Hispanics not catching up to whites economically

This would seem relevant to thinking about immigration policy, but almost nobody draws the connection. Annie Lowrey writes in the NYT:

The Urban Institute study found that the racial wealth gap yawned during the recession, even as the income gap between white Americans and nonwhite Americans remained stable. As of 2010, white families, on average, earned about $2 for every $1 that black and Hispanic families earned, a ratio that has remained roughly constant for the last 30 years. But when it comes to wealth — as measured by assets, like cash savings, homes and retirement accounts, minus debts, like mortgages and credit card balances — white families have far outpaced black and Hispanic ones. Before the recession, white families, on average, were about four times as wealthy as nonwhite families, according to the Urban Institute’s analysis of Federal Reserve data. By 2010, whites were about six times as wealthy. 

The dollar value of that gap has grown, as well. By the most recent data, the average white family had about $632,000 in wealth, versus $98,000 for black families and $110,000 for Hispanic families.

A commenter writes in:

Please note that the MEDIAN wealth for white families was 110,729 in 2010. For black households the "wealth" drops to 4,995 and Hispanics "wealth" is 7,424. These are figures released by the United States Census Bureau. 

Lowrey (is she Ezra Klein's girlfriend?) continues:

Two major factors helped to widen this wealth gap in recent years. The first is that the housing downturn hit black and Hispanic households harder than it hit white households, in aggregate. Many young Hispanic families, for instance, bought homes as the housing bubble was inflating and reaching its peak, leaving them saddled with heavy debt burdens as house prices plunged in places like suburban Phoenix and inland California.

So, lenders overestimated Hispanic ability to pay off big loans.

Discriminatory lending practices were also a factor. “We know that communities of color, their rate of subprime or predatory loans was twice what it is in the overall population,” said Tom Shapiro, the director of the Institute on Assets and Social Policy at Brandeis University. 

So, lenders underestimated Hispanic ability to pay off big loans.

Which one is it?

Something similar may be happening as the housing recovery takes hold. “Some people talk about it in terms of a land grab,” said Professor Hamilton of the New School, as mainly white investors are buying foreclosed homes from disproportionately minority owners. “As the housing market starts to appreciate, some of those minority buyers might not be back.”

Clearly, the failure of minorities to pay their old mortgages means we'll need more programs to fight discrimination and racial inequality by encouraging fast-buck lenders to give them new mortgages. What could possibly go wrong?