U.S. Data Reveal Loan Rate Disparity (on racial lines)

[Moloch]

WASHINGTON — African Americans and Hispanics are far more likely to receive high-cost home loans than whites — and although much of the disparity can be tied to economic factors, the reason cannot be fully explained by existing data, according to a government analysis released Tuesday.

The study by the Federal Reserve examined an estimated 80% of all home loans last year. It found that 32.7% of African American borrowers, and 20.3% of Hispanic borrowers, had high-priced loans.

By comparison, 8.7% of white customers and 5.9% of Asian Americans had these higher-cost mortgages, also known as sub-prime loans.

The report said that economic factors, such as the income level of the borrower, were one factor in the disparity.

http://www.latimes.com/business/la-fi-loans14sep14,0,3907967.story?coll=la-story-footer&track=morenews

[JNelson6563]

1. It's called "predatory lending"

and the next time large financial corps report big profits rmember much of it is off the backs of the working poor.

Julie

[patcox2]

5. I see, so its pro-asian bias at work?

Right, its pro-asian racism that prompts lenders to treat them better than caucasians?

[JNelson6563]

6. Um, what?

Not sure how you got that from what I wrote....

[RedCloud]

7. Someone doesn't know population stats worth a poop.

Asians favored over whiteys? Take a look at how many whiteys there are and please do pontificate before trying to dispel JNelson's valuable message about the deliberate use of racism against those with more melanin.

[Name removed]

9. Deleted message

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[acmejack]

2. Why is this not a surprise?

America land of equal opportunity. Just be white, moneyed, and of the correct political persuasion. Oh, and it helps to be "saved".

[RawMaterials]

3. wonder what the fico scores are? n/m

[fasttense]

4. Surprise, surprise surprise

Lets see, during the last five years the infant mortality rate for black babies has doubled. Thousands of blacks were systematically prevented from voting during the 2004 election. Thousands of poor black folks were left to drown in New Orleans and now they are giving them the shaft on loans. Bush really loves black people.

Does anyone really wonder why the KKK and Nazi groups align themselves with repukes.

[bribri16]

8. Let me take you back to the 80's when so many foreclosures occured

New England and Texas among several other places was particularly hard hit during the Reagan years when so many UNCREDITWORTHY whites were given mortgages that they couldn't qualify for by using all kinds of devious methods, counting all kinds of unverifiable incomes. At the same time, many minorities, specifically African-Americans had to meet much stiffer standards to qualify for mortgage loans, eventhough, all stats show that African-Americans are among the LEAST LIKELY to lapse on their mortgage payments. I remember seeing a special broadcast on this on one of the major networks at the time. African-Americans are among the group most likely to pay their mortgage if nothing else and are therefore good mortgage risks if they can qualify for the basics. Yet they are still the most discriminated against by red-lining, charging excessive interest rates, and using discretionary qualifications against them. As a result of the bad loan to the majority group, NE had a pretty rough time during the 80's. Also, the banks lost a lot of money assests due to the crackdown of drug money laundering at that time.