According to a Consumer Federation of America paper at AmericaSaves.org, women and people of color with the same income and credit scores as white men were more likely to receive subprime loans that made it more difficult to build equity and wealth.
- Women are more likely to receive subprime and high-cost subprime mortgages.
- Women are significantly over-represented in the pool of subprime mortgages.
- Women are more likely to receive subprime mortgages of all types regardless of income, and
disparity between men and women increases as incomes rise.
- Women of color are the most likely to receive subprime loans and white men are the least likely
to receive subprime loans at every income level and the gap grows with income.
CFA examined borrower incomes based on the Area Median Income where they lived to analyze comparable borrowers across the country. The CFA analysis found that the subprime disparity between women and men increased for women with higher incomes relative to men with similar earnings. Although women earning below the area median income were 8 percent more likely to receive subprime loans than similarly earning men, women earning more than double the area median income were 50 more likely to receive subprime loans than men with similar earnings.The Center for Responsible Lending found a similar effect.
When we compare the borrowers with the same risk characteristics, African Americans and Latinos were still more likely to get higher-rate loans.