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Your Morning Credit Crunch: More Subprime Meltdown Blues

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Not that we don't already know the subprime mortgage situation is bad, but a new report from the Furman Center reconfirms exactly how much it sucks, noting that foreclosures in New York City shot up 50 percent between 2006 and 2007. The study notes that it's particularly a problem in Latino and African-American communities. Locally, 21 percent of all home loans and 27 percent of refinance loans were subprime, significantly above the national average. The report says that the "apparent progress" in the increase of home loans to African-Americans and Latinos was "largely the result of disproportionate reliance on risky borrowing." African-Americans made up only 19 percent of all borrowers in 2006 in New York City, but received 45 percent of all subprime loans. The data is part of the bigger 2007 report on the State of New York City's Housing & Neighborhoods, which it is still far too early in the day to digest in full.
· Home foreclosures subprime race rise [Metro]
· State of New York City's Housing & Neighborhoods 2007 [Furman Center]