subprime lending
New Yorkers Just Love Risky Loans
According to a new Furman Center report, New Yorkers took out more subprime loans and refinanced more loans than the nation on average.
To wit, in New York City in 2006, 21 percent of all home loans and 27 percent of all home refinancings were sub-prime. Compare that to the national averages of 13 percent and 16 percent, respectively.
“In recent years, homebuyers in New York took out subprime loans at rates higher than most other large cities and increasingly relied on piggyback loans, leaving our homebuyers highly leveraged and vulnerable to default," said Vicki Been, director of the Furman Center. "Should we see a downturn in real estate prices, New York City may face serious challenges from increasing numbers of foreclosure filings." read more »
