A recent academic study of a big panel of households found that mortgage delinquency rates among Hispanics were 4.7 times the rate among whites by 2009.
As for blacks and the Housing Bubble, well, we hear a lot about "lenders of last resort." But, judging by this graph, black communities apparently served as borrowers of last resort.
A House Divided:
How Race Colors the Path to Homeownership
Fewer minorities apply for conventional mortgages. Although Hispanics and blacks make up 17 percent and 12 percent the U.S. population, respectively, they represented only 5 percent and 3 percent of the conventional mortgage application pool.
Blacks experience the highest loan application denial rates. 1 in 4 blacks will be denied their conventional loan application, as opposed to 1 in 10 whites.
Wide disparities in homeownership rates among ethnic groups persist. 73.9 percent of whites own a home, whereas 60.9 percent of Asians, 50.9 percent of Hispanics, and 46.5 percent of blacks own.
The rise and subsequent fall of home values in the U.S. housing bubble disproportionately affected black and Hispanic homeowners, measured by indexed home values between the peak of the market and the bottom, or “trough.”
“It’s been more than 50 years since Dr. King fought for equality, yet it is apparent that the American dream of homeownership is not equally shared by all, even today. Our research shows that minority home buyers are encountering difficulties that often aren’t shared by white home buyers, and that even after they achieve the dream, they have been less likely to see a similar return on their investment."
Dr. Stan Humphries, Zillow Chief Economist
So, buckle up because influential people are starting to want to go for another ride on the Diversity Lending Rollercoaster.