Beyond Subprime Lending: Using Lending Study Data to Stabilize Neighborhoods In a Post-Foreclosure Environment

Report by Phyllis G. Betts, Carol Gothe, Adam Foster
June 2009

(Inactive) Center for Community Building and Neighborhood Action   (Memphis)

This Summary of Key Findings and Implications from the 2006 Lending Study analysis will – if used to mobilize stakeholders and marshal resources – position us to cope with the fallout from subprime lending and its flip-side -- the tight mortgage market -- that is sure to disadvantage lower income and African American borrowers and neighborhoods that were already disproportionately disadvantaged by subprime lending. Key findings and implications are outlined below and illustrated by accompanying tables, graphs, and maps. As noted above, this Summary is accompanied by an in-depth technical report with detailed appendices on particular lenders and geographic areas in Memphis and Shelby County. The summary is organized in four sections:

1. Trends in Home Ownership and the Housing Market

2. Subprime Lending by Non-Local Lenders Stabilizes in 2006:

Geographic and Racial Disparities Continue

3. 2008 Foreclosures Trending Upward about 10% from 2007

4. Marginal Buyers and Debt-Driven Equity Borrowing Associated with Home Ownership in High Foreclosure Neighborhoods

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