 48%
LMI borrowers 25% 24% 19% 29% 33% 30%
LMI neighborhoods 16% 16% 15% 10% 15% 15%
Minority borrowers 19% 22% 28% 44% 28% 26%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods
15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Across all lenders, 17,543 home
purchase loans were made in rural Georgia. Of those, 48% were government-backed, 18% were to LMI borrowers, 8% were to
LMI neighborhoods, and 16% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
MISSISSIPPI
Mississippi demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 900 790 1,690
Black 624 497 1,122
Asian 9 20 29
Hispanic White 22 31 53
Other minority 30 25 55
Two or more races 15 20 35
60 and older 366 281 647
Household income less than $40,000 303 196 499
Household income between $40,000
and $99,999
209 204 413
Household income over $100,000 83 109 192
Mississippi population 1,600 1,384 2,984
Mississippi households 594 510 1,104
Number of county observations 65 17 82
Share of branches.
12%
Credit unions
Banks
88%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
5 10 15 20
Statewide
Black
White
Rural
Non-rural
11.1%
15.1%
6.5%
3.5%
25
23.2%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
MISSISSIPPI
Mortgage lenders serving Mississippi, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 19% 23% 17% 3% 39% 521
Non-rural 19% 22% 14% 3% 41% 559
Mississippi - total 20% 22% 17% 3% 38% 644
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 24% 24%
Black 37% 32%
Asian 34% 29%
Hispanic 31% 20%
Missing 40% 35%
Total 30% 28%
680 or above
White 8% 8%
Black 17% 15%
Asian 16% 16%
Hispanic 12% 10%
Missing 17% 15%
Total 11% 10%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
MISSISSIPPI
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 812 5,604 231 326 3,816 10,789
Government-backed 45% 42% 28% 53% 68% 52%
LMI borrowers 23% 23% 20% 14% 22% 21%
LMI neighborhoods 16% 10% 13% 10% 13% 11%
Minority borrowers 20% 19% 26% 19% 23% 21%
Loans in non-rural counties 1,579 7,092 804 941 8,569 18,965
Government-backed 34% 39% 34% 62% 64% 49%
LMI borrowers 22% 22% 27% 20% 17% 25%
LMI neighborhoods 10% 7% 8% 4% 9% 8%
Minority borrowers 19% 28% 23% 40% 27% 27%
Mississippi - total 2,391 12,696 1,035 1,267 12,385 29,774
Government-backed 38% 40% 32% 60% 65% 51%
LMI borrowers 22% 24% 19% 18% 25% 24%
LMI neighborhoods 12% 8% 9% 5% 10% 9%
Minority borrowers 19% 24% 24% 34% 26% 25%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods
15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Home purchase loan originations in Mississippi, 2021.
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Among all lenders, 10,789 home
purchase loans were made in rural Mississippi. Of those, 52% were government-backed, 21% were to LMI borrowers, 11% were
to LMI neighborhoods, and 21% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
NORTH CAROLINA
North Carolina demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 1,425 5,050 6,475
Black 473 1,692 2,165
Asian 17 274 291
Hispanic White 104 471 575
Other minority 150 373 523
Two or more races 39 192 231
60 and older 591 1,672 2,263
Household income less than $40,000 393 1,070 1,462
Household income between $40,000
and $99,999
336 1,229 1,565
Household income over $100,000 136 803 938
North Carolina population 2,209 8,056 10,265
North Carolina households 864 3,101 3,965
Number of county observations 54 46 100
Share of branches.
20%
Credit unions
Banks
80%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
3.3%
3.6%
6.4%
2.5%
0.9%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
NORTH CAROLINA
Mortgage lenders serving North Carolina, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 15% 22% 18% 4% 40% 914
Non-rural 17% 23% 22% 3% 35% 1,155
North Carolina - total 19% 23% 22% 3% 33% 1,248
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 24% 22%
Black 34% 29%
Asian 32% 27%
Hispanic 22% 22%
Missing 34% 30%
Total 28% 25%
680 or above
White 9% 6%
Black 15% 11%
Asian 12% 9%
Hispanic 12% 10%
Missing 14% 10%
Total 10% 8%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
NORTH CAROLINA
Home purchase loan originations in North Carolina, 2021.
