Steering and Financing Discrimination are Increasing
Although HDS2000 found that most indicators of discrimination have decreased since 1989, two areas that increased significantly are geographic steering and reduced financing assistance. It appears that geographic steering based on neighborhood racial composition appears to have increased significantly for African Americans since 1989. HDS2000 examines this issue in detail, looking at more spatial levels, types of steering, and steering mechanisms than in the past. It found that editorializing - the practice of providing either positive or negative comments about areas to consider - was the most common means of steering among African Americans.
HDS2000 results also found that "Differences in the assistance with financing that real estate agents provide represents the primary source of adverse treatment facing Hispanic home buyers." Non-Hispanic whites were significantly more likely to receive favorable treatment across the category of financing assistance. For example, agents were less likely to offer help with financing, recommend lenders, or discuss downpayment requirements with Hispanic testers than with non-Hispanic whites. This is a decline over 1989 figures when Hispanics received favorable financing assistance treatment in 32 percent of cases. In 2000, Hispanics were favored in only 24.2 percent of the tests.
Urban Research Monitor March/April 2003