A national community group has identified 10 cities, including four cities in Texas, that face the greatest risk of "rate shock" and foreclosures due to high concentrations of adjustable-rate subprime mortgages."With 60% of subprime loans set to have their interest rate change by the end of 2006, ARMs pose a huge threat to the security of individual homeowners and entire neighborhoods," according to the ACORN study. ACORN researchers used Home Mortgage Disclosure Act data to examine subprime lending in 130 metropolitan areas. They concluded that Detroit; Memphis; Jackson, Miss.; McAllen, Texas; El Paso, Texas; Laredo, Texas; Brownsville, Texas; Flint, Mich.; Springfield, Ill.; and Birmingham, Ala., have the highest concentrations of subprime loans. "Too many of our neighbors are being steered into ARMs without being given an option for a fixed rate and without being given an explanation of the risks," ACORN president Maude Hurd said. ACORN is calling for tougher regulation of lenders and mortgage brokers to protect borrowers from being placed in unsuitable loans.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
2h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
6h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
9h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
10h ago -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
11h ago -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24