One of the MSN.com articles over the last few days has been a feature on single mothers impacted by the mortgage crisis. The statistics if accurate are stunning.
The article reports that single female homebuyers are now 22% of the housing market, up from 14% in 1995. FNMA projections are for that to increase further to 28% by 2010. This statistic itself does not surprise me.
The article claims, without analysis of credit and other factors, that women with similar incomes are more likely to receive a subprime loans. African American women were even more likely to receive a subprime loan.
Of course, subprime lending no longer exists, but the problems with the loans remain as does the issue of discrimination, if these figures are not misrepresented.
The article states that a consumer survey indicates women were 46% more likely to receive a subprime loan that man with similar incomes. The article does not address other qualification parameters.
Another report from the Urban Institute claimes that 75% of the women facing foreclosure in Washington DC could have qualified for better financing terms. The details about this statistic are vague in the report.
The basic points in the article are that details of subprime adjustable loans were not disclosed and explained, borrowers were given higher rate loan programs when they were qualified for better loan programs, they were not told that they qualified for better terms, in many cases were told lies about their qualifications, and were actually mislead into thinking that they were not qualified, these practices were more common against women in general and African American women in particular.
These statements involve, in my mind, fraud, steering, deceit, and discrimination.
The article quotes the Association of Community Organizations for Reform Now, ACORN, in claiming that these mortgage loans were conducting with deceipt and fraud.
The article quotes the Consumer Federation of America amd cites a report dated December 2006 on women and subprime lending. This report does seem to attempt to consider credit profile characteristics and to have reviewed over 4 million mortgage transactions.
This is just not my experience. I have fought for too many home buyers to qualify for FHA financing.
I do think a serious problem for several years was the mortgage brokerages that specialized in subprime loans without offering FHA. Many indicated that the borrower could refinance in 2 to 3 years when there was really no way to become qualified for a prime loan in that time.
Chattanooga has an Office of Multi Cultural Affairs. Its focus is to education about housing rights and to identify discrimination. At one of the meetings, I asked how prevelant discrimination is.
The answer surprised me, that discrimination remains common.
My question is what is your experience with respect to housing discrimination.
Is it common for women or minorities to be directed to certain areas by real estate agents?
Is it common for women or minorities to receive worse loan terms than men with similar qualifications?
Richard Smith
American Acceptance Mortgage, Inc
Toll Free 888-474-9920 Cell 423-280-0345
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.
FHA, VA, Rural Development, Reverse Mortgages, Construction Permanent, Renovation, FHA Renovation
Mortgage lending offices located in Chattanooga, TN
rsmith@aamonline.com