Study: Evidence of mortgage bias against Hispanics

February 13, 2009
A newly released report is saying that mortgage lending disparities against Hispanics, blacks and other minorities in the Minneapolis-St. Paul area occurred even among the high-income earners, and apparently played a role in the area's ongoing subprime mortgage crisis.
     Among other things, the study, released this week by the Institute on Race and Poverty at the University of Minnesota's Law School, shows that Hispanics, blacks and Asians were more likely than whites to endure loan-application rejections – and more likely to receive predatory subprime loans -- regardless of their income.
     Most strikingly, the report, which examined nearly every single loan application processed in the Twin Cities from 2004 to 2006, found that the requests for purchases and refinances from high-income minorities were denied more frequently than those from low-income whites.