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Why Have Banks Stopped Lending to Low-Income People In America?

By |4월 25th, 2020|

Why Have Banks Stopped Lending to Low-Income People In America?

The Federal Reserve released its annual collection of data gathered under the Home Mortgage Disclosure Act at the end of September. The report details that the country’s three largest banks—Wells Fargo, Bank of America, and JPMorgan Chase—have sharply cut back on lending to low-income people over the past few years among other findings. The three banking institutions’ mortgages to low-income borrowers declined from 32 % this season to 15 % in 2016.

The report additionally indicates that in 2016, black colored and Hispanic borrowers had more difficulty home that is acquiring than whites. Also it revealed that this past year, when it comes to time that is first the 1990s, many mortgages didn’t come from banking institutions; they originated from other institutions—often less-regulated online entitites like Loan Depot or Quicken Loans. […]