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 763 4,204 4,634 1,075 13,484 24,160
Government-backed 43% 22% 6% 50% 56% 40%
LMI borrowers 23% 17% 24% 19% 20% 20%
LMI neighborhoods 14% 8% 16% 9% 9% 11%
Minority borrowers 15% 11% 23% 17% 17% 17%
Loans in non-rural counties 2,742 25,499 14,835 5,818 89,783 138,627
Government-backed 26% 13% 9% 36% 34% 27%
LMI borrowers 30% 22% 32% 25% 27% 27%
LMI neighborhoods 22% 16% 24% 18% 18% 18%
Minority borrowers 20% 19% 34% 28% 25% 25%
North Carolina - total 3,505 29,703 19,496 6,893 103,267 162,787
Government-backed 30% 14% 8% 38% 37% 29%
LMI borrowers 29% 22% 30% 24% 26% 26%
LMI neighborhoods 20% 15% 22% 17% 17% 17%
Minority borrowers 19% 18% 31% 27% 24% 24%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods
15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Among all lenders, 24,160 home
purchase loans were made in rural North Carolina. Of those, 40% were government-backed, 20% were to LMI borrowers,
11% were to LMI neighborhoods, and 17% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
SOUTH CAROLINA
South Carolina demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 406 2,791 3,196
Black 292 1,042 1,334
Asian 4 74 78
Hispanic White 15 161 176
Other minority 17 116 134
Two or more races 12 87 99
60 and older 203 988 1,190
Household income less than $40,000 146 588 734
Household income between $40,000
and $99,999
104 659 763
Household income over $100,000 39 386 425
South Carolina population 746 4,275 5,021
South Carolina households 289 1,633 1,922
Number of county observations 20 26 46
Share of branches.
16%
Credit unions
Banks
84%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
5.5%
8.1%
N/A data unavailable
5.2%
3.3%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
SOUTH CAROLINA
Mortgage lenders serving South Carolina, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 12% 22% 15% 4% 47% 597
Non-rural 18% 23% 20% 3% 36% 1,096
South Carolina - total 19% 23% 20% 3% 35% 1,117
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 27% 23%
Black 38% 30%
Asian 23% 32%
Hispanic 22% 24%
Missing 39% 29%
Total 32% 26%
680 or above
White 9% 7%
Black 18% 13%
Asian 14% 11%
Hispanic 14% 11%
Missing 14% 11%
Total 11% 8%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
SOUTH CAROLINA
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 489 1,350 304 300 3,511 5,954
Government-backed 16% 21% 11% 39% 55% 41%
LMI borrowers 16% 16% 20% 19% 26% 22%
LMI neighborhoods 9% 8% 13% 7% 12% 11%
Minority borrowers 9% 12% 24% 18% 20% 17%
Loans in non-rural counties 3,687 17, 40 0 3,295 7,0 45 52,701 84,128
Government-backed 17% 19% 18% 37% 43% 35%
LMI borrowers 26% 25% 26% 32% 33% 31%
LMI neighborhoods 15% 15% 19% 15% 16% 16%
Minority borrowers 10% 14% 22% 21% 22% 20%
South Carolina - total 4,176 18,750 3,599 7, 34 5 56,212 90,082
Government-backed 16% 19% 17% 37% 44% 36%
LMI borrowers 24% 25% 26% 31% 33% 30%
LMI neighborhoods 14% 14% 18% 14% 16% 15%
Minority borrowers 10% 14% 22% 21% 22% 19%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods
15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Home purchase loan originations in South Carolina, 2021.
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Among all lenders, 5,954 home
purchase loans were made in rural South Carolina. Of those, 41% were government-backed, 22% were to LMI borrowers,
11% were to LMI neighborhoods, and 17% were to minority borrowers.
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
TENNESSEE
Tennessee demographics (thousands).
