The nonprofit group analyzed more than 600,000 foreclosures in the state and found that black and Hispanic borrowers were more likely to receive higher-cost subprime mortgages with loan terms that typically increased the risk of default, compared with safer loans made to Caucasians.
"Dishonest brokers peddled their high-cost loans, steered our families into risky products designed to fail, and now Latinos and all of California are paying the price," said Janet Murguía, President and CEO of the National Council of La Raza in a news release.
While white borrowers made up half of all home loans granted during the period studied, they accounted for only a third of home foreclosures. The findings also suggested that more than three-quarters of all California foreclosures were on relatively modest properties, not oversized luxury homes.
