By Kate Berry
As policymakers and consumer advocates seeks ways to narrow the racial gap in homeownership, a new report suggests nonbanks are doing a better job of lending to minorities than banks in the largest state.
The findings by the Greenlining Institute, a nonprofit based in Oakland, Calif., show the eight largest nonbank mortgage lenders in California lent more of their respective portfolios to Black and Hispanic homebuyers than top bank lenders in the state.
Independent mortgage bankers say the main reason for the difference in lending to minorities is that nonbanks are focused solely on mortgage lending rather than selling a wide array of products to the same customers.
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