Mortgage
October 15, 2007
Study: Subprime More Prevalent in Minority Nabes
A new study from NYU’s Furman Center for Real Estate and Urban Policy shows that subprime lending in the city last year was much more common in minority-heavy neighborhoods than in mostly white neighborhoods, irrespective of median income levels. For example, 44 percent of loans in East Flatbush, a predominantly black and Hispanic neighborhood, were subprime; in Sheepshead Bay and Gravesend, which are majority white, 10.8 percent of mortgages were from subprime lenders. All three neighborhoods have median incomes in the $40,000 to $50,000 range. Though the study didn’t take into account things like borrowers’ credit histories, it definitely raises questions about whether subprime lenders have engaged in discriminatory practices by offering white borrowers loans with better rates. “There certainly is a disgraceful element here, but how big it is, we don’t know,” said Julia Vitullo-Martin, a senior fellow at the Manhattan Institute. “Is it a few rogue lenders, or is it an extensive problem that requires a regulatory response? We don’t know yet.”
Study Finds Disparities in Mortgages by Race [NY Times]
Tilden Avenue photo by polychrome
October 10, 2007
Renegotiating a Mortgage: One Man's Quest
A reader emailed us the letter he was planning to send to his lender in an effort to renegotiate the terms of his loan. We thought it would be interesting to get readers' input, both in terms of changes/improvements to the letter as well as predictions about the likelihood of his success.
Dear Madam or Sir:
I am writing to be considered for a loan modification. I am currently in year three of a 5yr fixed mortgage at a rate of 5.75%. As I weigh my options, I am asking that MORTGAGECO extend me a lower, fixed rate for a term of 30 or 20 years. I have every intention of exploring my mortgage options with other lenders but first I wanted to contact you. I would be happy to remain a customer of MORTGAGECO under the proper terms.
In no way should this be considered a plea...
Continue reading "Renegotiating a Mortgage: One Man's Quest"