The Urban Institute reported that people of color lost more housing wealth than Whites did between 2007 (before the financial crisis), and 2010. Another example, from Pew, shows that Blacks are twice as likely than their White peers to use payday loans, and Latino borrowers are 1.5 times as likely. Recent research from the Center for Responsible Lending found that each year, payday loans strip $8 billion from the pockets of borrowers. Overall, Asian, Black and Hispanic households tend to use costlier alternative financial services, like payday loans, at a rate 1.2 to 2.5 times higher than White households, according to the Federal Deposit Insurance Corporation (FDIC).
