Deregulation, subprime loans killed Black ownership

(Special to the quick long term loans today NNPA from the Florida Courier) — A new study from sociologists at Rice University and Cornell University found that African Americans are 45 percent more likely than whites to switch, due to foreclosure, from owning their homes to renting them.

The study, “Emerging Forms of Racial Inequality in Homeownership Exit, 1968-2009,” examines racial inequality in transitions out of homeownership over can i get more than one cash advance at a time the last four decades.

“The 1968 passage of the Fair Housing Act outlawed housing market discrimination based on race,” said Gregory Sharp, a postdoctoral fellow in Rice’s Department of Sociology and the study’s lead author.

“African-American homeowners who purchased their homes in the late 1960s or 1970s were no more or less likely to become renters than were white owners.

“However, big short term loans emerging racial disparities over the next three decades resulted in Black owners who bought their homes in the 2000s being 50 percent more likely to lose their homeowner status than similar white owners.”

Deregulation, exotic loans — Sharp said the deregulation of the mortgage markets in the 1980s — when Congress removed interest rate caps on first-lien home mortgages and installment loans for pa permitted banks to offer loans with variable interest rate schedules — and subsequent emergence of the subprime market are likely reasons Blacks were at an elevated risk of losing their homeowner status.

In 2000, African Americans were more than twice as likely as whites with similar incomes to sign subprime loans; among lower-income Blacks, more than half of home refinance loans cash advance kearney ne were subprime.

“African-American homeowners’ heightened subprime rates were not only due to their relatively weaker socioeconomic position, but also because lenders specifically targeted minority neighborhoods,” Sharp said.

Other factors irrelevant — Sharp noted that these inequalities in homeownership exit held even after adjusting for an extensive set of life-cycle traits, socioeconomic characteristics, characteristics of housing units and instant loans now sa debt loads, as well as events that prompt giving up homeownership, such as going through a divorce or losing a job.

The authors used longitudinal household data from the Panel Study of Income Dynamics for the period 1968 to 2009, with a study sample of 6,994 non-Hispanic whites and 3,158 Black homeowners.

Sharp and his coauthor hope the research will prompt legit direct payday loans further analysis of additional factors that potentially contribute to racial disparities in homeownership exit, such as household wealth and residential location.

The study will appear in the August edition of Social Problems and was coauthored by Matthew Hall, a demographer and assistant professor of public policy at Cornell University.

This article originally published in the August 4, 2014 print edition of The Louisiana Weekly newspaper.