foreclosure1A study by the University of Minnesota Institute on Race and Poverty has found that the racial disparities in in mortgage lending in the Twin Cities are among the worst in the nation. And contrary to Republican talking points on the mortgage crisis, the report says that an expansion of the Community Reinvestment Act would be helpful to reducing those disparities.

The study found:

Even with a good income, people of color were substantially more likely to be denied loans, the study found, with black borrowers experiencing the greatest disparities. Black borrowers with incomes exceeding $157,000 faced a 25 percent denial rate, compared with an 11 percent denial rate among whites making $39,250. The same pattern held true for high-income Asians and Hispanics.

Similarly, subprime loans were more common for high- and very-high-income black and Hispanic borrowers than for whites in any income group. Racial segregation of neighborhoods was an added factor in the Twin Cities because they are underserved by prime lending institutions, contributing to higher subprime loan rates for people of color.

In this video, professor Myron Orfield talks about the study and its implications: