According to a study by the Federal Reserve [PDF] blacks are 3 times more likely to borrow through sub-prime lenders than whites. Sub-prime mortgages are typically 2% above prime rates.
[New York Times] Blacks Hit Hardest by Costlier Mortgages
The new report, based on data collected from 8,853 lenders, is the Fed’s first attempt to look for evidence of racial and ethnic discrimination in the booming business in exotic mortgages and subprime lending.
Of course, Blacks would be hardest hit by subprime lenders mainly because subprime lenders tend to operate in Urban neighbourhoods, and not middle-class or rich suburbs. Studies have shown that African Americans have been traditionally discriminated at established banks and therefore have had to resort to subprime lenders for their banking needs. This coupled with the high rate of illiteracy and low education is a potent hunting ground for subprime lenders.