|
Fair Finance Watch -- Detroit
February 5, 2006
Fair Finance Watch has analyzed mortgage lending patterns in the Detroit
Metropolitan Statistical Area in the most recent year for which data is
available, 2004. Comparing the rate at which African Americans and
whites were confined to higher cost mortgages over the federally-defined
rate spread (of 3% over comparable Treasury securities on first lien
loans, 5% on subordinate liens) are among the most disparate.
At
Bank of America,
N.A., American Americans were over 26 times more likely to be confined
to higher cost loans than whites;
At
Citigroup's
mortgage company, CitiMortgage Inc., American Americans were over 8.6
times more likely to be confined to higher cost loans than whites;
At
Wells Fargo Bank,
N.A., American Americans were over 7.2 times more likely to be confined
to higher cost loans than whites, and Hispanics were over 2.8 times more
likely to be confined to higher cost loans than non-Hispanic whites;
At
Chase Manhattan
Mortgage Corp., American Americans were over 6.7 times more likely to be
confined to higher cost loans than whites, and Hispanics were over 2.9
times more likely to be confined to higher cost loans than non-Hispanic
whites;
At
Wachovia Mortgage,
American Americans were over 3.1 times more likely to be confined to
higher cost loans than whites.
Several major regional banks were also
among the most disparate:
At ABN Amro Mortgage Group, American Americans were over 13.2 times more
likely to be confined to higher cost loans than whites, and Hispanics
were over 7.8 times more likely to be confined to higher cost loans than
non-Hispanic whites;
At Fifth Third Mortgage, American Americans
were over 10.3 times more likely to be confined to higher cost loans
than whites, and Hispanics were over 6.3 times more likely to be
confined to higher cost loans than non-Hispanic whites;
At National City Mortgage, American Americans
were over 7.9 times more likely to be confined to higher cost loans than
whites, and Hispanics were over 4.2 times more likely to be confined to
higher cost loans than non-Hispanic whites; and
At The Huntington National Bank, American
Americans were over 4.1 times more likely to be confined to higher cost
loans than whites, and Hispanics were a whopping 29 times more likely to
be confined to higher cost loans than non-Hispanic whites.
Significantly, in light of the $325 million predatory lending
settlement announced Jan. 23, major Super Bowl advertiser Ameriquest
Mortgage in 2004 made 381 loans to African Americans in the Detroit MSA,
315 of them over the rate spread. Meanwhile, Ameriquest’s affiliate
Argent Mortgage, which the state attorneys general left out of the
settlement and reforms, made 2673 loans to African Americans in the
Detroit MSA in 2004, 2142 of them over the rate spread. So the
settlement covers less than 12.5% of ACC Capital Holdings’ loans to
African Americans, and an even smaller percentage of ACC’s higher cost
loans over the rate spread.
Click
here for FFW’s
Ameriquest
Watch.
A book on these topics, "Predatory Bender"
CL
Review order / Amazon
For further information, click here to contact us
|
