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A new study released by the National Community Reinvestment Coalition (NCRC) highlights racial and income disparities in mortgage lending within the St. Louis, Milwaukee and Minneapolis metro areas.
According to the NCRC, whites made up 75 percent of the St. Louis metro area and received 83 percent of the mortgages, while blacks made up 18 percent of the population but received only four percent of the loans. In the Milwaukee market, whites represent 70 percent of the population and received 81 percent of the mortgages, while blacks are 16 percent of the population but only received four percent of the loans. In Minneapolis, the median family income of the neighborhood was the reigning variable for home loan activity, with white applicants edging out black residents.
“This report clearly shows the lack of mortgage lending in low- and moderate-income neighborhoods and predominantly minority neighborhoods,” said NCRC’s President and CEO John Taylor. “Without access to responsible mortgage credit and the opportunity to become a homeowner, the ability for working people to build wealth is severely curtailed. Until our financial institutions make a full and genuine commitment that creditworthy borrowers, regardless of their skin color, will be able to access responsible credit, the economies in these neighborhoods will continue to deteriorate.”