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Study: Multicultural borrowers get highest subprime rates

Center calls for regulation to protect minority home buyers

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African-American and Latino borrowers with the same credit scores as white borrowers are 30 percent more likely to get higher-cost subprime loans, which charge even higher interest rates than most subprime loans, a new study claims. The study, released Wednesday by the Center for Responsible Lending (CRL), a nonpartisan research and policy organization, examined 50,000 subprime loans made all over the country, combining this data with information from an earlier study. "African-American and Latino families are paying a premium for home loans because of the color of their skin," said Hilary Shelton, director of the Washington bureau of the National Association for the Advancement of Colored People, in a teleconference on the CRL report Wednesday. The study concluded that African-American borrowers were 31 percent more likely to receive a higher interest rate on a subprime fixed home mortgage, while they were 15 percent to 16 percent more likely to pay more interest on an adjustable-ra...