This study reinforces (for Texas) the findings of several national studies: race matters. The race/ethnicity of borrowers is a powerful factor in the penetration of subprime lending in Texas communities. Our study shows that subprime loans are concentrated in geographical areas with a higher concentration of minority residents. Even after accounting for other factors, the likelihood of getting a subprime loan increases for minority borrowers, especially Black borrowers. Among higher income borrowers, the distinction between subprime lending to Whites and subprime lending to minorities is stark.