Study: C’ville Has #1 Race-Based Mortgage Gap

A study of mortgage rates throughout the country has revealed that Charlottesville has the nation’s biggest disparity between rates for blacks and whites, North Carolina’s News & Observer reports. The study (250k PDF) uses 2005 data available under the Home Mortgage Disclosure Act for metropolitan areas to compare mortgage rates for African American homeowners to those for white homeowners and found that 43% of all loans to blacks in the area were high cost, while only 11% of those to whites were. That makes blacks 388% more likely to have high cost loans than whites, and that’s using data across all income levels. We’re tied with Durham, N.C. The National Community Reinvestment Coalition writes in the study:

The Charlottesville, VA MSA also ranked the worst in home lending to low- to moderate-income (LMI) African-American borrowers. Of all loans to LMI African-American borrowers, 48.0% were high-cost, while only 15.2% of the loans received by LMI whites were high-cost. This means that LMI African-American borrowers were 3.16 times more likely to receive a high-cost loan than LMI white borrowers.

The report was presented today at the NAACP conference in Detroit.

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