Plots & Ploys: Equal-Opportunity Crisis

Wall Street Journal (07/23/08) P. C12; Simon, Ruth; Wei, Lingling; Corkery, Michael
As it turns out, a large percentage of subprime mortgage victims are not poor or minority, as has been the consensus opinion. A new ComplianceTech study shows that middle- and upper-income borrowers accounted for more than 66 percent of high-rate mortgages issued in 2006 and that more than 55 percent of such loans were made to white consumers. The study, which analyzed data filed under the Home Mortgage Disclosure Act, did still report that subprime mortgages account for a disproportionate percentage of the loans given to low-income and minority homeowners. However, the findings suggest that elected officials and lenders should consider more broadly who is being hurt by rising delinquencies when seeking solutions to the mortgage debacle.