- Aug 28, 2015
J.P. Morgan Chase recently agreed to settle a federal lawsuit that accuses the bank of discriminating against minority borrowers by charging them $1,000 more than equally qualified white customers. Pew research finds that black and Hispanic home buyers have a harder time qualifying for conventional mortgages than white and Asian applicants — and when approved, are typically charged higher interest rates.
Imagine mortgage credit standards as a roadway, connecting lenders with potential borrowers who dream of owning a home. What in the mid-2000s was a wide-open superhighway with few barriers became, after the 2008 housing crash, a one-lane path open only to the most credit-qualified.