Subprime Lending is a Drain on Home Ownership
"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...