Subprime Lending is a Drain on Home Ownership
Published: March 27, 2007
"Yeah, people got bad mortgages. But others were able to finally buy a home" begins a recent article in a national magazine, repeating the common assumption that subprime mortgage lending has helped increase the overall level of homeownership.
But a new CRL analysis shows that while the subprime market has produced more than $2 trillion in home loans over the past nine years, these loans have led or will lead to a net LOSS of homeownership for almost 1 million families.
The reason for this net loss? From 1998-2006, only 9% of subprime loans went to first-time homebuyers, but over 15% of subprime loans ended (or will end) with borrowers losing their homes through foreclosure.
CRL's rebuttal to MBA -- The Mortgage Bankers Association disputes CRL's findings by recycling discredited arguments.
CRL's Response to Subprime Lenders' Proposed Principles -- Proposed principles are a defense of "business as usual."