The percentage of unemployment among black workers is 16.5%. Among Hispanics it is 12.4%, according to the Bureau of Labor Statistics. So, it is not terribly surprising that mortgage defaults among the two groups are also higher than the national average. The problem, however, may go beyond employment.
According to the Center for Responsible Lending, 8% of Latinos and Blacks had homes foreclosed up compared to 4.8% among white homeowners. Two things stand out in the study beyond the figures about race disparities among foreclosure rates. The first is that well-to-do blacks had higher rates than well-to-do whites. The second is that providers of subprime mortgages may have targeted minorities as part of the lending practices.
The disadvantage that minority homeowners have shows that foreclosures and home loans have not been a level playing field. It is impossible to tell whether discrimination accounts for the disparity.
The next issue is whether the government should try to offset this disparity with the way it handles mortgage modifications to keep people in their homes. That would not be politically correct and its appears that based on the disarray of the federal government’s attempt to cut the monthly payments of needy homeowners, it could not be accomplished practically anyway.
Douglas A. McIntyre
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