Industry NewsMortgage

Minorities often pay higher rate for mortgages

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

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. There was little difference in loan pricing among borrowers by sex, with women buying a house on their own showing a lower incidence of higher-priced loans than sole male borrowers. At 24.6 percent, higher-priced loans also made up a greater percentage of all home loans in 2005, compared to 11.5 percent in 2004 -- a 13.1 percent increase, the report found. Because the Fed defines "higher-priced loans" according to a t...