With new information in HMDA data concerning high-cost loans, NCRC has created a series of studies documenting that minorities, women and the elderly receive a disproportionate amount of high-cost or subprime loans. When a group of borrowers receives a disproportionate amount of such loans, excessive fees, interest rates and other unfair practices become more likely, as this group of borrowers faces few product choices and does not benefit from robust competition among lenders.  NCRC’s studies have shown that, after controlling for creditworthiness, minorities and other protected classes are still more likely to receive subprime loans. These studies motivate stakeholders to address stubborn and persistent lending disparities and to increase product choice in all communities.
