New study shows minorities targeted for risky loans

Study of DC area loans reveals racial component to lending and
foreclosure unexplained by objective underwriting criteria

WASHINGTON, DC — As financial reform works its way
through the Senate, a new study by the National
Community Reinvestment Coalition (NCRC) indicates that subprime
lending and subsequent resulting foreclosures were led by the private
market and contained a clear racial component not explained by
objective underwriting criteria. African American and Latino borrowers
were more likely to receive a subprime loan, and to go into
foreclosure, than similarly situated white homeowners, controlling for
credit risk and other borrower, neighborhood and loan characteristics.

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