REALTOR® Magazine-Daily News-Study: Minorities Issued More Subprime Loans

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Daily Real Estate News | October 5, 2007 | Study: Minorities Issued More Subprime Loans
Nearly half of home loans given to African-Americans and nearly 42 percent of loans given to Hispanics last year met the government's definition of high-cost loans, according to a study by mortgage insurer Genworth Financial.

That compares with 18 percent for whites and more than 24 percent for the overall population.

The analysis, which excludes refinances and second mortgages, uses the Federal Reserve's definition of high-cost loans: mortgages whose rates are at least 3 percentage points above comparable Treasury securities, a category including most subprime loans.

The survey also showed that from 2005 to 2006 there was a 21 percent decline in the number of Asians buying a home, 5.2 percent decline among Hispanics, but a 0.6 percent increase among African Americans.

Source: Associated Press (10/05/07)