Study: Blacks, Hispanics 'Pay Premium' For Home Loans

[Kadie]

Study: Blacks, Hispanics 'Pay Premium' For Home Loans
Group Says Loan Sellers Charge Minorities Higher Rates

POSTED: 8:46 am PDT June 1, 2006
UPDATED: 9:01 am PDT June 1, 2006

CHARLOTTE, N.C. -- Black and Hispanic home buyers are more likely to pay high mortgage rates than white borrowers with similar credit ratings and income levels, an advocacy group found.

The Center for Responsible Lending said either loan sellers are charging higher rates to the minority customers or those borrowers are being steered to loan sellers that specialize in higher rates.

Using an industry database, the Durham-based nonprofit center compared credit scores, down payments and other financial information on about 177,000 loans made in 2004 by "subprime" lenders - companies that charge higher interest rates than banks. The lenders provided the borrowers' income and race.

The study, released Wednesday, found that blacks were 29 percent more likely to pay a high interest rate on a fixed-rate home purchase loan. A Hispanic borrower also was more likely to pay a high rate, it found.

more...
http://www.kcra.com/money/9304843/detail.html

[BlooInBloo]

1. And in other breaking news, dog bites man.

There's only one group of people in this country that is characteristically surprised by this sort of thing.

They're surprised over and over and over and over.

One would think they'd catch on at some point.

But no - the continue to be surprised over and over and over and over again.

It's enough to make a person wonder whether that surprise can possible be genuine.

[Laughing Mirror]

3. They have to keep reassuring that dwindling group of people

that, even though they themselves will be a minority in the not-too-distant future, things are, all in all, still working in their favor.

Surprise surprise.

[slackmaster]

2. Subprime lenders intentionally target minorities

As BlooInBloo pointed out, this is not new news.

Here is what HUD had to say about it a few years ago:

http://www.hud.gov/offices/fheo/lending/subprime.cfm

[cboy4]

4. I always love those 60 Minutes-type programs where the black

person walks in and is told no apartments are for rent, and then a white person walks in and is told there are plenty of units available!

Unbelievable!!