Banks are Walking Away from Low-Income Homebuyers
CNN Monty, May 11, 2018–Lydia DePillis
Newly released federal data on mortgage lending from the Consumer Financial Protection Bureau shows people with low- and moderate-incomes made up only 26.3% of borrowers in 2017, down from 36.6% in 2009. “Profit margins on lending have come down quite a bit,” says Mike Fratantoni, chief economist at the Mortgage Bankers Association, which represents both banks and non-banks. “So a number of banks have de-emphasized their mortgage lending, because there are other business lines they can focus on.”
