ComplianceTech, an Arlington, Virginia consulting firm, released a report today indicating that a large percentage of subprime borrowers aren't poor or minority-group members (as the market is often portrayed) -- more than two-thirds of the high-rate mortgages issued in 2006 were made by middle- and upper-income borrowers, and more than 55% of those loans went to white borrowers.
The study, which analyzed data filed under the federal Home Mortgage Disclosure Act (HMDA), suggests that lenders and policy makers seeking solutions to the mortgage crisis need to understand how many groups of Americans are being hurt by rising subprime delinquencies says ComplianceTech Managing Director Maurice Jourdain-Earl, the study's author, in a Wall Street Journal article. "We need to broaden the prism," says Jourdain-Earl, "and realize that there are a number of families, many of whom are suburban or even rural, who are suffering."
Foresight Analytics, a California-based provider of real estate market consulting service with a focus on real estate market analysis and forecasting, estimates that construction-loan delinquencies among all property types reached 9% in the quarter, up from 7.2% in the first quarter and 2.4% in the year-earlier period. The data are based on a preliminary analysis of federally insured banks' second-quarter earnings results and regulatory filings. Among loans to single-family-housing developers, an estimated 12% of the loans were at least 30 days past due, compared with 10.8% in the previous quarter and 3.1% a year earlier.
For more real estate news and information, visit Blumberg Capital Partners.
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