Minorities Get The Worst Loans

Were you cursed with skin a shade darker than a gleaming opalescent white? Are your nethers nutmeg or, worse yet, ebony? Well, the honkies here at the Consumerist love you… but unfortunately, loan companies don’t. Also, you can’t have any of our money.

The Center of Responsible Lending recently did a study of 50,000 subprime loans. What they found was that Latinos and African-Americans were often given disproportionately high interest rates when compared to their cracker peers. In fact, they are a third more likely to get a high-priced loan than Anglo-Saxon borrowers with the same credit profile.

Good quote summarizing why this is a big problem, besides just being racist: “[The study findings show] that it’s even harder for families of color to build equity for their future; it’s even harder to send their children to college; and it’s even harder to build wealth for the next generation.” Self-perpetuating generational poverty is a much bigger problem than mere prejudice; unfortunately, they all too often go hand in hand.

Study Disputes Lenders’ Excuses for Charging Blacks and Latinos Higher Rates [Consumer Affairs]

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  1. Ben Popken says:

    Isn’t that the Michael Jacskson imposter?”

  2. Jamaicanbwoydre says:

    So the “Man” IS trying to keep us down!!! And i would hardly like to think of my skin color as a curse.

  3. drsmith says:

    I would question the distribution of wealth among those sampled. *if* it’s generally true in society that latinos and african americans have worse credit than their white counterparts, it would logically follow that they would get sub-prime loans. Racism/prejudice doesn’t have to play any part in the application process to yield these results.

    By the way – if you want to use the term cracker perjoratively in your posts, you may want to consider giving equal opportunity to latinos and african americans. Just because white people are the majority doesn’t mean it’s acceptable to resort to prejudice name calling. I realize it was meant to be funny, but it sets a bad example. Either do it all the time for everyone, or just don’t do it at all.

  4. thrillhouse says:

    here’s an idea: Avoid sub-prime lending! Black, white, green, purple. Get a job, budget your money, save up and pay cash. If you need to re-finance your home: look into something called “manual underwriting”