Differences between mortgages offered to minorities and mortgages offered to whites

Mortgages for Minorities: How much is too much?
The Fed has released several reports over the last few years that express, in detail, the differences between mortgages offered to minorities and mortgages offered to whites.

While the industry tries to maintain that they offer fair business practices, the results don’t support this at all. Minorities are more likely to be denied a home loan, often pay higher interest rates than whites and frequently must provide a larger down payment. The gap between minority home owners and whites continues to narrow at a snail’s pace, but steps are being taken to help change the situation.

Loan Rejection

African-Americans and Latinos suffer a large percentage of rejections when applying for mortgages, research suggests. Latinos have the highest denial rate, nationwide, with African-Americans coming in 6th, behind Latinos and other minorities. Lenders say it has nothing to do with minority status and much more with credit ratings and debt loads that are not taken into account by the surveys.