Industry NewsMortgage

Minorities often pay higher rate for mortgages

Fed report: Loan data reveal patterns, but not what causes them
Published on Sep 12, 2006

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Blacks and Hispanics were more likely than whites to take out higher-priced home loans in 2005, while Asians were slightly less likely to borrow money on such terms, according to a Federal Reserve report.

According to data lenders provide to the government, 54.7 percent of African-American borrowers took out "higher-priced loans," compared with 17.2 percent of whites in 2005. Hispanics took out higher-priced loans 46.1 percent of the time, compared with 16.6 percent for Asians.

Minorities were also more likely to be turned down for loans then whites, the report found ...