Study Finds Racial Disparities In Lending

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The National Community Reinvestment Coalition has released a follow-up report to one done in April on the 2004 Home Mortgage Disclosure Act data, and has found even greater pricing disparities by race, income and gender. The follow-up report focused on first mortgage loans and subprime lending, and used a larger sample.

The updated report shows that 17.3% of the conventional loans (home purchase, refinance, and home improvement loans) received by Hispanics were subprime whereas 11.1% of the loans received by Whites were subprime during 2004, compared with 15.3% for Hispanics reported in the earlier study. For minorities and immigrants, the price of first-time homeownership is likely to be higher than for their white counterparts, with 28.7% of the conventional home mortgage loans issued to African Americans coming in as subprime in contrast to 7.8% for whites. Similarly, 15.4% of Hispanic home loans were subprime and 12% of Native American home loans were subprime.

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