Foreclosure Prone Loans Made Disproportionately to Minorities!
A new report by the National Community Reinvestment Coalition (NCRC) shows that minority consumers, regardless of income level, are most at risk of receiving high-cost home mortgage loans. High-cost loans represent the riskiest and most poorly underwritten home mortgages, millions of which have fallen into foreclosure in the last two years. The study, Income Is No Shield Against Racial Differences in Lending II, examined subprime and near prime (Alt-A) loans from more than 219 metropolitan areas, as reported under the Home Mortgage Disclosure Act data from 2006, the most recent publicly available data. The data provides details on all of New Jersey.
“The data reminds us that the current housing crisis was overwhelmingly the result of the explosion of bad loan products in financially vulnerable communities. It is not surprising that foreclosures have been concentrated among African-Americans and Latinos, because predatory and problematic loans are most prevalent in those communities,” said John Taylor, President and CEO of NCRC.
Click here to read the full report.
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