Report: State Ranks at Top in Mortgage Crisis

Jackson Clarion-Ledger (MS) (03/20/08); Joyner, Chris
Based on Mortgage Bankers Association data for the 2007 third quarter, a report by the Mississippi Economic Policy Center ranks Mississippi first for mortgage delinquencies and subprime lending and eighth in terms of foreclosures. Center director Ed Sivak says the state was vulnerable to high-risk mortgages because of its poor housing stock and low median income. "I think it was a little predictable when you think that four out of every 10 mortgages entered into (in the state) were subprime," he remarks. With more than 15,000 mortgages in foreclosure across the state, Sivak expects five times as many homes to experience declines in value as a result. While the center suggests that a state task force be established to look into solutions--such as tougher rules against predatory lenders and plans to help borrowers refinance into conventional mortgages--Mississippi House Banking Committee Chairman George Flaggs, D-Vicksburg, says nothing can be done until lawmakers meet again in January 2009.