Abstract:
In June 2010, the Center for Responsible Lending published Foreclosures by Race & Ethnicity: The Demographics of a Crisis, which showed the disparate impacts of foreclosures on African American and Latino homeowners and other communities of color. That report relied on foreclosure rates from a national dataset of mortgages that were matched with loan information collected under the Home Mortgage Disclosure Act (HMDA).
Like the previous report, the current research examines the geographic and demographic dimensions of foreclosures by relying on proprietary loan information matched with HMDA data. Here we also incorporate a third data source and new loan-matching methodologies, allowing us to examine outcomes on a larger portion of the mortgage market, and more variables related to those outcomes (e.g., loan type), during the peak years of the subprime boom. Our results are based on approximately 27 million matched loans, representing 63 percent of mortgages included in HMDA data that were originated between 2004 and 2008.