Foreclosures Disproportionately Affecting Minority Borrowers

Posted by Orb Staff on June 21, 2010 No Comments
Categories : Mortgage Servicing

imated 17% of Latino homeowners and 11% of African American homeowners have lost their home to foreclosure since 2007 or are now at imminent risk, a new study from the Center for Responsible Lending (CRL) shows. The report – ‘Foreclosures by Race and Ethnicity: The Demographics of a Crisis’ – also shows that minority communities have been disproportionately impacted by foreclosures. The study estimates that 2.5 million foreclosures were completed from 2007 through 2009 and about 5.7 million more are imminent. On completed foreclosures – most on mortgages made between 2005 and 2008 – the CRL estimates that 56% involved a white family. But while 4.5% of white borrowers have lost a home, nearly 8% of both Latino and African American borrowers have gone through foreclosure. The CRL and consumer advocacy groups say the report illustrates the joint need for Congress to create a consumer financial protection agency and for servicers to step up foreclosure prevention efforts. ‘With 17 percent of Latino and 11 percent of African-American homeowners having essentially already lost their homes and estimates that many more foreclosures are on the way, we need Congress to hurry up and pass an independent Consumer Financial Protection Agency,’ comments Shana Smith, president and CEO of the National Fair Housing Alliance. ‘We also need servicers to do whatever is necessary to stop this hemorrhaging now. Enough is enough.’ The report can be read in its entirety [link=http://www.responsiblelending.org/mortgage-lending/research-analysis/foreclosures-by-race-and-ethnicity.pdf]here[/link]. SOURCE: [link=http://www.responsiblelending.org/media-center/press-releases/archives/Demographics-of-a-Man-Made-Disaster.html]Center for Responsible Lending

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