_____ mortgage applicants are most frequently offered subprime loans, which charge the highest interest.

• A. White American
• B. Asian American
• C. African American
• D. Hispanic

Answer: (C)

Subprime lending is about offering high-cost loans to borrowers with weaker credit, often with steeper interest rates and extra fees. In housing finance, African American applicants have historically been much more likely to be steered into these riskier, more expensive products. This pattern reflects a long history of discrimination and structural barriers in lending—where minority borrowers faced limited access to favorable prime loans and were disproportionately targeted for subprime terms. The combination of discriminatory steering and higher-risk pricing meant African American borrowers bore higher interest and costs, contributing to greater challenges in building wealth through homeownership. While other groups can encounter subprime options too, the historical pattern shows African American applicants face this outcome most frequently, making them the best fit for the statement.