Report: We’re not even halfway through the foreclosure crisis
A new report from the Center for Responsible Lending offers a stark view of just how far we have to go before the foreclosure crisis is behind us. Here are just a few of the findings from “Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosures”:
1. We are not even halfway through the foreclosure crisis.6.4 percent of mortgages made between 2004 and 2008 have ended in foreclosure, and an additional 8.3 percent are at immediate, serious risk.
3. Although the majority of affected borrowers have been white, African-American and Latino borrowers are almost twice as likely to have been impacted by the crisis.
4. Racial and ethnic differences in foreclosure rates persist even after accounting for differences in borrower incomes.
5. Loan type and race and ethnicity are strongly linked. African Americans and Latinos were much more likely to receive high interest rate (subprime) loans and loans with features that are associated with higher foreclosures,specifically prepayment penalties and hybrid or option ARMs.
6. Foreclosure rates by income groupings vary by housing markets.
7. Impacts vary by neighborhood. Low- and moderate-income neighborhoods and neighborhoods with high concentrations of minority residents have been hit especially hard by the foreclosure crisis.
You can read the full report here.