Report ranks St. Louis low for loan disparity
By Maria Hickey, KWMU
St. Louis, MO – Minorities in the St. Louis area are more likely to receive high-cost loans than whites, according to a national report released Wednesday.
The Association of Community Organizers for Reform Now---or ACORN---looked at data available through the Home Mortgage Disclosure Act for 2006.
ACORN's Missouri state director Jeff Ordower says in St. Louis minorities received higher-cost loans more often than whites, regardless of income level.
"Upper income African-American home buyers were three times more likely to receive a high cost loan than low-income whites," Ordower said, in an interview. "And upper and middle income African-Americans were much more likely to receive a high cost loan, so it doesn't break down by income.
"It really is racial targeting."
The report defines 'high-cost loans' as those with an APR at least three points above the comparable rate on U.S. Treasury Securities.
ACORN looked at more than 170 U.S. cities; St. Louis was in the bottom third for racial disparity in loans.