Study: Subprime Loans Went to Minority-Heavy Neighborhoods
November 19, 2009
Residents of largely non-white neighborhoods in New York City were far more likely to receive a subprime loan than those in largely white neighborhoods, regardless of the borrower’s race, according to a new study from NYU’s Furman Center.
The study, which controlled for differences in income and loan amounts, found that African-American borrowers living in neighborhoods with the lowest share of non-white residents had a 24 percent chance of receiving a subprime loan. That number increased to 38 percent if the borrower lived in a neighborhood with the highest share of non-white residents. More>