Demographic Rural Non-rural Total
Non-Hispanic White 1,318 3,634 4,952
Black 92 1,022 1,114
Asian 8 109 117
Hispanic White 41 213 254
Other minority 23 115 138
Two or more races 27 106 132
60 and older 397 1,103 1,499
Household income less than $40,000 273 714 987
Household income between $40,000
and $99,999
235 799 1,034
Household income over $100,000 83 495 577
Tennessee population 1,508 5,201 6,709
Tennessee households 590 2,007 2,597
Number of county observations 53 42 95
Share of branches.
Credit unions
Banks
89%
11%
Unbanked rates, 2021.
Percent unbanked
Demographic
0
2 4 6 8 1210
Statewide
Black
White
Rural
Non-rural
5.0%
7.2%
4.5%
2.3%
N/A data unavailable
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
TENNESSEE
Mortgage lenders serving Tennessee, 2021.
Area Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Rural 19% 22% 16% 3% 39% 881
Non-rural 22% 23% 18% 3% 35% 1,200
Tennessee - total 23% 22% 19% 3% 33% 1,274
Southern region - total 29% 19% 23% 2% 26% 2,155
National 30% 15% 31% 2% 22% 4,332
Home purchase loan application denial rates, by credit score, race/ethnicity, rural,
2018 - 2021.
Credit Score Race/ethnicity Rural Non-rural
Below 680
White 26% 23%
Black 39% 32%
Asian 31% 30%
Hispanic 26% 24%
Missing 38% 34%
Total 30% 27%
680 or above
White 9% 7%
Black 19% 14%
Asian 14% 10%
Hispanic 13% 11%
Missing 17% 12%
Total 11% 8%
STATE
CONSUMER FINANCES IN THE SOUTHERN REGION
Consumer Financial
Protection Bureau
Learn more at consumernance.gov
BANKING AND CREDIT ACCESS IN THE SOUTHERN REGION
TENNESSEE
Loan originations Small bank Large bank
Credit
union
Afliated
mortgage
company
Non-
depository
All
Loans in rural counties 1,413 4,007 1,057 1,304 8,147 15,928
Government-backed 25% 35% 20% 56% 55% 45%
LMI borrowers 24% 24% 20% 26% 24% 24%
LMI neighborhoods 14% 11% 10% 12% 12% 12%
Minority borrowers 10% 6% 6% 9% 6% 7%
Loans in non-rural counties 5,428 20,547 4,987 5,192 47,974 84,128
Government-backed 21% 17% 12% 36% 38% 30%
LMI borrowers 24% 24% 27% 31% 29% 27%
LMI neighborhoods 14% 11% 10% 12% 12% 12%
Minority borrowers 16% 15% 16% 15% 17% 16%
Tennessee - total 6,841 24,554 6,044 6,496 56,121 100,056
Government-backed 22% 20% 13% 40% 41% 33%
LMI borrowers 24% 24% 26% 30% 28% 27%
LMI neighborhoods 16% 15% 16% 15% 17% 16%
Minority borrowers 15% 14% 10% 20% 15% 15%
Southern region - total 36,950 163,995 41,132 40,761 423,326 706,164
Government-backed 30% 23% 14% 41% 45% 37%
LMI borrowers 26% 25% 27%
28% 30% 28%
LMI neighborhoods
15% 14% 19% 15% 16% 16%
Minority borrowers 17% 20% 26% 28% 25% 24%
National 207,000 906,000 252,000 205,000 2,808,000 4,378,000
Government-backed 21% 15% 11% 37% 36% 29%
LMI borrowers 31% 25% 28% 29% 30% 29%
LMI neighborhoods 15% 15% 16% 15% 18% 17%
Minority borrowers 16% 22% 19% 27% 27% 25%
Home purchase loan originations in Tennessee, 2021.
Note: The percentages in this table are cell percentages, not row or column percentages. Ex. Among all lenders, 15,928 home
purchase loans were made in rural Tennessee. Of those, 45% were government-backed, 24% were to LMI borrowers, 12% were
to LMI neighborhoods, and 7% were to minority borrowers.
