This is from JustFacts.com. Pay special attention to the last line...
* As of 1999, about 45% of blacks and 67% of whites own homes. (184)
* As of 1997, 75% of black married couples between the ages of 45 and 54 own homes. 81% of black married couples older than 54 own homes. (114)
* The ACLU and NAACP have accused mortgage companies of discrimination because they reject blacks at a greater rate than they reject whites. (86)
*
Rate of:
Blacks
Whites
Mortgage rejections (1989)
50%
26%
Poor credit histories (1999)
48%
27%
(18)(87)
* In 1996, the ACLU filed a legal complaint against the mortgage company, PHH. The complaint was based upon the fact that PHH had higher rejection rates for blacks and for people buying in predominately black neighborhoods. (86)(88)
* The ACLU analyzed PHH’s lending patterns while controlling for factors that included the applicant’s income. The unequal rejection rates between whites and blacks persisted. (88)
* The ACLU did not analyze PHH’s lending patterns while controlling for poor credit histories. (88)
* As of 1999, blacks with incomes between $65,000 and $75,000 have a higher percentage of poor credit histories than whites with incomes of $25,000 and below. Whites with incomes between $65,000 and $75,000 have a similar percentage of poor credit histories as Asian people with incomes of $25,000 and below. (The numbers cited are from a Freddie Mac study that classified an individual as having a poor credit history if they had 2 bills more than 30 days overdue, one bill more than 90 days overdue, a lien, judgment, or bankruptcy in the past two years.) (184)
* For people with incomes between $45,000 and $65,000, the rates for poor credit histories are as follows:
Asians
15.7%
Blacks
48%
Hispanics
28%
Whites
21.6%
(184)
* PHH does not have retail stores or outlets. They market their mortgages over the phone and on the Internet, and do not require anyone to submit their race with their application. (88)(89)
Inevitable.
Did the study say why the disparities existed? These incomes ($65,000 and $75,000) seem pretty good. Is this family or individual income? Did blacks have larger families, so the money didn’t stretch as far? Were they just irresponsible with their money? I know a lot of people (black and white) who don’t get the ‘pay your bills on time’ thing, even with money sitting in the bank. You could have bad credit because you are a slow pay, not just you don’t pay your bills. With that kind of income, it’s very curious to have bad credit, short of some major job or health disaster.
All that said, my whole life I’ve seen black people buy fancy cars, expensive purses, shoes, and clothing, take trips to Jamaica,etc. and not put a penny in the bank. Or they rush to buy a house before they’re financially ready and end up creating financial problems. I get so tired of being hit up for money because I’m the only one who pays bills on time, puts money aside, and tries to live w/n my income. In order to protect myself, I’ve just had to say ‘no’ a lot; doing so can cause family discord, but I refuse to be a financial mess.