Foreclosure Damage Index

The following statistics apply to mortgages made between 2004-2008 as described in CRL's research, "Lost Ground, 2011." Mortgage statistics for loans made between 2004-2008 % of loans that have ended in foreclosure % of loans at immediate, serious risk % of risky ARMs* that have ended in foreclosure % of fixed rate loans or standard ARMs # of lost homes -- African-American borrowers # of lost homes -- Latino borrowers

Numbers
(2.7 Million loans) (3.6 Million loans)

6.4%

8.3%

12.8% 3.3% 397,000 635,000 1.5 million 12% 25% each

# of lost homes -- white borrowers

% of lost homes or at serious risk -white borrowers % of lost homes or are at serious risk -- Latino and African-American borrowers

Likelihood that an African2.8x as often American borrower received a subprime loan as whites

2.2x Likelihood that a Latino borrower as often received a subprime loan as whites
Likelihood that an African-American 3x as often or Latino borrower with good credit received a subprime loan as whites

1.7x Likelihood that an Asian borrower as often with good credit received a risky as whites ARM
Low-income Income group that fares worst in borrowers weak housing markets Hig-income Income group that fares worst in borrowers "boom & bust" markets

25% 20%

% of foreclosures or at risk in lowincome neighborhoods % of foreclosures or at risk in highminority neighborhoods

these features: interest rate resets of less than five years; negative amortization; or interest-only payment schedules. A standard ARM is an adjustable-rate mortgage that does not include any of those features.

* We define risky "ARM" as adjustable-rate mortgages with any one of

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