Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosure

Posted under Resources on November 21, 2011

From the Center for Responsible Lending:

As the nation struggles through the fifth year of the foreclosure crisis, there are no signs that the flood of home losses in America will recede anytime soon. Among the findings in this report, Lost Ground, 2011, we show that at least 2.7 million households have already lost their homes to foreclosure, and more strikingly, that we are not even halfway through the crisis.

Lost Ground, 2011 builds on the Center for Responsible Lending?s longstanding efforts to document the severity and demographic dimensions of the foreclosure epidemic. In 2006, CRL published Losing Ground, which projected subprime foreclosures and the attendant costs to homeowners prior to
the collapse of the housing market. In 2010, we published Foreclosures by Race and Ethnicity: the Demographics of Crisis, which estimated completed foreclosures through 2009 and the disparate rates of foreclosure for different racial and ethnic groups. Assessing the scope of the crisis remains daunting, since there is no single, nationwide source of information on the number of foreclosures, the demographics
of those affected, or the neighborhood distribution of foreclosed properties. In this report, we use an expanded dataset to update our previous findings and extend the scope of our analysis.

The report addresses three key questions. First, we consider who has lost their home to foreclosure, and who is still at risk. We look at both the race/ethnicity and income of borrowers, and explore how the impact of foreclosures on different socioeconomic and demographic groups varies depending on where they live. Second, we look at what kind of mortgages different borrowers received to better understand the relation-
ship between loan characteristics and defaults. Finally, we examine where the crisis has had the greatest impact, assessing which areas and types of neighborhoods have been most affected.