Blacks, Latinos Hurt Most By Foreclosures
Very little surprises me anymore when it comes to seeing that minorities suffer the most on many financial levels. First it was hearing that blacks and Latinos are taking the worst hit on unemployment than anybody else. Then it was hearing that black farmers still haven’t gotten money from the government that the Justice Department says they deserve. Next on the list was hearing that Wells Fargo, along with many other banks, we’re giving minorities higher mortgage rates to purchase homes than anybody else.
So it comes as no surprise hearing that black and Latino homeowners have suffered more than non-minorities as it pertains to foreclosures. At least as its related to home loans between 2005 and 2008. For that group, it seems that 8% of the foreclosures were from minority homeowners, whereas none minority homeowners had their homes foreclosed upon at 4.5%. The reason this is an important figure is because it shows that even now, lenders are treating minority home owners differently than anybody else, hitting them with interest rates so much more above the norm that they are at the greatest risk of having their homes foreclosed upon. The study by the Center for Responsible Lending also stated that black and Latino communities will suffer the most in declining property values between 2009 and 2012, to the estimated tune of $373 billion.
Of course foreclosures hit everybody across the board, and the overwhelming number of foreclosures came from bad deals that occurred back in the 90s. However, knowing that this is still a common problem, and in listening to some pundits say that they believe all of this is the fault of Rep. Barney Frank of Massachusetts, who helped pass a law to equalize lending for minority applicants, it seems to indicate that lenders pretty much ignored the law in the first place, thus abdicating Rep. Frank of any responsibility for the present crisis.
What happens now? Who knows, since it seems foreclosures are still occurring, even at a lesser rate since so many homes have already been foreclosed upon, and there doesn’t seem to be an end in sight.