OCPP Finds Racial Pattern in Oregon’s Subprime Lending

From the Oregon Center for Public Policy:At all income levels, Oregon’s African American and Hispanic borrowers are more likely than whites to have received subprime loans, said OCPP. It found, for example, that about half of African American and Hispanic middle-income borrowers received subprime loans in 2006, compared to just 25 percent of their white counterparts.OCPP cautioned that by itself the analysis does not prove racial discrimination, because it does not control for factors such as borrower credit scores and other measures of risk. Still, the Silverton-based think tank noted that respected national studies that have attempted to control for these sorts of factors have still found unexplained racial disparities in the cost of home loans.Besides examining racial disparities in Oregon’s overall mortgage market, OCPP also analyzed the lending of Washington Mutual, one of the country’s largest lenders, to understand more clearly how racial disparities may arise. OCPP found that […]

Original post by Clint8200

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