Subprime Mortgage Lending
Today, there is strong evidence that subprime loans (loans offered to people with weak credit) are targeting people of color regardless of income and credit history.
The subprime market has rapidly increased, expanding from $35 million in 1994 to $640 billion in 2006 and now accounts for over 20% of the mortgage market. According to the Center for Responsible Lending (CRL), 2.2 million subprime loans have been made in recent years – loans which have or will end in foreclosure. A recent CRL study finds that African Americans and Latinos are nearly one-third more likely to receive a subprime loan than are whites.
Percentage of Subprime Mortgages
Source: Home Mortgage Disclosure Act; Black Enterprise (June 2006)
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