Comments on: Upper Income African-Americans Moving into FHA Loans http://banktalk.org/2010/12/17/african-americans-moving-into-fha-loans/ Exploring the Finances of the Unbanked Tue, 22 May 2012 19:08:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Adam Rust http://banktalk.org/2010/12/17/african-americans-moving-into-fha-loans/comment-page-1/#comment-4610 Adam Rust Fri, 17 Dec 2010 22:17:56 +0000 http://banktalk.org/?p=3021#comment-4610 Dory -- Yes, assets and credit scores are two factors. I wish that they were a part of HMDA. I've read the work out of Brandeis, Wash U., Pew, and the Fed about asset inequality. The Fed's 2007 SCF said that median A-A incomes were about $10,000. Another interesting factor is the difference in family makeup. A greater share of A-A applicants are female head of households. SCF has data that shows that assets are very low in that group - almost half have a negative net worth. Dory –

Yes, assets and credit scores are two factors. I wish that they were a part of HMDA. I’ve read the work out of Brandeis, Wash U., Pew, and the Fed about asset inequality. The Fed’s 2007 SCF said that median A-A incomes were about $10,000.
Another interesting factor is the difference in family makeup. A greater share of A-A applicants are female head of households. SCF has data that shows that assets are very low in that group – almost half have a negative net worth.

]]> By: Tweets that mention African-Americans Moving into FHA Loans | Bank Talk -- Topsy.com http://banktalk.org/2010/12/17/african-americans-moving-into-fha-loans/comment-page-1/#comment-4596 Tweets that mention African-Americans Moving into FHA Loans | Bank Talk -- Topsy.com Fri, 17 Dec 2010 21:04:42 +0000 http://banktalk.org/?p=3021#comment-4596 [...] This post was mentioned on Twitter by Justin Hosie, CRA-NC. CRA-NC said: Upper Income African-Americans Moving into FHA Loans http://j.mp/g7zxz4 [...] [...] This post was mentioned on Twitter by Justin Hosie, CRA-NC. CRA-NC said: Upper Income African-Americans Moving into FHA Loans http://j.mp/g7zxz4 [...]

]]> By: Dory Rand http://banktalk.org/2010/12/17/african-americans-moving-into-fha-loans/comment-page-1/#comment-4595 Dory Rand Fri, 17 Dec 2010 21:01:35 +0000 http://banktalk.org/?p=3021#comment-4595 Adam, it would be interesting to know whether lack of assets for a bigger down payment is the primary reason that African Americans are disproportionately taking FHA loans. The racial wealth gap has been well documented by folks like Tom Shapiro at IASP/Brandeis. It would also be interesting to see what effect credit scores have on where they get their loans. Woodstock Institute's recent Bridging the Gap report documents how African American communities have much higher concentrations of persons with low credit scores than predominantly white communities. Adam, it would be interesting to know whether lack of assets for a bigger down payment is the primary reason that African Americans are disproportionately taking FHA loans. The racial wealth gap has been well documented by folks like Tom Shapiro at IASP/Brandeis. It would also be interesting to see what effect credit scores have on where they get their loans. Woodstock Institute's recent Bridging the Gap report documents how African American communities have much higher concentrations of persons with low credit scores than predominantly white communities.

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