CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

High-Cost Mortgage Loans

Definition

Percentage of first lien home purchase loans that are at least three percentage points and second lien home purchase loans that are at least five percentage points above the yield on a comparable term treasury security, first three quarters of 2009.

Description

The growth of high-cost mortgage loans, often referred to as subprime loans, corresponded with an increase in abusive lending, creating a crisis for American families. Under the guise of providing credit to borrowers with poor credit histories, predatory lenders often target elderly, minority and poor families with lending products that can lead to a loss of home equity. According to research by the Center for Responsible Lending, one in five subprime loans end in foreclosure – more than eight times the rate for mortgages in the prime market. Subprime prepayment penalties and balloon payments help fuel the problem. Rigorous research shows subprime loans are costly, applied unfairly and, given the risk of foreclosure, dangerous.

For more information, please visit the Center for Responsible Lending.

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High-Cost Mortgage Loans

StatePercent of Home Loans
that are High-Cost (%)
Rank
United States  5.2%   
Alabama  6.2%  40 
Alaska  1.7% 
Arizona  4.5%  22 
Arkansas  9.8%  49 
California  4.9%  26 
Colorado  2.9%  12 
Connecticut  2.5% 
Delaware  4.7%  25 
District of Columbia  2.7% 
Florida  5.4%  31 
Georgia  5.6%  33 
Hawaii  1.0% 
Idaho  1.9% 
Illinois  6.1%  39 
Indiana  4.9%  27 
Iowa  5.8%  35 
Kansas  5.8%  37 
Kentucky  7.0%  44 
Louisiana  10.0%  50 
Maine  2.6% 
Maryland  2.9%  12 
Massachusetts  3.0%  15 
Michigan  7.4%  45 
Minnesota  4.1%  21 
Mississippi  12.3%  51 
Missouri  6.4%  42 
Montana  2.7%  10 
Nebraska  6.4%  41 
Nevada  5.0%  29 
New Hampshire  3.0%  16 
New Jersey  3.2%  17 
New Mexico  3.7%  20 
New York  3.5%  19 
North Carolina  3.3%  18 
North Dakota  5.6%  34 
Ohio  5.8%  36 
Oklahoma  7.5%  46 
Oregon  1.9% 
Pennsylvania  5.5%  32 
Rhode Island  4.6%  23 
South Carolina  5.0%  28 
South Dakota  4.6%  24 
Tennessee  6.5%  43 
Texas  8.0%  47 
Utah  2.7%  10 
Vermont  2.5% 
Virginia  2.9%  14 
Washington  2.5% 
West Virginia  8.5%  48 
Wisconsin  6.0%  38 
Wyoming  5.2%  30 

Source

Home Mortgage Disclosure Act. Washington, DC: Federal Financial Institutions Examination Council, 2009. Data provided by PolicyMap.

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