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Several class action mortgage discrimination claims have been filed against lenders across the country, alleging that those lenders disproportionately targeted minorities for high cost, high risk subprime lending, which has resulted in disproportionately higher rates of default and foreclosure for minority African American and Hispanic borrowers.
African American and Hispanic mortgage holders are 1.5 to 2.5 times more likely to pay 9% or more on interest. Krivo and Kaufman calculate that the African-American/White gap in mortgage interest rates is 0.39%, which translates to a difference of $5,749 on the median home loan payment of a 30-year mortgage of a $53,882 home.
You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. ( March 2017 ) ( Learn how and when to remove this message ) Legal scholars and practitioners generally discuss laws that affect housing within the context of real property , landlord–tenant law , mortgage law , laws that forbid housing ...
The enforcement agencies cited additional evidence of discrimination in Hudson City's broker selection practices, noting that the bank received 80 percent of its mortgage applications from mortgage brokers but that the brokers with whom the bank worked were not located in majority African-American and Hispanic areas.
Traditionally used to determine discrimination in housing and mortgage lending, the research methodology involves the use of pairs of testers or mystery shoppers, representing test and control cells. Control cells usually comprise non- protected classes of consumers and test cells comprise protected classes of consumers under the Fair Housing Act .
The terms equal housing lender and equal opportunity lender are synonymous and refer to all banks insured by the Federal Deposit Insurance Corporation in the United States. . Such banks are prohibited from discriminating on the basis of race, color, religion, national origin, sex, handicap, or familial sta
The Equal Credit Opportunity Act of 1974 and Community Reinvestment Act of 1977 helped with discrimination in mortgage lending and lenders' problems with credit needs. [20] The Fair Housing Amendments Act of 1988 was passed to give the federal government the power to enforce the original Fair Housing Act to correct past problems with ...
HOLC is often cited as the originator of mortgage redlining. [11] [12] HOLC maps [13] generated during the 1930s to assess credit-worthiness were color-coded by mortgage security risk, with majority African-American areas disproportionately likely to be marked in red indicating designation as "hazardous."