Foreclosures hit Hispanics and blacks hardest
LOS ANGELES (KABC) -- Hispanic and black lenders have been disproportionately affected by the foreclosure crisis according to a new study released Tuesday.
The Center for Responsible Lending, which conducted the study, found that those two communities combined represented the majority of all foreclosures in California between 2006 and 2009. Almost half of those foreclosures belonged to Hispanic lenders.
The nonprofit group analyzed more than 600,000 foreclosures in the state and found that black and Hispanic borrowers were more likely to receive higher-cost subprime mortgages with loan terms that typically increased the risk of default, compared with safer loans made to Caucasians.
"Dishonest brokers peddled their high-cost loans, steered our families into risky products designed to fail, and now Latinos and all of California are paying the price," said Janet Murguía, President and CEO of the National Council of La Raza in a news release.
While white borrowers made up half of all home loans granted during the period studied, they accounted for only a third of home foreclosures. The findings also suggested that more than three-quarters of all California foreclosures were on relatively modest properties, not oversized luxury homes.
california, housing market, loan, real estate, california news
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