Industry News

Low-income borrowers choke on mortgage debt

Harvard study finds unequal access to home loans

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Lacking the skills and information needed to shop for the best mortgage products available in the marketplace, many low-income and low-wealth home buyers and mortgage borrowers are saddled with high-cost mortgage debt, according to Harvard University's Joint Center for Housing Studies. In a briefing held at the offices of the Board of Governors of the Federal Reserve today, the Joint Center for Housing Studies released its comprehensive assessment of the challenges faced by community based organizations (CBOs) – and their public, private and philanthropic partners – in expanding access to capital in low-income and low-wealth communities. The 18-month study entitled, "Credit, Capital, and Communities: The Implications of the Changing Mortgage Banking Industry for Community Based Organizations," was funded by the Ford Foundation. "New computer and telecommunications technologies have spawned a revolution in mortgage finance that has enabled millions of low-income and low-...