Wednesday, April 7, 2010

Minority Home Ownership in the Boom and Bust

The Urban Institute’s Metro Trends report, Investor Owners in the Boom and Bust, addresses the rise and fall of mortgage lending over the last decade in the hundred largest U.S. metropolitan areas. The report states that in both the boom and bust minority home-owners were disproportionately affected. A higher percentage of African American and Latino mortgage seekers had high-cost loans during the housing boom. In today’s climate, with housing credit tightened, minority borrowing has disproportionately declined. Latino’s are experiencing the largest declines (falling from 18% of all borrowers in 2006 to just 10% in 2008). The report suggests, among other actions, that state and local policymakers create policies that encourage long term investments and home ownership (instead of “flipping”).

The report addresses several issues regarding investor owners over the last decade. To read the Urban Institute’s full report.

For the Urban Institute's Metro Trends.

For the Federal Trade Commission Consumer Facts about High Cost Loans.

For policies to Reduce Preditory Financial Practices.

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