Housing Wire has story HERE reports on Memphis city and county government lawsuit against Wells Fargo, alleging that minorities were steered into sub prime loans. (Story calls this "reverse redlining"). Lawsuit alleges that minorities were steered into these high profit, high cost loans even though borrowers may have qualified for FHA or prime loans.
Story also includes references to other studies on minority home loan discrimination.
Federal Reserve Bank/Columbia Business school study HERE says (with some caveats) that for adjustable rate loans there was no evidence of adverse pricing for minorities and in fact pricing may have been better for minorities. Center for American Progress study HERE highlights minority/white disparities in receipt of high cost loans at different banks.
Originally created and posted on the Oregon Housing Blog.
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