Study Says Minorities Pay More For Mortgage Loans

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(Sacramento, CA)
Wednesday, March 30, 2005

The study says that even though minorities have had an easier time qualifying for home loans in recent years, they’re usually charged more for mortgage services.

"We find that African Americans and Latinos were two to four times as likely to get a higher cost loan than whites with the very same incomes," says Kevin Stein of the nonprofit San Francisco-based California Reinvestment Coalition, "so, that’s pretty shocking."

Stein says many of the lenders made home loans that cost African American and Latinos more than 2-and-a-half-times as much as most other bank customers. The study looks at lending patterns from two years ago of several major banks including Washington Mutual, Wells Fargo and Citigroup.