Report Reveals 2.2 Million Borrowers Face Foreclosure on Subprime Home Loans
Billions of Home Ownership Wealth to be Lost by Minority Americans; Chart Contains Detailed MSA-Specific Projections of Home Foreclosure Impacts
WASHINGTON, Dec. 19 /PRNewswire/ -- A new Center for Responsible Lending (CRL) study reveals that 2.2 million American households will lose their homes and as much as $164 billion due to foreclosures in the subprime mortgage market. Titled, "Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners," the CRL study is the first comprehensive, nationwide review of millions of subprime mortgages originated from 1998 through the third quarter of 2006.
CRL's research suggests that risky lending practices have triggered the worst foreclosure crisis in the modern mortgage market, projecting that one out of five (19.4%) subprime loans issued during 2005-2006 will fail.
Source: Center for Responsible Lending, Raleigh, N.C.
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Many of us who operate in the retail sector need to pay special attention to these signals as this type of activity will have an impact on available disposable income.
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1 comment:
The way the economy, the crazy weather, and war, it makes you think if whats to come in the near future. Good post, keep up the good work.
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