Furman Ctr. Contact: Amy Armstrong 212.998.6697
Despite a small decline between 2005 and 2006, New York City’s rate of subprime lending remains much higher than the rest of country and other large cities
Disparities persist in 2006: Black borrowers in New York were four times more likely to receive subprime loans as White borrowers; Hispanic borrowers were three times more likely
Newly released data from the Home Mortgage Disclosure Act (HMDA) show that for the first time this decade, the national rate of subprime lending decreased in 2006, according to an analysis by the Furman Center for Real Estate and Urban Policy a joint initiative of NYU’s School of Law and the Robert F. Wagner School for Public Service. After several years of incremental increases, the national rate dropped five percentage points, from 17.9 percent to 12.8 percent between 2005 and 2006. During this same time period, the rate of subprime lending in New York City also dropped, but it declined less significantly, dropping only three percentage points, from 23 percent to 19.8 percent. As a result, the rate of subprime lending in New York City remains much higher than in the rest of the country, and because of the smaller decline, the disparity between subprime lending rates in New York City and the rest of the country was actually larger in 2006 than it was in 2005.
For a copy of the report, go to: http://www.law.nyu.edu/realestatecenter/documents/FurmanCenterHMDAAnalysis.pdf
“For better or for worse, New York City’s housing market behaves differently,” commented Furman Center Director Vicki Been. “On the one hand, we’ve seen New York City
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