Report: Minorities pay more for loans in 6 cities (McClatchy News Service)

WASHINGTON African-American and Latino borrowers are paying more than whites for home loans in six areas around the country, a study released Thursday showed.

The report by the California Reinvestment Coalition, Community Reinvestment Association of North Carolina and four other groups said that home loans are more expensive for minorities in Boston, Charlotte, Chicago, Los Angeles, New York City and Rochester, N.Y.

In all six areas, the report found, African-American borrowers were almost four times more likely to get a higher-cost home loan than white borrowers. In those same six areas, Latino borrowers were also almost four times as likely to get a more expensive loan, the report said.

The report focuses on both prime and subprime lending by Citigroup, Countrywide, General Motors Corp. unit GMAC, HSBC, JPMorgan Chase, Washington Mutual and Wells Fargo. All those banks originated “a substantial volume” of prime and subprime loans, the report said.

Banks should combat discriminatory lending by making all products available to all borrowers, while regulators should examine big banks for fair lending violations, the report said.

Subprime loans have drawn heightened attention from regulators and markets in recent weeks as banks specializing in those products have suffered from the leveling off of housing prices.

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