Minority borrowing hits 14-year low

Blacks and Hispanics are smaller portion of the market than they were in 2000

New York /
Sep.September 28, 2014 05:00 PM

The share of mortgages lent to minority borrowers has fallen to at least a 14-year low, according to federal data.

Minority borrowers’ share of the mortgage market has been shrinking ever since the collapse of subprime lending, and they continued to lose ground to white borrowers through 2013, according to Bloomberg News.

Minorities tend to have both less savings and lower credit scores than whites, and advocates say that they have been hit hardest by tight-fisted lending policies. And those fair-lending advocates and civil-rights groups are now urging the government to change how creditworthiness is determined to give blacks and Hispanics a better shot at buying a home.

“These numbers are a wake-up call that the housing market is a major driver of the economy and it can’t be a vibrant market when so many new households are excluded from it,” Jim Carr, a former Fannie Mae executive who is now a scholar at the Opportunity Agenda, a New York-based organization that works on racial equity issues, told Bloomber News. [Bloomberg News]Christopher Cameron


Related Articles

arrow_forward_ios
(Getty)
Mortgage applications to buy homes rise as rates drop below 6.5%
Mortgage applications to buy homes rise as rates drop below 6.5%
From left: Fannie Mae's Hugh Frater and Freddie Mac's Michael DeVito
Government to back home loans over $1M
Government to back home loans over $1M
(Getty/Illustration by The Real Deal)
TRD Pro: 7% mortgage rates are not so bad
TRD Pro: 7% mortgage rates are not so bad
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Borrowers are back: Mortgage applications rise
Borrowers are back: Mortgage applications rise
(Illustration by The Real Deal with Getty Images)
How to sell a building today: Package it with cheap debt
How to sell a building today: Package it with cheap debt
Rocket Mortgage CEO Bob Walters (Getty)
Rocket Mortgage looks to pivot as rates rise, refis dry up
Rocket Mortgage looks to pivot as rates rise, refis dry up
(Photo Illustration by The Real Deal with Getty)
Mortgage rates top 7% in 21-year high, tank applications
Mortgage rates top 7% in 21-year high, tank applications
Mortgage applications plunge 14%
Mortgage applications plunge 14% in a single week
Mortgage applications plunge 14% in a single week
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...