Skip to main content

Study: Reservation Indians Pay Higher Mortgage Rates

Phil Hall
Oct 07, 2019
Photo credit: Getty Images/Rixipix

American Indians who live on tribal reservations pay nearly two percentage points more on mortgage rates than the general population, according to a study from the Federal Reserve Bank of Minneapolis’ Center for Indian Country Development (CICD).
 
The study, titled “The Higher Price of Mortgage Financing for Native Americans,” noted that an Indian family that buys a residential property on a reservation for $140,000 home could pay $107,000 more during the span of a 30-year fixed-rate mortgage compared to homeowners living outside of the tribal lands. The study concluded that roughly 30 percent of home loans made to American Indian and Alaska Natives for reservation properties came with higher interest rates, and manufactured homes accounted for 25 percent to 35 percent of the difference in the cost of financing.
 
The report concluded that “without other institutional market reforms, promoting homeownership as a method of increasing Native American equity and assets may be less effective than for other populations.”
 
“This report should serve as notice to policymakers, lenders, and housing advocates that there is an urgent and deeply troubling issue around housing and mortgage costs across Indian Country,” said Minneapolis Fed Assistant Vice President and CICD Director Patrice Kunesh.

 
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021