HUD has released a study showing that the number of subprime home loans is skyrocketing in predominantly black neighborhoods and low-income neighborhoods. While expanded access to credit is critical, there is growing evidence that some lenders may be engaged in predatory lending that is making homeownership far more costly for blacks and poor families than for whites and middle-class families. Subprime loans are three times more likely in low income neighborhoods than in high-income neighborhoods.
Subprime loans are five times more likely in black neighborhoods than in white neighborhoods.