Saturday, March 13, 2004

Hispanics twice as likely as whites to get higher mortgage interest rate

"[In 2002, local] Latinos were 1.8 times more likely than white homeowners to receive a sub-prime loan."

"Sub-prime loans are most often made to lower-creditworthy buyers, and they carry higher interest rates and fees. They can sometimes charge rates twice as high as conventional mortgage loans."

"ACORN researcher Valerie Coffin attributed the disparity to factors such as abusive lenders targeting minorities and less access to credit from prime lenders for low-income people and minorities."

"Scott Ractliffe, a senior vice president at NBC Mortgage in Nashville, said the gap doesn't necessarily reflect racial discrimination by lenders. Ractliffe is past president of the Nashville Mortgage Bankers Association."

"'It's not necessarily by race, but probably by income range — and consumers in the lower-income range tend to use those sub-prime products more,' he said."

The Tennessean, Nashville Business Journal

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