Chicago, IL – July 23, 2012 – (RealEstateRama) — Leading community organizations report evidence of a two-tiered mortgage market characterized by high rates of government-backed loans made both to borrowers in communities of color and to borrowers of color in their new report, “Paying More for the American Dream VI: Racial Disparities in FHA/VA Lending.”
In a briefing tomorrow, researchers from the Paying More for the American Dream collaborative will explain the findings and recommendations of the report and answer questions on its implications.
Please register for the briefing to receive call-in information.
Briefing on Paying More for the American Dream VI: Racial Disparities in FHA/VA Lending
Tuesday, July 24, 2012 from 1:00 PM to 2:00 PM (CT)
RSVP for call-in information
Read about the report in the Wall Street Journal: Report Raises Questions Over Racial Lending Disparities
Read about the report in Bloomberg: Racial Disparities Persist In Mortgage Industry, Report Finds
Data from home mortgage loans originated in seven US cities in 2010 show that black and Latino borrowers and borrowers living in communities of color received government-backed loans (“GBLs”)—insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA)–significantly more often than did white borrowers. Borrowers who purchased homes in communities of color received government-backed loans twice as often as did borrowers in predominantly white communities. Homeowners in communities of color received government-backed refinance loans more than three times as often as did homeowners in predominantly white neighborhoods.