Paying More for the American Dream

The Woodstock Institute is a national research group that studies mortgage lending in poor neighborhoods and develops and promotes ways to bring economic resources to lower-income and minority families and communities. They recently released a distressing report on the lending disparities between minority groups and white borrowers. A quote from the report:

demonstrates that African-American and Latino borrowers are paying more than their white counterparts for home purchase loans in six geographic areas: Boston, Charlotte, Chicago, Los Angeles, New York, and Rochester. This review of federal lending data shows dramatic disparities. For example, in New York, African-American borrowers were five times more likely to receive higher-cost home purchase loans than were white borrowers

It seems clear that while the overall numbers of foreclosures remain relatively low - less than 2% of all outstanding mortgages - the conditions in low-income, mainly minority nieghborhoods are detoriating rapidly due largely to the accerating foreclosures rates that can be directly associated with the higher cost home purchase loans these people were sold.

Click here, to read the full report.

Posted at March 28, 2007 03:26 PM

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The Woodstock Institute is a national research group that studies mortgage lending in poor neighborhoods and develops and promotes ways to bring economic resources to lower-income and minority families and communities. They recently released a distressing report on the lending disparities between minority groups and white borrowers. A quote from the report: demonstrates that African-American and Latino borrowers are paying more than their white counterparts for home purchase loans in six geographic areas: Boston, Charlotte, Chicago, Los Angeles, New York, and Rochester. This review of federal lending data shows dramatic disparities. For example, in New York, African-American borrowers were five times more likely to receive higher-cost home purchase loans than were white borrowers It seems clear that while the overall numbers of foreclosures remain relatively low - less than 2% of all outstanding mortgages - the conditions in low-income, mainly minority nieghborhoods are detoriating rapidly due largely to the accerating foreclosures rates that can be directly associated with the higher cost home purchase loans these people were sold. Click here, to read the full report.