Minorities at Disadvantage for Mortgages

Wednesday, November 29, 2006 Download  RSS  Short URL  Share

A new report by a housing activist group concurs with national studies that show minorities are at a disadvantage when it comes to obtaining mortgage loans. And, the group says, the racial and ethnic gap is especially pronounced in the Cleveland area. ideastream's Bill Rice reports.

The study unveiled Monday by the Housing Research and Advocacy Group is based on federal lending statistics that Jeffrey Dillman, the group’s director, says reveal disturbing racial disparities. For instance, Dillman says, statewide, high-income African Americans were denied home loans at a slightly higher rate than low income whites - 27% vs. 25%. But in the Cleveland Metro Survey Area that gap is far wider, he says: upper-income blacks were denied loans more than 30% of the time, vs. only 21% for low income. And there are even wider gaps with regard to high cost vs. lower cost loans. Dillman blames such disparities on declining regulation of the lending industry, which hr says has allowed unscrupulous or fraudulent lenders to prosper.

Many hope a new lending law passed last summer by the state general assembly will lead to fairer lending practices and fewer foreclosures. Bill Rice, 90.3.