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  • Finally, Subprime Foreclosure Rates by Race

    Finally, Subprime Foreclosure Rates by Race

    Many people can't believe that minorities could account for so much of mortgage meltdown, but there are now over 100 million minorities in the U.S. Furthermore, their mortgages tended to be relatively larger than one might expect because they tend to live in fairly expensive urban areas rather than in dirt cheap rural areas.



    A variety of evidence has long pointed toward minorities accounting for a disproportionate fraction of the defaulted subprime mortgage losses that set off the economic crash. This would hardly be surprising since the government pushed hard to increase lending to minorities of marginal creditworthiness in the name of increasing minority homeownership. The Clinton Administration teamed up with leftist groups like Obama’s colleagues at ACORN to push for more lending to minorities. The Bush Administration stepped up the pace, denouncing down payments as barriers holding minorities back from the American Dream, in part to convert the growing Hispanic population into homeowning Republicans.

    But, like the guns of Singapore in 1941, the government’s statistics-collecting apparatus is designed only to make sure that minorities are getting enough loans, not to count how often they default on their mortgages. So, we’ve been lacking direct data on foreclosure rates in the current Housing Bubble.

    Back in October, my reader Tino calculated from the federal Home Mortgage Disclosure Act database that minorities got half the subprime cash (for home purchases and refinancings) handed out in the big years of 2004-2007. Mortgage dollars (prime and subprime) for home purchases leant to Hispanics went up 691% from 1999 to 2006 and 397% for blacks (but only 218% for Asians and about 100% for whites). In other words, mortgage lending to Hispanics almost octupled from 1999 to the peak of the Housing Bubble in 2006. Thus, a sizable majority of defaulted dollars lost are in just four heavily Hispanic states: California, Arizona, Nevada, and Florida (what Wall Street called the “Sand States”).

    But, what about foreclosure rates by race?

    http://www.nationalpolicyinsti...osure-rates-by-race/

  • #2
    Finally, Subprime Foreclosure Rates by Race

    Many people can't believe that minorities could account for so much of mortgage meltdown, but there are now over 100 million minorities in the U.S. Furthermore, their mortgages tended to be relatively larger than one might expect because they tend to live in fairly expensive urban areas rather than in dirt cheap rural areas.



    A variety of evidence has long pointed toward minorities accounting for a disproportionate fraction of the defaulted subprime mortgage losses that set off the economic crash. This would hardly be surprising since the government pushed hard to increase lending to minorities of marginal creditworthiness in the name of increasing minority homeownership. The Clinton Administration teamed up with leftist groups like Obama’s colleagues at ACORN to push for more lending to minorities. The Bush Administration stepped up the pace, denouncing down payments as barriers holding minorities back from the American Dream, in part to convert the growing Hispanic population into homeowning Republicans.

    But, like the guns of Singapore in 1941, the government’s statistics-collecting apparatus is designed only to make sure that minorities are getting enough loans, not to count how often they default on their mortgages. So, we’ve been lacking direct data on foreclosure rates in the current Housing Bubble.

    Back in October, my reader Tino calculated from the federal Home Mortgage Disclosure Act database that minorities got half the subprime cash (for home purchases and refinancings) handed out in the big years of 2004-2007. Mortgage dollars (prime and subprime) for home purchases leant to Hispanics went up 691% from 1999 to 2006 and 397% for blacks (but only 218% for Asians and about 100% for whites). In other words, mortgage lending to Hispanics almost octupled from 1999 to the peak of the Housing Bubble in 2006. Thus, a sizable majority of defaulted dollars lost are in just four heavily Hispanic states: California, Arizona, Nevada, and Florida (what Wall Street called the “Sand States”).

    But, what about foreclosure rates by race?

    http://www.nationalpolicyinsti...osure-rates-by-race/

    Comment


    • #3
      So, you have "whites" accounting for 4%, Hispanic around 7%, and "blacks" around 10% ending in 2007. So, if all foreclosures represent a percentage value of 100% and the total foreclosures being reported by "race" is 21%, then what happened eo the other 79%?
      "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

      Comment


      • #4
        WHAAAAATTTT??? Retards Not In There??? unacceptable!!!
        I Prefer advanced, more Aware individual! And The short Bus ROCKS!!! LOL.

