Todays Free Press addresses the issue of subprime loans and their effect on Detroit and minority homeowners. National studies of wealth show that the average white household has 20+ times the wealth of The average African American household. The biggest contributor to wealth is home ownership. The subprime market was designed to give hope to low income households, with an underlying guarantee that, not only would that hope be dashed when the exorbitant monthly rates could not be paid, ultimately they would be worse off than when they started. There are plenty of lawsuits that need to be filed. By the way, I think I heard subprime lending may be coming back...... While the research studies are plentiful, just read the following HUD summary of 1998 mortgages. HUDs analysis of almost one million mortgages reported to HMDA in 1998 clearly demonstrates the exponential growth in subprime lending and its disproportionate impact on low-income and, particularly, minority homeowners and communities throughout the nation. This concentration of subprime activity leaves these homeowners with significant costs of subprime loans. These borrowers may also be vulnerable to predatory lending practices. Despite the progress made by prime lenders in reaching these markets, the growing concentration of subprime loans in both low-income and minority communities, strongly suggest that much more can be done by both primary and secondary market participants to expand access to the prime lending market. HUDs analysis clearly demonstrates the need for timely and concerted Federal action in this area - both to expand access to prime lending in these communities and to protect subprime borrowers from the dangers of predatory lending. freep/story/money/business/michigan/2015/01/24/subprime-detroit-morgan-stanley/22286935/
Posted on: Sun, 25 Jan 2015 14:00:39 +0000
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