Industry News

Women more likely to receive subprime home loans

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Women are more likely to receive subprime home mortgages than men and these higher rates of subprime lending make it harder for households headed by women to build wealth through home ownership. That's according to a study released Thursday by the Consumer Federation of America, which found that in 2005, about a third of women took out mortgages with interest rates over 7.66 percent – well above the average prime mortgage rate of 5.87 percent – compared to about a quarter of men. "The high levels of subprime lending among women compromise their ability to steadily accrue equity by paying off their mortgage – one of the easiest and most effective pathways to building wealth in America," said Nancy Register, associate director of Consumer Federation of America and national director of America Saves, a social marketing campaign to encourage lower- and moderate-income households to save and build wealth. The study examined 4.4 million mortgage originations throughout the...