housing at aspensys.com
04-24-2000, 09:12 AM
> HUD has released Unequal Burden: Income and Racial Disparities in Subprime
> Lending in America--a study showing that the number of subprime home loans
> is skyrocketing in predominantly black neighborhoods and low-income
> neighborhoods. While expanded access to credit is critical, there is
> growing evidence that some lenders may be engaged in predatory lending
> that is making homeownership far more costly for blacks and poor families
> than for whites and middle-class families.
>
> Key findings of the Department of Housing and Urban Development analysis
> show that:
>
> 1) From 1993 to 1998, the number of subprime refinancing loans increased
> ten-fold.
> 2) Subprime loans are three times more likely in low income neighborhoods
> than in high-income neighborhoods.
> 3) Subprime loans are five times more likely in black neighborhoods than
> in white neighborhoods.
> 4) Homeowners in high-income black areas are twice as likely as homeowners
> in low-income white areas to have subprime loans.
>
> The HUD study focused primarily on home refinancing loans, which account
> for 80 percent of subprime loans. Subprime lending involves providing
> credit to borrowers with past credit problems, who cannot qualify for the
> conventional prime market. Subprime lending can include predatory lending,
> which hits homebuyers with excessive mortgage fees, interest rates,
> penalties and pre-paid credit life insurance charges that can raise the
> cost of homebuying by thousands of dollars for individual families.
>
> For more information on Unequal Burden: Income and Racial Disparities in
> Subprime Lending in America or to obtain a copy, visit the HUD USER web
> site at: http://www.huduser.org/publications/fairhsg/unequal.html
>
> ************************************************** *************
> Census 2000: How America Knows What America Needs
> Your community's federal funding depends on your response to the Census.
> For additional information, visit http://www.census.gov.
> ************************************************** *************
>
> HUD USER
> P.O. Box 6091
> Rockville, MD 20850
> 1-800-245-2691
> 1-800-483-2209 (TDD)
> 301-519-5767 (fax)
>
> To stay abreast of new PD&R research and resources, subscribe to our
> listserv, HUDUSERNEWS. This free service will automatically send--to your
> e-mail address--publication announcements and other notices from the U.S.
> Department of Housing and Urban Development's Office of Policy Development
> and Research.
>
> To subscribe to HUDUSERNEWS, simply send a message to:
> listproc@aspensys.com
>
> In the body of the message, type: subscribe hudusernews your e-mail
> address
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> Lending in America--a study showing that the number of subprime home loans
> is skyrocketing in predominantly black neighborhoods and low-income
> neighborhoods. While expanded access to credit is critical, there is
> growing evidence that some lenders may be engaged in predatory lending
> that is making homeownership far more costly for blacks and poor families
> than for whites and middle-class families.
>
> Key findings of the Department of Housing and Urban Development analysis
> show that:
>
> 1) From 1993 to 1998, the number of subprime refinancing loans increased
> ten-fold.
> 2) Subprime loans are three times more likely in low income neighborhoods
> than in high-income neighborhoods.
> 3) Subprime loans are five times more likely in black neighborhoods than
> in white neighborhoods.
> 4) Homeowners in high-income black areas are twice as likely as homeowners
> in low-income white areas to have subprime loans.
>
> The HUD study focused primarily on home refinancing loans, which account
> for 80 percent of subprime loans. Subprime lending involves providing
> credit to borrowers with past credit problems, who cannot qualify for the
> conventional prime market. Subprime lending can include predatory lending,
> which hits homebuyers with excessive mortgage fees, interest rates,
> penalties and pre-paid credit life insurance charges that can raise the
> cost of homebuying by thousands of dollars for individual families.
>
> For more information on Unequal Burden: Income and Racial Disparities in
> Subprime Lending in America or to obtain a copy, visit the HUD USER web
> site at: http://www.huduser.org/publications/fairhsg/unequal.html
>
> ************************************************** *************
> Census 2000: How America Knows What America Needs
> Your community's federal funding depends on your response to the Census.
> For additional information, visit http://www.census.gov.
> ************************************************** *************
>
> HUD USER
> P.O. Box 6091
> Rockville, MD 20850
> 1-800-245-2691
> 1-800-483-2209 (TDD)
> 301-519-5767 (fax)
>
> To stay abreast of new PD&R research and resources, subscribe to our
> listserv, HUDUSERNEWS. This free service will automatically send--to your
> e-mail address--publication announcements and other notices from the U.S.
> Department of Housing and Urban Development's Office of Policy Development
> and Research.
>
> To subscribe to HUDUSERNEWS, simply send a message to:
> listproc@aspensys.com
>
> In the body of the message, type: subscribe hudusernews your e-mail
> address
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