*A new study by the National Community Reinvestment Coalition (NCRC) charges that African American and Hispanic borrowers have been targeted with risky subprime loans by financial institutions nationwide.

As a result, says the study, minority home owners were more likely to go into foreclosure. According to the NCRC, the steering of minorities into the risky, high-cost subprime loans “contained a clear racial component not explained by objective underwriting criteria.”

John Taylor

“Private market players, from brokers to mortgage lenders to Wall Street, created a lending pipeline typified by risky, abusive and unfair practices,” said John Taylor, president and CEO of NCRC. “It is a shameful condition that borrowing while black or Latino remains a hazard in this country. Without strong regard for the risky characteristics of the products they were peddling, lenders and Wall Street chose short-term profits over fair and prudent lending. These risky products were targeted to certain communities at first, and then spread elsewhere.”

 

The complete NCRC report is available online at www.ncrc.org. (Taylor Media Services – www.blacknewsjournal.net)