Communities of color have always lagged far behind in homeownership, and foreclosures are making the situation worse. During the heyday of the subprime lending boom, borrowers of color were three to five times more likely to be given risky loans than comparable white borrowers. Now about 8 percent of both African-American and Latino homeowners have experienced foreclosure, compared to 4.5 percent of white homeowners. The end result: a wealth drain of more than $350 billion from African-American and Latino communities, entrenching and exacerbating the 10-to-1 wealth disparity between white and non-white households.
Source: Center for Responsible Lending, Foreclosures by Race and Ethnicity: Demographics of a Crisis, June 18, 2010.
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