Talk Poverty - At the end of September, the Federal Reserve released its annual collection of data gathered under the Home Mortgage Disclosure Act. Among other findings, 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. The three banks’ mortgages to low-income borrowers declined from 32 percent in 2010 to 15 percent in 2016.
The report also shows that in 2016, black and Hispanic borrowers had more difficulty acquiring home loans than whites. And it revealed that last year, for the first time since the 1990s, most mortgages didn’t come from banks; they came from other institutions—often less-regulated online entitites like Loan Depot or Quicken Loans. These companies, technically known as nonbank financial institutions, can be more flexible than traditional banks, but may also charge higher rates and fees.
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