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The
study found that middle-class and upper income blacks
in 167 metropolitan areas were at least twice as likely
as whites with similar incomes to receive loans with
high rates. By comparison, there were 70 metropolitan
areas where low-income blacks faced a similar likelihood
of receiving above-market rates.
Low-income
blacks in all areas were more likely to have pricey
loans than whites with similar incomes.
The
report uses the Federal Reserve's definition of high-cost
loans:mortgages whose rates are at least 3 percentage
points above Treasury securities. That definition includes
most subprime loans given to people with weak credit
records.
The
study points to the persistence of discrimination against
minorities, said John Taylor, chief executive of the
Washington-based group, which has been pushing hard
this year for legislation to restrict what it says are
widespread abusive lending practices.
``Certainly
discrimination has not disappeared in this country,
by any stretch,'' he said.
The
Mortgage Bankers Association criticized the report,
saying it focuses on race instead of factors that lenders
consider when deciding whether to make loans, such as
borrowers' debt levels and the amount of money they
can provide as a down payment.
``This
study ignores these other important credit variables
in order to make a broad generalization and seeks to
identify an overly simplistic answer to a much more
complex issue,'' Jay Brinkmann, the trade group's vice
president of research and economics, said in an e-mailed
statement.
The
NCRC report found similar trends among Hispanics. Middle
class and upper income Hispanics in 75 metro areas were
at least twice as likely as whites with comparable incomes
to sign up for high cost loans, compared with 10 metro
areas for low-income Hispanics.
The
report also found much smaller disparities between Asians
and whites.
The
study found the worst disparities in Charleston, S.C.;
Bridgeport, Conn.; Omaha, Neb; Milwaukee and Springfield,
Mass.
The
study comes as ratings agency Standard & Poor's
said Tuesday it is considering cutting the credit rating
of more than $12 billion in bonds backed by risky home
loans as more borrowers miss payments. These bonds _
sold by some of Wall Street's biggest banks _ represent
a principal source of financing for the housing market.
S&P
said it may slash its rating on 612 classes of mortgage-backed
bonds issued by such banks as Citigroup Inc., Bear Stearns
Cos., Lehman Brothers Holdings Inc., Morgan Stanley,
Merrill Lynch & Co., and JPMorgan Chase & Co.
Dozens
of subprime lenders have since gone bankrupt as banks
have become more reluctant to put money behind risky
mortgage loans.
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