It's no secret that minorities are more likely than whites to take out high-cost mortgage loans, but a new study finds racial disparities are even more pronounced among middle- and upper-income borrowers. An analysis of loan data by the National Community Reinvestment Coalition suggests that minorities are more likely to get stuck with high-cost loans because they are targeted by lenders, not because they are less creditworthy, the group said. Although it's logical to assume that racial disparities in the prevalence of high-cost loans would decrease at higher income levels -- because wealthier borrowers presumably have better credit scores -- the NCRC study found the opposite was true. In their analysis of loan data collected by the Federal Reserve in 2005, NCRC staff found wealthier borr...
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