Article by Queena Sook Kim Minority-owned banks are more likely than white-owned banks to reject mortgage loan applications from African-Americans and Latinos, according to a study that is beginning to draw fire from public-policy groups. The study, to be released Thursday by the University of Southern California's Lusk Center for Real Estate, also found that minority applicants with marginal credit didn't fare better at minority-owned banks than at white-owned banks. "The study shows that either white-owned banks don't have racial biases, or that minority-owned banks share the same biases as everyone else," said the report's author, Raphael W. Bostic, a USC associate professor, who began the study while working as a senior economist at the Federal Reserve Board in Washington. For the full article, please visit the Wall Street Journal web site. (Subscription required)
June 6, 2002