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Redlining targets Black Minnesotans and neighborhoods

Wells Fargo leads pack according to U of M report on sub-prime lenders

By Charles Hallman
Staff Writer


A new University of Minnesota Law School study shows that Blacks and other communities of color and low-income residents in the Twin Cities still lack access to credit. It is an update of a 2009 study that found that Blacks and Latinos — even with “very high income[s] — were much more likely to get sub-prime loans than very low-income White applicants.”

“It’s hard to believe that systemically a Black family that is making $157,000 a year is less likely to qualify for a prime loan than a White family that earns 40 [thousand a year],” noted Myron Orfield, the director of the Institute on Metropolitan Opportunity, which is housed at the U of M Law School. The report also shows that Blacks and other people of color who live in two North Minneapolis neighborhoods had the highest number of sub-prime loans compared to Whites in the same neighborhoods: 59 percent for people of color compared to 42 percent Whites in Near North; and 55 percent for people of color in Camden compared to 29 percent for Whites. These two areas also “were most dramatically affected” among Twin Cities neighborhoods. “Our report [reveals] discrimination in lending against individuals on the basis of race, and also discrimination in lending against neighborhoods on the basis of race,” noted Orfield, who heads the U of M Law School’s

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