Mortgage rejection rates higher in 2006 by Delia Cruceru

In a new Federal report it is showed that companies that lend money continue to charge black and Hispanic homebuyers higher interest rates more often than white buyers. In 2006 almost 53 percent of blacks received high interest rates on mortgage loans, 46 percent Hispanics compared to only 18% of whites. They also found that the denial rate for rate for all home loans was 29 percent last year, up from 27 percent in 2005. "The incidence of higher-priced lending for blacks and Hispanic white borrowers is notably greater than for non-Hispanic whites," the Federals Reserve said in the report. "Similar patterns are shown in racial and ethnic differences in denial rates." In the analysis Federals said that minorities like Hispanics or blacks were far more likely than whites to be denied outright when they applied for mortgage loans. "Irresponsible lending practices have placed working families, minorities and more recently an increasing number of middle-income borrowers at risk of losing their homes," said John Taylor, president of the National Community Reinvestment Coalition. Surging foreclosures and the delinquency rates on subprime mortgages will hurt more the Hispanics and black people according to consumers advocates. The report showed that the areas with most delinquency rate are in the Midwest: Ohio, Indiana and Michigan, the south Atlantic region, the Gulf Coast and portions of Texas, Oklahoma and Colorado.

related story: http://news.yahoo.com/s/ap/20070912/ap_on_bi_ge/mortgage_discrimination;_ylt=AljRY9u.GVZFgynf6tA4AU6s0NUE

by Delia Cruceru for PocketNews (http://pocketnews.tv)

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