Sub-Prime Redlining?

African-Americans and Latinos have been particularly hard-hit by the predatory lending practices of sub-prime lenders, writes Mark Winston Griffith, Co-Director of the Neighborhood Economic Development and Advocacy Project.

2 minute read

April 12, 2007, 6:00 AM PDT

By Michael Dudley


"Some analysts suggest that sub-prime lenders are being punished for giving high-risk loans to borrowers in low- and moderate-income neighborhoods and communities of color, people, they say, who perhaps never should have received a loan in the first place. After all, their logic follows, not every American can handle the responsibility of credit and owning a home.

This is a convenient, yet misguided, conclusion to draw from the sub-prime mortgage debacle. In truth, sub-prime lending is just the latest example of how lenders have tarred entire segments of the population as credit unworthy through the mortgage industry's own discriminatory, irresponsible -- and now reckless -- behavior.

[M]ore than 50% of African-American and 40% of Latino mortgage borrowers have sub-prime loans. While of course many of these folks do in fact have poor credit histories, many of them, often targeted by hyper-aggressive marketing campaigns, would otherwise be eligible for low-cost, "prime" loans. A study by the Center for Responsible Lending documented that African Americans and Latinos get high-priced mortgages far more frequently than whites -- even when they are equally qualified for prime loans.

The term sub-prime is engendered with the belief that certain communities represent a lower order of customer species. As a result, sub-prime lenders justify their predatory pricing by claiming that African Americans and Latinos are higher credit risks. In other words, they deserve whatever horrific loans they get."

Monday, April 9, 2007 in AlterNet

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9, 2025 - Axios

Canadian flag in foreground with blurred Canadian Parliament building in background in Ottawa, Ontario, Canada.

Has President Trump Met His Match?

Doug Ford, the no-nonsense premier of Canada's most populous province, Ontario, is taking on Trump where it hurts — making American energy more expensive.

March 11, 2025 - Toronto Star

Close-up of green ULEZ sign in London, UK.

Study: London ULEZ Rapidly Cleaning up Air Pollution

Expanding the city’s ultra low-emission zone has resulted in dramatic drops in particle emissions in inner and outer London.

March 10, 2025 - Smart Cities World

Tents set up by unhoused people under freeway overpass in San Jose, California with American flag above them.

San Jose Mayor Takes Dual Approach to Unsheltered Homeless Population

In a commentary published in The Mercury News, Mayor Matt Mahan describes a shelter and law enforcement approach to ending targeted homeless encampments within Northern California's largest city.

March 14 - The Mercury News

Blue Atlanta streetcar on street in downtown Atlanta, Georgia.

Atlanta Changes Beltline Rail Plan

City officials say they are committed to building rail connections, but are nixing a prior plan to extend the streetcar network.

March 14 - Saporta Report

New York City city hall building.

Are Black Mayors Being Pushed Out of Office?

The mayors of New York, St. Louis, and Pittsburgh all stand to lose their seats in the coming weeks. They also all happen to be Black.

March 14 - Governing

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.