Subprime Mortgages Draining Homeownership Rate
April 29, 2007
Subprime mortgage lending is turning out to be a drain on the rate of home ownership, according to a study by the Center for Responsible Lending.
The study shows that while the subprime market produced more than $2 trillion in home loans over the past nine years, these loans have led (or will lead) to a net loss of homeownership in the nation of almost a million families.
The reason for this net loss is that only 9 percent of subprime loans went to first-time homebuyers (from year 1998 through 2006). However, over 15 percent of subprime loans ended, or will end, with borrowers losing their homes through foreclosure, CRL reported.
source: Jim Woodard
Posted in All Things San Diego, Lending, Local Business, Real Estate
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