Predatory Lending Is Yet Another Type Of United States Housing Discrimination

Predatory Lending Is Yet Another Type Of United States Housing Discrimination

Over five million families that are american their houses to foreclosure throughout the Great Recession, with minorities struck particularly hard by the crisis. Blacks and Hispanics faced foreclosure at a level which was dual compared to white households, based on a 2011 report through the Center for Responsible Lending, with devastating effects for minority and built-in areas. The ensuing destruction of minority wide range erased years of progress at narrowing racial wide range gaps—according into the Pew Research Center, the median white home now has 13 times the wide range regarding the median black colored home (the gap that is largest since 1989), and 10 times the wide range of this median Hispanic home (the biggest space since 2001).

A working paper released previously this week by the nationwide Bureau of Economic Research sheds light on a single component that contributed to these race-driven styles: high-cost loans. The researchers—Patrick Bayer, Fernando Ferreira, and Stephen L. Ross—compared the rates from which minority and non-minority borrowers received mortgages that are high-costpopularly known as “subprime mortgages”). Continue reading “Predatory Lending Is Yet Another Type Of United States Housing Discrimination”