CRL Report: Record Foreclosures Expected for Subprime Market

[TexasLawyer]

CRL Report: Record Foreclosures Expected for Subprime Market
Haley Settle | 12.18.06

The United States could be facing one of its worst mortgage foreclosure crises, with an anticipated $100 billion or more lost from record foreclosures in the subprime market, according to the Center for Responsible Lending (CRL). The default of subprime mortgages originated from 1998 through the first half of 2006 is expected to hit low-income and minortiy borrowers the hardest.

The report— which will be released in full during a live, phone-based national news event (with full, two-way Q&A) at 1:30 p.m. ET tomorrow— is based on the first nationwide study of how subprime mortgages perform and includes projected foreclosure data for all major metropolitan statistical areas.

Speakers for the phone-based news event include Michael D. Calhoun, president of the CRL; Pat Vredevoogd Combs, president of the National Association of Realtors; and Wade Henderson, executive director of the Leadership Conference on Civil Rights.

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http://www.dsnews.com/view_story.cfm?id=689

[sarcasmo]

1. Kick and Nom for the truth about the Monkeys grand economy.

[sarcasmo]

2. Dupe.

[TexasLawyer]

3. civil rights

I hadn't thought much about the civil rights aspect of foreclosure, but working poor Americans being unable to hang onto their homes (especially in the face of less-than-upfront lending practices) may be a major angle on this looming problem.

Report shows poorer areas seeing most foreclosures
By Scott Van Voorhis

Boston Herald Business Reporter

Friday, December 15, 2006 - Updated: 02:38 AM EST

http://business.bostonherald.com/realestateNews/view.bg?articleid=172095

[Tansy_Gold]

4. economic racism

The ways in which racial and ethnic minorities have been subtly excluded from "the American dream" are many. And when they weren't excluded, their ability to accumulate "wealth" was restricted.

Because minority families have historically been excluded, they have fewer resources to fall back on in tough times, whether those resources are accumulated savings or investments, family members with extra assets, or even friends and community members. They often pay higher interest rates, which means the things they buy -- houses, cars, Christmas presents -- cost more for the same "value."

And now they're being hit again, after all the predatory lenders got them suckered in.

I don't know if there's an updated edition, but Oliver and Shapiro's "Black Wealth/White Wealth: A New Perspective on Racial Inequality" (Routledge, 1995)offers an illuminating analysis.


Tansy Gold

[StClone]

5. ARM's, Over-bought, overly indebted, bad Economy

Four factors coinciding to create record negative terms.

[truthisfreedom]

6. with the new bankrupcy laws, is it impossible to protect your home by filing chapter 11/7?

What's up with that?

[Roland99]

7. I don't believe it's impossible. My understanding of the new law is that....

if you have income above allowable expenses, then that income must go to paying back creditors.

Those allowable expenses would, I'd imagine, be along the lines of IRS allowable expenses for housing, food, transportation costs.

[thingfisher]

8. This is the outcome of fraud on a massive scale.

It was criminal for mortgage bankers to dangle these very risky loans in front of desperate people wanting to own a home. Interesr only mortgages? ARMS? Making it easy for marginal people to qualify for long term loans of dubious nature supported the efforts of mortgage lender to prop up sales and keep the money flowing while averting their eyes from the probability that the loans would default within a few years.
Now we will see a new groupo of people relegateed to the underclass, while thier forfeited homes become available for further exploitation by the mortgage lenders, assuming that they can scrape up a market.

[Viva_La_Revolution]

9. Link to released report here...

full report
Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners
http://www.responsiblelending.org/pdfs/FC-paper-12-19-new-cover-1.pdf

Executive Summary
http://www.responsiblelending.org/pdfs/Fclosure-exec-summary-standalone.pdf