Some evidence, including recent Federal Reserve research on consumers holding adjustable-rate mortgages, suggests that awareness could be improved, particularly among borrowers with lower incomes and education levels. 3 This research suggests the need for greater financial literacy and increased access to financial counseling, a point to which I will return.
The release this year and last of mortgage price data gathered under the Home Mortgage Disclosure Act (HMDA) has highlighted a different, but potentially related, concern about access to credit on equal terms. The data show that blacks and Hispanics are considerably more likely than other borrowers to receive higher-priced loans.