Babaamaajimowinan (Telling of news in different places)

Native borrowers pay more interest on home purchases than white borrowers, federal study says

BEMIDJI, Minn. - New research released by the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis finds Native Americans pay more to finance home purchases than white borrowers. The report blames a disproportionately broad use of home-only loans on reservations.

"Those are personal property loans used to purchase manufactured homes," said CICD senior economist Matt Gregg. "So, it's the composition of the loan products that are driving the higher prices paid by on-reservation Native borrowers."

Gregg added home-only loans are not typically insured or guaranteed federally.

"When a loan is insured by the federal government, the risk to the lender is borne by the federal government," he said. "The loan becomes less risky and the benefits will flow to the consumer in the form of lower interest rates."

https://www.bemidjipioneer.com/news/national/native-borrowers-pay-more-interest-on-home-purchases-than-white-borrowers-federal-study-says

 

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