Business opportunity

The Fort Worth Star Telegram printed a story on Friday, reporting the results of a study which found that minorities pay significantly higher than average interest rates for home mortgages.

There is clearly a huge business opportunity here. I am seriously considering quitting my job and starting a mortgage company which would take advantage of this racism-motivated injustice. The article was a bit unclear about the size of the disparity in mortgage interest rates, but for the sake of illustration, let's say that it is 3%. If a white person could get a mortgage at a 7% interest rate, a black person with the same income and credit score would pay 10%. I plan to operate my mortgage company according to a few very simple principles. I will not consider race in my mortgage approval process. I will consider only the applicant's ability to repay the loan based on their available income and credit history. Regardless of race, everyone will pay 2% more than the market rate. This means that any white person who compares rates will finance with someone else. And it means that any minority who compares rates will finance with me, because my rate will be 1% lower than what they can get elsewhere. My clients will be stupid white people and smart minorities. Mainly the latter. Not only will I make millions of dollars by financing thousands of clients at higher-than-market rates, I will also feel good knowing that I have not discriminated based on race like everyone else.