Study shows big disparity in home loan rates in border town

Monday, November 21, 2011  

American Indians are more likely to be denied home loans in Farmington, New Mexico, than any other racial or ethnic group, according to a new study.

Based on 2009 data, 48 percent of Indian applicants were denied loans. In comparison, the rejection rate was 16 percent for Whites and 30 percent for Hispanics.

"It's obvious by looking at this data that there clearly is something going on here," Jay Peterman, an associate planner with the city's Community Development Department, told The Farmington Daily Times.

Peterman said poor credit is the primary reason for being denied a loan. Among Indian applicants, 81 percent were denied due to credit, compared to 41 percent for Whites.

But the loan approval rates for Indians and Whites of the same income level showed a disparity. Only 26 percent of Indian applicants received loans, compared to 65 percent for Whites of the same income level.

Get the Story:
Report: Minorities face fair housing problems in Farmington (The Farmington Daily Times 11/21)