To figure out why banks disproportionately reject minorities for loans, five Federal Reserve banks are launching a project to identify where bias is most likely to occur in the lending process.

Because Home Mortgage Disclosure Act data have consistently shown that lenders turn minorities down for loans twice as often as they do whites, the Fed banks are bringing together lenders, real estate agents, insurers, and appraisers to review each step in the home-buying process.

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