Lenders Found Stricter on Minorities: The nation’s...
From Times Staff and Wire Reports
Lenders Found Stricter on Minorities: The nation’s mortgage lending system appears to be stacked against minority neighborhoods, and racial stereotyping by bank officers contributes to the problem, according to a study released by the Federal Home Loan Mortgage Corp. Freddie Mac conceded what fair housing advocates and consumer groups have long argued: Applicants in minority neighborhoods have been denied home loans at a higher rate than applicants in non-minority neighborhoods. Government figures for 1988 “consistently demonstrate a lower mortgage acceptance rate in minority neighborhoods, regardless of their incomes,” the study said.
