Federal Reserve Chair: Discriminatory Lending Made Housing Crisis Worse For MinoritiesQuicklink submitted by Amanda Lang Permalink
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|Discriminatory lending policies made the housing crisis worse for African-American and Latino borrowers, Federal Reserve Chairman Ben Bernanke told a financial summit held Thursday in Atlanta. The housing crisis and economic slump followed the "unfortunate pattern" of "disproportionately affecting" minorities, Bernanke said, pointing to the fact that black home ownership rates have fallen five percentage points in the last eight years, compared to just a two percent drop for the general population.
Two major discriminatory actions made the crisis worse for minorities, Bernanke said:
"One is redlining, in which mortgage lenders discriminate against minority neighborhoods, and the other is pricing discrimination, in which lenders charge minorities higher loan prices than they would to comparable nonminority borrowers," Bernanke said.
"We remain committed to vigorous enforcement..."
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