        Whats Up buddy.
        P.S. i rented This kamasutra video, And i think dolly Is gonna need Some surgery. I Tryed Duct Tape. But I Think a professional is required. Get The new Card yet???
        USC and Legal, Honest Immigrant Alike Must Fight Against Those That Deceive and Disrupt A Place Of Desirability! All Are Victims of Fraud, Both USC and Honest Immigrant Alike! The bad can and does make it more difficult for the good! Be careful who y

        Comment


        • #5
          <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
          As per unanimous request I will be posting my educational insight to enlighten the masses from time to time.

          The graph is not so simple Hudson. I'm sure you're aware of that. Question is, why try to discredit it?

          Anyhow, here is how it works. Each point on the graph represents the percentage of mortgages initiated in the year given that defaulted in 2007. For example. Of those loans opened in 1999. About 9% defaulted in 2007 for blacks, 5% for hispanics, and 2% for whites. </div></BLOCKQUOTE>
          The question is really not to discredit the graph, but "race" has nothing to do with why foreclosures have occurred. Again, most people misinterpret "income inequality" when attempting to do economic analysis of wages or compensation, such as this graph tries to do. the other problem with the graph is that foreclosures soared in 2007, yet according to this graph, it dropped. The data presented does not match the quantified data being presented that does not include race. Of the states hit hardest, Massachuessetts was 19, while Texas was 12 and California was 4th.

          BTW: Hispanic is not a race, but an ethnic group. That is why you see "white-non Hispanic" and "white-Hispanic" on the Census data or other ethnic/race data.
          "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

          Comment


          • #6
            <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
            What surprises me about Hudson's response is the missed occasion to prop up his preferred race of which he isn't a member. But then again. It would have required credence to the article. Slam one or forsake the other. Must have been tough. </div></BLOCKQUOTE>
            The TARP money has some cause to the foreclosures Davdah, however, it does not represent all of the resources used for sub prime mortgage lending or traditional mortgage lending.

            As ot my "preferred" race, you are married to one, or maybe not anymore
            "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

            Comment


            • #7
              Lesson: Government should not use the market to implement social programs. The market efficiently weeded out deadbeats before government mandated loans be given to them. Minorities do not believe in paying debts and bills. This was well known for a long time. They should never be trusted with money.

              Comment


              • #8
                <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                The card came but the issuer with the knowledge of probable 80% tax rates lowered the limit below the balance so they could qualify for some of the TARP money.

                What surprises me about Hudson's response is the missed occasion to prop up his preferred race of which he isn't a member. But then again. It would have required credence to the article. Slam one or forsake the other. Must have been tough. </div></BLOCKQUOTE>

                LOL! yes correct!
                USC and Legal, Honest Immigrant Alike Must Fight Against Those That Deceive and Disrupt A Place Of Desirability! All Are Victims of Fraud, Both USC and Honest Immigrant Alike! The bad can and does make it more difficult for the good! Be careful who y

                Comment


                • #9
                  <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                  You still don't get it???? Ok, one more time for the chart challenged.

                  The pictorial shows the percentage of mortgages that originated in the years given that defaulted in 2007. In short. All mortgages on the graph dropped dead in 07. It was to illustrate when the mortgages originated and by what group.

                  I guess my second comment zoomed over your head. The term wigga should be examined. </div></BLOCKQUOTE>
                  That is not what the chart says Davdah.

                  It does not matter when you bought the home when the foreclosure happens. Say Ed McMahon. It is practically impossible to determine when the mortgage was obtained because of the very nature in the mortgage business. When people can refi, take equity, or mortgages are sold from one bank to another, etc, the determination of when the money is used or when the home is bought is practically indeterminable, even if you look at a deed search (not to mention a time consuming process).

