SUBPRIME LOANS TO MINORITIES UP.Byline: Gregory J. Wilcox Staff Writer
The frequency of subprime loans Subprime Loan
A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans.
Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. to Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area minorities who refinanced their homes increased slightly in 2002 from a year earlier and is still a concern, a community activist group said Tuesday.
During 2002, the most recent year for which figures were available, African-Americans in Los Angeles were 3.5 times more likely to receive a subprime refinance Refinance
1. When a business or person revises their payment schedule for repaying debt.
2. Replacing an older loan with a new loan offering better terms.
When a business refinances they typically extend the maturity date. loan than whites, up from 3 times more likely in 2001, said Valerie Coffin, national research director for the Association of Community Organizations, known as ACORN.
Latinos were 2.1 times more likely than whites to receive a subprime refinance, up from 1.5 times in 2001, she said.
Subprime loans are typically made to less credit-worthy buyers and have higher interest rates and fees than prime loans.
Washington, D.C.-based ACORN's report compares lending data in 117 metropolitan areas across the country. It is based on income data lenders must report to the federal government. But it does not include borrowers' credit scores.
``This is another example of how divided our country has become. Different markets mean some families are treated fairly while other families continue to get ripped RiPPED are an alternative rock band from Burlington, Ontario, Canada on Sextant Records/EMI Distribution. The band formed in 1994, and were originally called "Ripped Emotions". off,'' ACORN National President Maude Hurd said in a statement.
The news was not all bad for the Los Angeles area, though, because it did not rank among the top 11 metropolitan regions with greatest concentration of subprime refinances to African-Americans or Latinos.
The greatest concentration of subprime loans to African-Americans was 40.7 percent in Houston. For Latinos, it was 29.2 percent in the Providence-Fall River-Warwick, R.I., metro area This article is about the music production team. For the article about population centers, see metropolitan area.
Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. .
In the Los Angeles metropolitan area 30.5 percent, or roughly one out of three, refinance loans to African-American homeowners were from subprime lenders. For Latino homeowners 18.3 percent, or one out of every five, refinance loans were in the subprime market.
Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Norman, a board director for the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Mortgage Bankers Mortgage Banker
A company, individual or institution that originates, sells and services mortgage loans.
Don't confuse a mortgage banker with a mortgage broker. Association based in Sacramento, views the ACORN report in a positive light.
``Is this a case of the glass half full or half empty?'' he said. ``One out of three loans to African-Americans were from subprime lenders. That means two out of three were not. For Latinos one out of every five were subprime which means that four out of five were not.''
Interest rates hit 40 year lows last year and are now again near that level while housing prices soared to record levels. This, Norman said, means that holders of subprime loans in 2002 have a good opportunity to refinance out of them.
ACORN maintains there is abuse in this market, however, citing statistics from Fannie Mae Fannie Mae: see Federal National Mortgage Association. , the big mortgage company, noting that 30 percent to 50 percent of subprime loans are made to borrowers who could have qualified for prime loans.
Gregory J. Wilcox, (818) 713-3743