Blacks and Hispanics twice as likely to get high-cost mortgages
A study by the National Community Reinvestment Coalition released today suggests that blacks and Hispanics are much more likely to have risky and poorly-underwritten loans. But interestingly, the disparity is pretty significant even among more wealthy borrowers.
During 2006, middle- and upper-income (MUI) African-Americans were twice or more as likely to receive high-cost loans as MUI whites in 155 of the metro areas analyzed (71.4 percent). Furthermore, MUI Hispanics were twice or more as likely to receive high-cost loans as MUI whites in 45 of the metro areas analyzed (22.5 percent).
In comparison, while low- and moderate-income (LMI) minorities are more likely to receive high-cost loans than LMI whites, the disparity was less significant than disparities among MUI borrowers.
The report goes on to rank the cities with the biggest disparities. They are as follows:
1. Milwaukee-Waukesha-West Allis, WI
2. Minneapolis-St. Paul-Bloomington, MN
3. Huntsville, AL
4. Ann Arbor, MI
5. Hartford-West Hartford-East Hartford, CT
6. Bridgeport-Stamford-Norwalk, CT
7. Greenville, NC
8. Philadelphia, PA
9. Essex County, MA
10. Durham, NC
11. Raleigh-Cary, NC
12. Dayton, OH
13. Birmingham-Hoover, AL
14. Fort Wayne, IN
15. Cleveland-Elyria-Mentor, OH
16. Roanoke, VA
17. Rochester, NY
18. Harrisburg-Carlisle, PA
19. Lubbock, TX
20. Warren-Troy-Farmington Hills, MI
Eastat Office Tower Plan Would Spare Historic Boston Restaurant
Boston-based developer Eastat Realty Capital L.L.C. has submitted a notice of project change with the Boston Redevelopment Authority in connection with a proposed $140 million, 24-story, 248,000-square-foot office building in Boston’s theater district. To Bostonians, the point of the project, however, seems less what will be built than what won’t be coming down; the plan would leave the adjacent Jacob Wirth Co. building untouched.The President’s Reluctant Signature
President Bush signed the big housing bill today. He didn’t love it and put his signature on it privately rather than in a big press event in the Rose Garden. There isn’t even a mention of the bill, the largest housing initiative since the Great Depresssion, on the White House’s official Web site.
There’s something in here for just about everyone, which is why the President didn’t like it. Here are some details you may have missed in all the coverage, courtesy of the California Association of Realtors:
The law will help an estimated 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan.
The bill lifts Fannie Mae and Freddie Mac loan limits to the greater of either $417,000 or 115% of an area’s median home price, up to $625,500. That’s a big help to homeowners in high cost markets.
There’s a first-time home buyer tax credit, which gives first-time buyers a tax refund worth up to 10% of a home’s purchase price, up to a maximum of $7,500. The refund is actually an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
There are now minimum requirements for mortgage brokers including fingerprinting of loan originators and a nationwide licensing and registration system.
The legislation cracked down on "nonprofits" that were allowing buyers to qualify for FHA loans with no money down by transferring funds from the home seller to the buyer to use as a down payment. Buyers can still accept down payment assistance from family, employers and other nonprofits.
The Community Development Block Grant Programs provides $4 billion for communities to purchase and refurbish foreclosed homes.
Rockland Radisson, Milford Sheraton Sold in Massachusetts
Hodges Ward Elliott, hotel brokerage and investment banking firm, announced the sales of the 127-room Rockland Radisson Hotel and the 173-room Milford Sheraton Hotel. Both properties are located in Massachusetts and were sold to the Linchris Hotel Corp. on behalf of Ashford Hospitality Trust.Bush signs housing rescue law
President Bush on Wednesday signed into law a sweeping housing bill that aims to boost the struggling housing market and bolster mortgage finance giants Fannie Mae and Freddie Mac.ADT Security Leases 14,000 SF in New York City
CB Richard Ellis arranged a 14,000-square-foot lease on behalf of ADT Security Services at 229 West 28th Street in Manhattan, N.Y.Cracking down on mortgage scammers
While Congress and the Bush administration are focusing on bailing out struggling homeowners and financial companies, another group of federal officials are going after the people who helped propel the country into the mortgage crisis.Realm Real Estate Completes Phase I of Palmdale Corporate Center
Realm Real Estate completed phase I of Palmdale Corporate Center, a 240,000-square-foot Class A office project in Palmdale, Calif.SoCal Developers: Bring More Water
California’s traditional sources of water no longer meet the needs of Southern California, according to a study commissioned by the Southern California Leadership Council (SCLC) and other sponsors. Bad news for developers, the study is called “Where Will We Get The Water? Assessing Southern California’s Future Water Strategies.”Extreme Makeover ——-> Extreme Foreclosure
I love this Washington Post story todayabout an extravagant makeover that just went into foreclosure. It seems that the owners took out a big loan against their beautiful home that they were unable to repay. They have not been forthcoming about giving their side of the story to the media. You don't know whether to laugh or cry.
If you hunger for more on this story, check out the WSB-TV, which broke the story.
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