                  The problem is this site aong with the OP is attempting to blame minorities, like your wife Davdah, for the mortgage crisis. Again, there is a relationship between bankruptcies and foreclosures, between economic downturns and foreclosures, but attempting to blame a race or ethnic group is just plain ridiculous, not to mention borders on xenophobia and racism.
                  "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

                  Comment


                  • #10
                    <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                    <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">As ot my "preferred" race, you are married to one, or maybe not anymore </div></BLOCKQUOTE>

                    Lets see. Asked for a new prada purse. Just re-cemented the pool, </div></BLOCKQUOTE>

                    Sorry, Davdah, but you need to reel her in. Steer her toward Coach or D&B - reasonable considering the price of Pradas!!!! Two grand for a handbag????? That's over two months of groceries for me!!!!

                    Comment


                    • #11
                      OR??? Buying a Prada, And returning it 3 Times to Get Just The Right one!!!
                      Conclusion: is not the End product. Is The process! Game Of The Shopping!!! That satisfies!!!
                      USC and Legal, Honest Immigrant Alike Must Fight Against Those That Deceive and Disrupt A Place Of Desirability! All Are Victims of Fraud, Both USC and Honest Immigrant Alike! The bad can and does make it more difficult for the good! Be careful who y

                      Comment


                      • #12
                        prada, Coach, loi baton. conclusion = women Are crazyyyyy!!!! Really ****s Their A S S E S Are so juicy!!! God is laughing!! iS GAME, jOKE!!! nO SEATS in the prominent women Stores For the guys To rest. Ha Ha!!!
                        Intentional!!!!
                        USC and Legal, Honest Immigrant Alike Must Fight Against Those That Deceive and Disrupt A Place Of Desirability! All Are Victims of Fraud, Both USC and Honest Immigrant Alike! The bad can and does make it more difficult for the good! Be careful who y

                        Comment


                        • #13
                          <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                          When the subject of purses came up I asked one question. How many do you have? I don't understand the big deal. They all look pretty much the same. They do the same thing. Carry a bunch of junk. Why is one 20.00 and another 2000? I absolutely refused to spend that kind of money. I told the sales person to quit it with the fake italian accent and get real with their prices. The look I got! </div></BLOCKQUOTE>

                          Exactly. They serve one purpose, to carry things, so who cares what brand? I never got s.ucked up into the purse thing!!!!! But, I notice alot of younger ladies (t.eenagers) walking around with name brands. What are their parents thinking? Creating spoiled rotten brats. I worry alot about turning our country over to the next generation.

                          Comment


                          • #14
                            <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                            What? You didn't read the article linked to the chart? You should have. It matches what I observed here in San Diego.

                            The chart itself isn't labeled clear enough to explain what it does. Reading the article and following the link to the original reveals the truth of the matter.

                            It isn't xenophobia to see truth and recognize there are differences. White men can't jump. A funny movie but it is true. Performance will illustrate reality even if it goes against PC thinking. And why aren't there many asians playing basketball? And why aren't they on the chart? Read the article. Beyond the print it has to do with culture and being cheap, LOL. </div></BLOCKQUOTE>
                            Davdah,
                            I read the blog, not article, from Steve Sailer's website, which is where the OP got her information. Steve Sailer even misused the information by the Boston Federal Reserve. And perhaps you should read it. On page 8, it states, <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">The exact cause of the high correlation between subprime lending and subsequent foreclosures
                            is to some extent still an open question. </div></BLOCKQUOTE> or you can look at the conclusion on page 22, it states, <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">One potential criticism of the above argument is that one could minimize Type II error
                            by requiring proof that a borrower is likely to default. However, as a practical matter, this
                            would be extremely difficult to enforce. Tax documents and even credit reports in many
                            cases would not suffice, as many borrowers in need of assistance are likely suffering from
                            very recent adverse events. Instead, policymakers would need to obtain and verify current information on income, wealth, employment status, and perhaps even more personal events, such as marital status. This would be extremely costly. Furthermore, the results from Table 6 suggest that even if qualification requirements reduced Type II error by half, principalreduction would still not make sense for three of the four groups. </div></BLOCKQUOTE> And then you have the issuee of home ownership. Even Boston Fed stated that there were just as many minority owned home sales as purchases, thus the net effect of minoirty owned homes in the subprime market was not affeced as much.

