Study: Minority neighborhoods get fewer home loans in St. Louis - KMOV.com

Study: Minority neighborhoods get fewer home loans in St. Louis

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City of St. Louis (Credit: KMOV) City of St. Louis (Credit: KMOV)

ST. LOUIS, Mo. (KMOV.com) - The National Community Reinvestment Coalition released a study Tuesday morning which said race plays a major role in mortgage lending in St. Louis. 

The study says banks made fewer loans to middle and lower income borrowers in neighborhoods that are mostly minority.

“Race is more of a factor than we would normally attribute to who has access to mortgage lending,” said Elisabeth Risch from the Metropolitan St. Louis Equal Housing and Opportunity Council.

The data comes from 2012 - 2014 but Risch says this has been going on since the 1930s. 

“A lot of it has to do with discrimination,” said Risch. “There is a long history of it. It’s a pattern that we’ve seen in the last couple decades.”

So how does St. Louis compare with the rest of the country? 

“I think this report shows that St. Louis is one of the worst. It’s in line with Baltimore and Milwaukee which also had significant disparity. Among those we’re in that same category,” said Risch.

The study says other factors such as credit scores and lower incomes also played a role but race was the primary factor.

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