LOS ANGELES (Reuters) - Gaps in home ownership rates between minorities and whites will increase because of a change in the U.S. mortgage industry, caused by a credit panic, the chief executive of Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the largest U.S. mortgage lender, said on Thursday.

“The structure of the business is permanently changed … The industry will never be the same,” said Angelo Mozilo, speaking at a real estate conference in downtown Los Angeles.

He said the credit crisis inspired fear among lenders, who are increasingly less likely to lend to risky borrowers.

“As a result, I believe that five years from now, or sooner, there will be substantial disparities between home ownership between whites and minorities,” said Mozilo, whose company is the largest U.S. lender to African-Americans, Hispanics and Asians.

Full story…