The New Redlining? Racial Undertones in Subprime Trends
A new study has found racial disparities in the way subprime mortgage loans--which were discussed at length during DMI's last marketplace event--are offered. N.Y.U.’s Furman Center for Real Estate and Urban Policy found racial differences between the New York City neighborhoods where subprime mortgages were common and those where they were rare.
"The 10 neighborhoods with the highest rates of mortgages from subprime lenders had black and Hispanic majorities, and the 10 areas with the lowest rates were mainly non-Hispanic white."...
“It’s almost as if subprime lenders put a circle around neighborhoods of color and say, ‘This is where we're going to do our thing,’” said Robert Stroup, a lawyer and the director of the economic justice program at the NAACP Legal Defense and Educational Fund Inc.