The Real Deal Miami

Feds say minorities don’t pay higher mortgage rates

April 02, 2009 11:43AM

According to a New York
Federal Reserve Bank study, minority borrowers did not pay higher
interest rates for subprime mortgages, contradicting findings that
indicated minorities were targets of expensive credit. The report was
based on findings from more than 75,000 adjustable-rate subprime loans.
The study merges data on race, ethnicity and gender of borrowers as
reported by lenders under the Home Mortgage Disclosure Act with data on
mortgage pricing and risk variables like credit scores.