Fast Facts--Home Loans

  • 61% of subprime loans made in 2006 went to people with credit scores high enough to qualify for a loan with better terms.
  • For many loan types, borrowers of color were 30% more likely to receive a higher-rate loan than white borrowers, even after accounting for income and credit.
  • Fannie Mae/Freddie Mac financial losses came mostly from “Alt-A” mortgages, non-traditional loans which are not connected with affordable housing.
  • 94% of subprime loans were made by entities not subject to requirements under the Community Reinvestment Act.
  • Since early 2007 more than 7.5 million homes have entered the foreclosure process.
  • Amherst Securities projects that more than 10 million foreclosures are still ahead.
  • One out of every five homeowners is at serious risk of foreclosure.
  • White homeowners have experienced the majority of foreclosures, but African Americans and Latinos are affected disproportionately.
  • American homeowners have lost 1.86 trillion in home equity, about $20,000 per household.
  • CoreLogic reports nearly 11M homes—22.5% of households with a mortgage—are underwater, owing more than the home is worth.
  • With the new Dodd-Frank rules, lenders must now consider a borrower’s ability to repay a mortgage before approving the loan.
  • Regulators are considering rules that would require borrowers to put down as much as 20% when buying a home.
  • Based on median salaries, an elementary school teacher would need nearly 20 years to save enough to make a 10% down payment on a median-priced home.