Tuesday, November 22, 2011

African Americans & Latinos Twice As Susceptible To Foreclosures As Whites

Study: African Americans & Latinos Twice As Susceptible To Foreclosure As Whites

Credit.com|November 21, 2011
By Michael Schreiber

The Center for Responsible Lending released a study today that documents a trend in American foreclosures that is startling, yet not surprising.

The study, “Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosures,” co-authored with the Center for Community Capital at the University of North Carolina, Chapel Hill, presents data in support of the claim that African Americans and Latinos are “more than twice as likely to lose their home as white households.”

Beyond that, the study suggests that the foreclosure crisis isn’t even close to being over.

This latest report builds on previous studies by the CRL in the area of ethnicity and foreclosure. In 2006, they published, “Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners,” which predicted the sub-prime housing crisis before it hit, outlining the potentially disproportionate impact it would have on African American and Latino homeowners given the fact that a higher than average number of subprime loans are made in these communities.

In 2010, the CRL further zeroed in on the subject with the report, “Foreclosures by Race and Ethnicity: the Demographics of Crisis.”

It estimated that “17% of Latino homeowners, 11% of African-American homeowners, and 7% of non-Hispanic white homeowners already have lost or are at imminent risk of losing their home.”

Read more: http://articles.businessinsider.com/2011-11-21/news/30427898_1_foreclosure-crisis-loans-resetting-latino-homeowners#ixzz1eUjaRBTO

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