Lenders Slighting Minority Neighborhoods

By Patrick Hosken

Rochester, NY – A new report finds low-income communities and neighborhoods of color are having a hard time getting mortgages.

The report shows that areas with high numbers of minorities experienced a two-thirds drop in conventional lending between 2006 to 2008. Predominately white communities saw a decrease of just 30 percent.

Ruhi Maker is a senior attorney at Empire Justice Center, which conducted the report. The center is a nonprofit organization that conducts public policy research about issues like housing. She says minority areas experienced a steeper decrease in lending than other neighborhoods.

That's a problem because it prevents people from owning their own homes, which lead to more stable neighborhoods. But it also affects employment. Maker says if residents can't get access to credit, they might not be able to send their children to college, or open a small business.

You can read the report at the Empire Justice Center's website.