Subprime Lending in Indiana

Subprime lending is the practice of charging higher interest rates and/or fees to borrowers who have impaired credit and therefore are a greater risk.

In this study, we use data available through the Home Mortgage Disclosure Act (HMDA) to look at the extent and pattern of loans made by subprime lenders.

In general, we found that minorities and minority communities receive a greater share of subprime loans than white borrowers and white communities. Low-income borrowers and communities also receive more subprime loans than upper-income borrowers. These patterns are stronger with subprime refinances than overall.