(This is Part 2 of a two-part series. Read Part 1.) Last week, I made the point that more than 90 percent of home mortgage transactions involved a two-stage process. The first stage, the development of posted prices that are delivered to loan officers and mortgage brokers, is bias-free. The unequal treatment of minorities occurs in stage 2, where posted prices are converted into the final prices paid by borrowers. A sizeable number of loan officers and brokers charge what the market will bear, and minorities end up paying more because they are more vulnerable. Lenders may commit many sins, but I don't believe that discrimination against minorities is one of them. Wholesale lenders have virtually no control over the markups charged by brokers. While loan officers working for retail lenders ...
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