The New York Times suggests that the problem is the mortgage brokers; immigrants and African Americans don't trust banks for a variety of reasons. And they did trust mortgage brokers who were members of their communities, and steered them to expensive loans that earned fat commissions.
I don't say that this isn't the problem--I'm sure it's a least some part of it. But there's a problem with this sort of analysis. There are a number of different metrics that go into loan quality, and therefore what a buyer should pay for their loan:
- Expenses, especially outstanding debt
- Credit score
- Loan-to-value ratio
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