Latin America Business News
Latinos and Blacks Twice as Likely to Lose Home during Foreclosure Process
Photo: Latinos and Foreclosure
According to the Center for Responsible Lending’s new ‘Lost Ground, 2011’ report 6.4% of homeowners who received loans between 2004 and 2008 have lost their home to foreclosure. These 2.7 million households span all races, ethnicities, and income levels.
Although the majority of affected borrowers have been white, African-American and Latino borrowers are almost twice as likely to have been impacted by the crisis.
Approximately one quarter of all Latino and African-American borrowers have lost their home to foreclosure or are seriously delinquent, compared to just under 12 percent for white borrowers. Asian borrowers have fared better as a whole than Latino and African-American borrowers, but they, too, have been disproportionately affected, especially in some metropolitan areas.
Another key finding were that racial and ethnic differences in foreclosure rates persisted even after accounting for differences in borrowers incomes. Also the study showed the Latinos and African Americans were much more likely to receive high interest, subprime loans with features associated with higher foreclosures.