Minorities Hit Hard By Foreclosures
The Boston Herald reported January 15, 2008 that a new study shows that the subprime-mortgage crisis will cost black and Hispanic homeowners up to $256 billion," the worst financial hit for minorities in modern U.S. history."
“'The dream that Martin Luther King Jr. once spoke of has been foreclosed,' Boston-based United for a Fair Economy wrote in a report set for release to coincide with [the] 79th anniversary of King’s birth."
Based on previously released data on the subprime meltdown, the study projected "blacks" will lose $71.5 billion to $121.6 billion on high-cost mortgages taken out over the past eight years. Hispanics will forfeit another $75.8 billion to $128.9 billion.
"41 percent of blacks and 32.8 percent of Hispanics who bought homes in Boston or five other major cities in recent years used high-cost loans. By contrast, only 6.9 percent of whites used such mortgages.
"Blacks got 54.7 percent of all high-cost mortgages issued nationwide, even though African-Americans represent just 13.4 percent of U.S. population.
"Even among upper-income buyers, 54.4 percent of blacks and 48.9 percent of Hispanics used high-cost loans. By contrast, just 16.4 percent of higher-income white buyers received such loans."
An industry spokesperson told the Herald that she rejects the idea that discrimination is wide spread.
Comments