Blacks And Hispanics Are Less Likely To Be Approved For A Mortgage Do you think minorities are less likely to be approved for a mortgage or loans from a bank? According to The New York Times this discriminatory act is nothing new most communities… In 2014, Hudson City Savings Bank, New Jersey’s largest savings bank approved 1,886 mortgages in the market that includes New Jersey and sections of New York and Connecticut, federal mortgage data show. Only 25 of those loans went to black borrowers. Hudson, while denying wrongdoing, agreed last month to pay nearly $33 million to settle a lawsuit filed by the Consumer Financial Protection Bureau and the Justice Department. Federal officials said it was the largest settlement in the history of both departments for redlining, the practice in which banks choke off lending to minority communities. Banks normally try to avoid borrowers who seem likely to default on their loans, but some stepped over the line, officials say, excluding entire communities and the creditworthy people who live in them. In 2014, black people held 5.2 percent of the nation’s home loans, compared with 8.7 percent in 2006, according to the Federal Reserve Bank. Hispanics have struggled to regain lost ground as well, accounting for 7.9 percent of home loans in 2014, compared with 11.7 percent in 2006. Federal and state officials said it was impossible to determine how widespread discriminatory lending had become. They believe a vast majority of banks are operating legally, but recent lawsuits have revealed striking disparities. Discuss.
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Race Matters: Study Shows Blacks And Hispanics Are Less Likely To Be Approved For A Mortgage Than White People
