Blacks and Hispanics pay more for homeownership

[Houston1stWordOnTheMoon]

WASHINGTON - Black and Hispanic home buyers pay more for their mortgages than do whites, according to a Federal Reserve report released Friday.

The Fed's analysis of 2005 home lending data found that 54.7 percent of black borrowers paid a higher-than-typical interest rate on home mortgages. That was up sharply from 32.4 percent in 2004.

For Hispanics, 46.1 percent paid more than typical for their mortgages last year

[MidtownCoog]

And white people with bad credit pay more than white people with good credit.

As always, only 1/2 the story?

How do white credit ratings compare to other races?

[sevfiv]

^that and the types of loans secured need to be analyzed further

Edited September 8, 2006 by sevfiv

[Gary]

And white people with bad credit pay more than white people with good credit.

As always, only 1/2 the story?

How do white credit ratings compare to other races?

Those were my thoughts exactly.

[Pumapayam]

How do white credit ratings compare to other races?

I think the whole point of it is to justify that blacks and hispanics make less money in "general" than white and they they have poor spending/saving habits, i.e. bad credit.

It is just another way have sending out a message that blacks and hispanics need to have better education, jobs, and values.

[TJones]

I ain't touchin this one with a 100ft. pole !

[Pumapayam]

I ain't touchin this one with a 100ft. pole !

That is not my opinion if that is what you are infering. That fact that people would even think to compare credit history to race is silly.

But they are using this piece of news material to tell everyone that "whites" have it easier than "blacks and hispanics"

[RedScare]

As always, only 1/2 the story?

Actually, the article listed many of the reasons for the differences in interest rates. None of them referred to race. Additionally, the article stated that the data quoted came from a Federal Reserve report that is required to be compiled annually on lending activity. There was nothing nefarious about it. The article merely states what the report showed, as well as some of the reasons for it.

How the reader takes the story cannot be controlled by the author, especially if the reader does not read the entire story.

[Montrose1100]

"Let laying dogs sleep" or "sleeping dog lay" (something that).

What does it matter? What is the point of this article? (rhetorical).

This type of information doesn't help anyone. It makes it 'seem' like Whites are being treated better, and therefore minorites are not equal. I know its just numbers and information, but it could easily be used as a reference in a poor opinion statement, such as the article "seems".

[TheNiche]

Actually, the article listed many of the reasons for the differences in interest rates. None of them referred to race. Additionally, the article stated that the data quoted came from a Federal Reserve report that is required to be compiled annually on lending activity. There was nothing nefarious about it. The article merely states what the report showed, as well as some of the reasons for it.

How the reader takes the story cannot be controlled by the author, especially if the reader does not read the entire story.

We all know that the Chronicle spins its stories in such a way as to cater to the lowest common denominator of prospective readers. You are correct that there is no apparent factual misinformation being put out there, but then we are well-educated and bright enough to be able to read the article and see right through it. Many people will take it the wrong way, and the Chronicle knows and exploits this.

[RedScare]

We all know that the Chronicle spins its stories in such a way as to cater to the lowest common denominator of prospective readers. You are correct that there is no apparent factual misinformation being put out there, but then we are well-educated and bright enough to be able to read the article and see right through it. Many people will take it the wrong way, and the Chronicle knows and exploits this.

That may be a valid point if the article was from the Chronicle. As it happens, the article was found on yahoo, written by an AP Economics Writer, thereby inadvertantly proving my point.

Thanks, Niche. With that, I'm going to go have a drink and chuckle over this.

[TheNiche]

That may be a valid point if the article was from the Chronicle. As it happens, the article was found on yahoo, written by an AP Economics Writer, thereby inadvertantly proving my point.

Thanks, Niche. With that, I'm going to go have a drink and chuckle over this.

That proves nothing. The AP puts out an enormous variety of stories all day. Some are worthwhile, and others aren't. They know there's a market for the underhanded ones, like these, and they'll exploit it. That's how they make money.

The Chronicle isn't the only culprit in providing a market for these kinds of stories, either.

Edited September 8, 2006 by TheNiche

[MidtownCoog]

Red, I think you need to read it again.

Lies, damn lies, and statistics.

It's still 1/2 a story.

[TJones]

That is not my opinion if that is what you are infering. That fact that people would even think to compare credit history to race is silly.

But they are using this piece of news material to tell everyone that "whites" have it easier than "blacks and hispanics"

I wasn't referring to YOUR post. I am not going to keep reminding you that the world does NOT revolve around you !

I was saying just in general, that this whole subject is something I will not get into.

.....and don't kid yourself Puma, they ARE comparing "FICO scores" to race, the law now requires that certain businesses run an OFAC report to see if someone is a terrorist as part of the "Patriot Act". But I digress, I am NOT getting into this one.

Edited September 8, 2006 by TJones

[Guest danax]

The title,"Blacks and Hispanics pay more for Mortgages" is a not-so-subtle slam to whites and seems designed to suck the reader in, almost like a National Enquirer cover.

I've seen a lot of credit reports and bad credit follows the lower classes in general, of which minorities tend to predominate in Houston. Living close to the economic edge makes missing a payment or not being able to pay a bill period more of a likelihood. The other factor is an attitude of not caring about paying even if the ability is there, which I will go out on a limb and say is more predominant in poorer classes. Another sociological trait I've observed is when someone with meager earnings takes on too much debt, usually in the form of credit cards or $35K cars or trucks, along with sometimes co-signing for a family member wanting to help them out and getting burned.

Another tendency of lower income borrowers is to go "stated" (lying about their income), a perfectly legal loan program type, when they don't make enough to qualify. Rates are of course higher because the risks are.

Another factor would be a loan officer's ability to jack a rate up because they feel that the borrowers are too ignorant of the procedures or are so eager to get a home that they'll not care or notice. But consider that most borrower's that I've seen tend to use loan officers who are of their "own race".

The borrowers with the most money are often the toughest customers to please, and therefore are able to negotiate the best deal. I've seen two examples lately where "minorities" got great deals because they fought for them; one Hispanic man (not an immigrant) closed with the loan officer losing money on the rate. The other was a middle-easterner who threatened to cancel enough times and got his rate as low as possible. Middle easterners, Pakistanis and Indians are famous for being very difficult to deal with due to their tendencies to fight hard for a deal. They seem to not want anyone to make any money.

There are plenty of prosperous minorities who have excellent credit and get excellent loans, but writers desperate for topics don't write about them. I'd say based on the hundreds of credit reports and loans I've seen, if you take class out of the equation, the races are given equal treatment.