New Report Details Experience of Minority Women in the Subprime Lending Market and Disparate Treatment by Race
In many instances, disparities by race widened as income levels increased, one of many indicators that discrimination remains a reality in home mortgage lending, as reports by the Federal Reserve and others have documented.
''The financial crisis has demonstrated that the key to a robust and sustainable economy is the inclusion and full participation of all households in an efficiently functioning and responsible financial system,'' said John Taylor, president and CEO of the National Community Reinvestment Coalition. ''African Americans and Latinos continue to be treated unfairly when receiving a loan. This report documents troubling lending disparities that threaten to undermine the wealth and security of the most financially vulnerable Americans.''
Dr. Avis Jones-DeWeever of the National Council of Negro Women adds, ''In an era of change, this report shows that there is still much more work to be done. Given the importance of homeownership to families and entire communities, it becomes clear that we simply cannot rest until every person, regardless of race or gender, is treated fairly at every stage of the mortgage lending process. Results like those uncovered by this study make it painfully clear that for far too many, fair treatment in mortgage lending remains an elusive and still unfulfilled goal.''
The report examined data collected under the Home Mortgage Disclosure Act for the year 2007 (the latest year for which data is publicly available) for 100 of the largest Metropolitan areas (MSAs) in the country. The report includes a ranking of MSAs by worst overall disparities. Among the findings:
• Middle- and upper-income African-American females were at least twice as likely to receive high-cost loans as middle- and upper-income white females in more than 84 percent of the MSAs
• Low- and moderate- income African-American females were at least twice as likely to receive high-cost loans as low- and moderate-income white females in 70 percent of the MSAs
• Middle- and upper-income Hispanic females were at least twice as likely to receive high-cost loans as middle- and upper-income white females in almost 62 percent of the MSAs
• Low- and moderate-income Hispanic females were at least twice as likely as low- and moderate-income white females to receive high-cost loans in 32 percent of the MSAs.