11/20/2009
From the report:
[C]ontrolling for other factors, minority borrowers—and especially black borrowers—were more likely to obtain high cost loans in metropolitan areas in which their racial group is more segregated.
What is to do be done?
Our research finds a strong correlation between racial segregation and the likeli- hood that minority borrowers will obtain subprime loans—nationally and in New York City. This finding is consistent with a growing number of other studies that dem- onstrate that racial residential segregation can lead to negative outcomes for minority residents. Local and federal governments accordingly must take strong measures to combat residential segregation.
A link to the full text of the report is below.