CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Households with Savings Accounts

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Change in Consumers with Subprime Credit

Change in Average Credit Card Debt

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

High-Cost Mortgage Loans

Reports & Graphics

Definition

Percentage of home purchase loans that are high cost, 2010.

High cost is defined as loans with a rate spread of 1.5 percentage points for a first lien loan and 3.5 percentage points for a second lien loan between the loan’s APR and the estimated average prime rate offer.

Description

This measure describes the percentage of home purchase loans that have a significantly higher-than-average APR. Typically, lenders have targeted elderly, minority, and low-income families with these products, which put these families at greater risk of foreclosure and loss of home equity. The prevalence of these high-cost, or subprime, mortgage loans during the housing bubble of the mid-2000s led to the financial crash and subsequent recession. However, since the passage of the Dodd-Frank Act and the introduction of the CFPB new measures have been taken to prevent their spread. 

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High-Cost Mortgage Loans

StatePercent of Home Loans
that are High-Cost (%)
Rank
United States  2.47%   
Alabama  3.96%  42 
Alaska  0.95% 
Arizona  1.08%  12 
Arkansas  4.50%  46 
California  0.85% 
Colorado  0.88% 
Connecticut  0.74% 
Delaware  1.60%  20 
District of Columbia  2.14%  25 
Florida  2.33%  32 
Georgia  2.46%  35 
Hawaii  0.90% 
Idaho  1.59%  19 
Illinois  1.51%  17 
Indiana  2.19%  26 
Iowa  2.52%  36 
Kansas  2.94%  41 
Kentucky  4.20%  43 
Louisiana  5.29%  48 
Maine  2.29%  30 
Maryland  1.22%  14 
Massachusetts  0.49% 
Michigan  4.34%  45 
Minnesota  1.61%  21 
Mississippi  5.54%  50 
Missouri  2.84%  39 
Montana  1.85%  23 
Nebraska  2.72%  38 
Nevada  1.27%  15 
New Hampshire  0.90% 
New Jersey  0.95% 
New Mexico  2.25%  29 
New York  1.55%  18 
North Carolina  2.86%  40 
North Dakota  2.45%  34 
Ohio  2.19%  26 
Oklahoma  5.47%  49 
Oregon  1.09%  13 
Pennsylvania  2.23%  28 
Rhode Island  0.73% 
South Carolina  2.38%  33 
South Dakota  2.69%  37 
Tennessee  4.20%  43 
Texas  5.24%  47 
Utah  1.00%  11 
Vermont  1.98%  24 
Virginia  1.48%  16 
Washington  0.92% 
West Virginia  7.22%  51 
Wisconsin  1.67%  22 
Wyoming  2.31%  31 

Source

Home Mortgage Disclosure Act. Washington, DC: Federal Financial Institutions Examination Council, 2010. Data accessed through PolicyMap.

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