Fed: Minorities got worst of boom and bust

Failed lenders were more likely to charge high rates

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A Federal Reserve Board analysis of millions of home loans suggests minorities were more likely to pay high interest rates when they took out a loan during the housing boom, and then had a harder time getting a loan when the boom turned to bust.

The Fed study reveals that, as a group, nearly 200 independent mortgage companies that failed last year were much more likely to make higher-priced loans to minorities, and that minority communities have been hit hardest by cutbacks in lending during the credit crunch.