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Highlights Of 2004-2006 Subprime Rate Lending By
Race And Ethnicity
during the period of 2004-2006, Black Americans, compared
to other racial groups, experienced the largest percentage
build-up of subprime rate loans. (Figure 1)
FIGURE 1: 2004-2006 PERCENT OF SUBPRIME RATE LOANS BY RACE
The vast build-up of higher cost subprime rate loans with
Blacks is likely to translate into a disproportionately larger
percent of loans that will experience mortgage defaults and
foreclosures. In 2004, the first year HMDA pricing information
was reported by lenders, more than 30 percent of the Black
conventional first lien 1 to 4 family home purchase and
refinance loans were comprised of higher-cost subprime rate
loans. This was followed by a frequency greater than 50% in
2005 and 2006. during the same period, Blacks also had the
highest average spread on subprime rate loans. (Figure 2)
Page 8 of 27 The Demographic Impact of the
Subprime Mortgage Meltdown