People of Color Denied Refinancing At Higher Rates

New federal data shows that last year blacks were nearly twice as likely to be denied when applying to refinance a home mortgage as whites. About 61 percent of refinance applications from black borrowers were denied, an eight percent increase from 2007. Less than a third of whites were denied.

About half of all refinance applications from Hispanic borrowers were denied, a slight increase from last year. Whites, on the other hand, saw their denial rates drop two percent, federal data gleaned from lenders under the Home Mortgage Disclosure Act shows.

Credit scores are being targeted as the main culprit as well as other factors. Everyone should keep in mind that many minorities were also given subprime mortgage loans which are typically for people with below average credit histories even when they had pretty good credit histories and could have qualified for prime mortgages.

The goal is to determine how minorities can live from year to year in a way that allows them to have credit scores and credit histories that qualifies them for mortgages, credit cards, auto loans, and other loans without having to pay more than other Americans.