Industry News

Growth in home loans to minorities outstrips whites in most areas

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Immigration and lower home-ownership rates among African Americans and Hispanics make minority buyers the fastest-growing segment of new home-purchase mortgages, according to a study of government loan data. The study, "2005 Minority Home Buying Surge," found the percentage increase for all minority loans in high-volume areas was three times greater than for white households. Minority borrowers had a greater percent change in mortgages originated in 320 of 388 metro areas analyzed. "We are now witnessing the positive effects of the growth in immigrant households who want to own a piece of the American Dream," said Michael Taliefero, managing director of ComplianceTech, in a press release. "While immigration is part of the story, the lower home-ownership rates among African Americans and Hispanics represent pent up mortgage demand that is starting to be filled." ComplianceTech prepared the study for Genworth Mortgage Insurance, focusing on home-purchase mortgages in high-volume metro...