Top Ten Videos to watch

Spider Crash
Eric Garner Protests
Justice for Tamir sign held aloft. Stop Mass Incarcerations...
Kym Whitley
Pepsi Super Bowl 50 Halftime Show
Donald Trump's 'Crippled America' Book Press Conference
US-CRIME-RACE-SHOOTING-PROTEST
New Hampshire Primaries
TV One At The 47th NAACP Image Awards
Donald Trump Holds Rally In Biloxi, Mississippi
Behind bars
47th NAACP Image Awards Presented By TV One - Press Room
A Man Operating A Tv Camera
Maurice White
March2Justice
'News One Now' With Roland Martin Taping
Bill Cosby
Activists In Los Angeles Gather To Burn Likenesses Of The Confederate Flag
Flint Firebirds V Windsor Spitfires
CBC Message To America: Rep. Conyers Addresses The Damage Inflicted On Our Communities By Poverty, Mass Incarceration And Lack Of Economic Development
Iowa Caucus Ted Cruz
NewsOne Now NAACP Image Awards Preview
Student sitting at a desk in a classroom
Rahm Emanuel Announces Police Accountability Task Force As CPD Chief Is Fired
Slavery Stock image
The 16th Annual Wall Street Project Gala Fundraising Reception
Ava DuVernay
Roland Martin Blasts Stacey Dash For Comments About BET, Black Networks
President Obama Delivers State Of The Union Address At U.S. Capitol
Leave a comment

foreclosure mortgages

From CNN.com:

The housing collapse has made it even tougher for blacks and Hispanics to get mortgages, according to a new government report.

While credit has tightened for everyone, blacks and Hispanics are being denied loans at higher rates than whites, according to new federal data. And the gap is widening.

Lending to black and Hispanic borrowers also fell more quickly than average between 2006 and 2008, according to the 2008 Home Mortgage Disclosure Act data, released Wednesday by Federal Financial Institutions Examination Council. The council consists of the five U.S. bank regulators.

Blacks were denied mortgages 36.1% of the time in 2008, while Hispanics could not get a loan 31.1%, according to the data. Whites had denial rates of 13.6%.

Meanwhile, blacks’ share of the loan market tumbled to 6.3% in 2008, down from 8.7% two years earlier. Hispanics’ share dropped to 8.5% from 12.1%, while whites’ rate jumped to 69.1%, from 62.7%.

These trends reflect the collapse of the subprime lending market. Black and Hispanic borrowers relied more heavily on these high-priced loans for their home purchases during the boom.

Some 43.4% of blacks received high-priced loans, defined as at least 1.75 percentage points above Freddie Mac’s prevailing rate, in 2006. Two years later, that rate fell to 5.7%. Hispanics’ share of costlier loans dropped from 37.8% to 5.8%. The rate for whites fell from 13.7% to 3%.

The disappearance of subprime lending has led to an explosion in government-backed mortgages. The number of loans backed by the Federal Housing Administration tripled between 2007 and 2008, with 51.4% of black borrowers and 44.7% of Hispanic borrowers receiving FHA mortgages last year.

The trends are not surprising, experts say. The data, however, provides statistical back-up with information on 14.2 million mortgage applicants at 8,388 financial institutions. Banks also reported information on 2.9 million loans purchased from other institutions.

The housing collapse threatens the strides blacks and Hispanics have made in increasing their homeownership rates and building wealth, said Lot Diaz, vice president for housing and community development for the National Council of La Raza, a Hispanic advocacy group. While many people received unsustainable mortgages during the boom, many others were able to secure loans they could afford, he said.

“We fought very hard to open up access to credit to low- and moderate-income families and we’re in danger of losing that,” said Diaz, who is particularly concerned about jump starting lending.

The collapse of the subprime market isn’t necessarily a bad thing, some experts say.

To read more, click here.

Also On News One: