Wednesday, January 18, 2012

New Report: Disparities in Mortgage Lending and Foreclosures.

Report, from Center for Responsible Lending in North Carolina, is HERE.  No Oregon or Portland data, but important findings like those shown in this graph and in these excerpts:
Racial and ethnic differences in foreclosure rates persist even after accounting for differences in borrower incomes.
Racial and ethnic disparities in foreclosure rates cannot be explained by income, since disparities persist even among higher-income groups. For example, approximately 10 percent of higher-income African-American borrowers and 15 percent of higher-income Latino borrowers have lost their home to foreclosure, compared with 4.6 percent of higher income non-Hispanic white borrowers. Overall, low- and moderate-income African Americans and middle- and higher-income Latinos have experienced the highest foreclosure rates

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. ... the disparities were especially pronounced for borrowers with higher credit scores. For example, among borrowers with a FICO score of over 660 (indicating good credit), African Americans and Latinos received a high interest rate loan more than three times as often as white borrowers.
Originally created and posted on the Oregon Housing Blog.

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