Alan Zibel recently reported that a high percentage of blacks and Hispanics are paying a high percentages on their mortgages. (All the more reason to look at FHA options).
WASHINGTON (AP) _ A disproportionately large percentage of mortgages made to blacks and Hispanics last year met the government’s definition of “high cost” loans, a new study said.
The report, released Oct. 4 at an industry conference in Arlington Va., analyzed nationwide mortgage data for 2006 and reached conclusions similar to those of another study published by the Federal Reserve last month.Advocacy groups say mortgage discrimination has contributed to the current crisis in lending to borrowers with weak, or subprime, credit, in which a growing number of families are losing their homes.
The study, sponsored by Richmond, Va.-based mortgage insurer Genworth Financial, concluded that 48 percent of home loans given to blacks and nearly 42 percent of loans given to Hispanics last year met the government’s definition of “high-cost “loans. That compares with 18 percent for whites and more than 24 percent for the overall population.