Minority Americans were the biggest losers in the subprime mortgage crisis, according to a study by an advocacy organization United for a Fair Economy.
The study concludes that African-Americans and Hispanics lost as much as $213 billion in wealth over the last eight years because of predatory lending. “This was “the most massive loss of wealth for African Americans in U.S. history,” the study said.
The study also pointed to data from the Home Mortgage Disclosure Act, which suggests that 40 percent of African-Americans given subprime housing loans could have qualified for cheaper mainstream mortgages.
Source: Electronic Urban Report 02/09/2009