Before the housing crisis, toxic subprime loans were deeply embedded in the mortgage market in the Twin Cities and were highly targeted towards communities of color. These loans contributed eventually to the foreclosure crisis and the staggering drops in housing values that disproportionately affected people of color, stripping many moderate- and low-income communities of enormous amounts of housing wealth. While subprime lending is much less common today, lack of access to credit continues to plague communities of color. Income differences alone do not explain past and current lending disparities.
Institute on Metropolitan Opportunity, Twin Cities in Crisis: Unequal Treatment of Communities of Color in Mortgage Lending (2014).