People of color disproportionately received federally insured loans -- backed by the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA) -- to finance the purchase of their homes and to refinance existing mortgages.
A new report from seven housing and policy agencies suggests evidence of a two-tiered mortgage market in which borrowers and communities of color are increasingly cut off from prime conventional financing.
It has become increasing clear that there are large numbers of qualified borrowers who can't get a loan. Disturbingly, there are signs of a racial pattern to this phenomenon.