                            This is in direct contrast to what Steve Sailer has said in his blog. If you read the blog, it is really an attack on minority home ownership, not foreclosure rates. And blaming minorities, especially black and Hispanic ownership, has really circumvented the debate on the benefits and weakenesses of sub prime mortgage lending.

                            So, if you truly want to educated yourself Davdah, why don't you read Subprime Facts: What (We Think) We Know about the Subprime Crisis and What We Don’t.
                            "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

                            Comment


                            • #15
                              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
                              The report failed to say what happens next. In years prior to the fiasco a foreclosure would usually not result in a substantial bank loss. </div></BLOCKQUOTE>
                              So, Steve Sailer and you are now reinterpreting the report to fit your political agenda. Again, if you bothered to read the actual report, it did not say any of what you or Steve Sailer is stating. None at all.

                              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Often the home would be repossessed by the bank. It would be put up for sale with the price set at the loan balance. If it sold for more the overage would be returned to the person who defaulted. There were cottage industries for just this purpose to insure original borrowers received this overage. </div></BLOCKQUOTE>
                              Well, Duh, it is called a short sale Davdah, and the bank is not required to agree, but often odes to minimize its losses. But really, this has nothing to do with subprime mortgages, race, and home ownership. You are comparing apples to oranges here and attempting to state you know something when in reality you do not.

                              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Now, things have changed. In most cases the banks will list the home for substantially less than the loan amount. Which is what caused several institutions to fail. It is typical that a foreclosed home will sell for 100,000 or more under the loan balance. In CA most re-sold foreclosure resulted in a net loss of that or more. </div></BLOCKQUOTE>
                              Again Davdah, we have a glut in the market. You should know economics 101. When there are too many products available and not enough buyers, what happens to price: it falls, assuming everything else remains equal. We had this in the 1980's when the S&L crisis came about.

                              But the real problem I see here is that you are no where even attempting to explain how race and ownership has anything to do with the subprime issue. Again, read the report, I know its about 30 pages too long for you and it might take you a week to understand, but read the report.

                              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> It is said every cloud has a silver lining. This is no exception. Although this cloud be omnious and black in nature the upside is sweet for a select few. CA goes through this real estate cycle every 10 years or so. A price correction of around 20% to the negative is common in those disaster years. This one was a bit different. The correction was about 70%. It timed with the general collapse perfectly which pushed the prices that much further down. </div></BLOCKQUOTE>
                              Yes, there are people who will attempt to make money. All one has to do is get up early on Saturday Morning and turn to either the Sci Fi channel or ION and you will have a glutteny of infomercials trying to sell books on how to make money in this housing environment. Of course, they say "no money down" and if you follow my steps, you will be on your way to become a millionaire."

                              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Most are running for cover and avoiding real estate. A mistake. Now is the time to buy. Keep in mind the only direction is up from the gutter prices that currently exist. Same holds for the stock market. Avoid gold and treasuries though. As soon as the economy starts to turn they will plummet. </div></BLOCKQUOTE>
                              Again, because of the credit crunch, most people cannot buy a home right now, even with 10% or 20$ down payment if they are a first time homebuyer. In about a year or two, the market will change because the banks will need to loosen the credit in order to survive, unless interest rates go sky high. But the FED, to provide growth in the market will keep interest rates low. Thus the disequilibrium of the market.

                              But again, what does your response have anything to do with race and home ownership Davdah. That was the crux of Steve Sailer's blog. In essence, he blamed ACRORN, who deserves some blame, for allowing certain minorities to use sub prime mortgage financing to purchase homes and thus caused the crash. But what you have response has nothing to do with agreeing or disagreeing with Steve Sailer. After all, you "observed" the same thing in San Diego, did you now?
                              "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

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