In his annual home-loan trend study, Jim Campen, economics professor emeritus at University of Massachusetts Boston, confirmed the continuation of a trend that was first identified more than 20 years ago.
The Boston Globe reports that Campen found aspiring minority homebuyers still have a much harder time getting mortgages than white buyers, even when their salaries are similar. Twenty-one percent of black Boston mortgage applicants in 2014 were rejected, while only 6 percent of white loan applicants were rejected.
The Globe writes:
“Even when minorities make as much money as whites, the disparities remain. Among applicants with incomes between $71,000 and $90,000, blacks and Latinos were rejected at significantly higher rates than whites, according to Campen’s analysis.’’
The Federal Reserve Bank of Boston identified this as a problem as early as 1992, when lenders pledged they were going to do something about it, the Globe noted, but Campen has confirmed not much as changed since then.
“It’s a combination of a lot of things,’’ Campen said. “It’s very discouraging. It’s all about the long legacy of historical discrimination.’’
Read the full Boston Globe story here.
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