Blacks who qualified for prime mortgages were being disproportionately sold subprime loans. A HUD study found that subprime loans were five times more likely in black neighborhoods than in white ones between 1993 and 1998. In other words, “high-cost subprime lending accounted for 51% of home loans” in black neighborhoods, versus only 9 percent in white ones. Moreover, “homeowners in high income black neighborhoods [were] twice as likely as homeowners in low income white neighborhoods to have subprime loans.”111 Several of these studies identified race of the borrower as the key predictor
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