Female Borrowers in the Washington Mortgage Market
Presented by: Megan Gallagher The Urban Institute for
NeighborhoodInfo DC
May 11, 2007 Stepping Stones Research Briefing
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Background
• Washington housing market cools • But prices remain high • Borrowers with subprime loans at risk of foreclosure and equity stripping as interest rates rise • Information about mortgage trends among women is essential for advocates and policymakers
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Key Findings
• Female borrowers comprise growing share of region’s borrowers • Taking loans form subprime lenders at higher rates than they were in the past • Patterns of borrowing do not differ greatly between female and male borrowers • Highlights need to education buyers and regulate lenders
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This analysis
Home Mortgage Disclosure Act (HMDA) Data
- 1997, 2001, 2005
Female borrowers are defined as female applicants with no coapplicant DC and close-in suburbs
Montgomery County, MD Prince George's County, MD Arlington County, VA Fairfax County, VA - Alexandria city, VA - Fairfax city, VA - Falls Church city, VA
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Share of loans to female borrowers has increased since 1997
100% 80% 60% 60%
55%
40% 21% 22% 20%
32% 19% 23%
33%
35%
0% Lone Female Borrowers Lone Male Borrowers 1997 2001 2005 Coapplicants
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The region’s female borrowers Income
$55-75k 27% $75-95k 21%
$35-55k 22% $15-35k 4%
$95k or more 26%
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The region’s female borrowers Race and ethnicity
Hispanic 13%
Black 40% White 30%
Asian/Pacific Islander 8%
Other 9%
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The region’s female borrowers Location of home Prince
George's County, MD 37%
Montgomery County, MD 21%
Arlington County, VA 3%
District of Columbia 13%
Fairfax County, VA 22% Fairfax city, VA 1% Alexandria city, VA 3%
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Females comprise growing share of loans and loans from subprime lenders
100% 80%
60%
40% 21% 20% 22%
32% 26% 25%
37%
0% All loans 1997 Loans from subprime lenders 2001 2005
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African American and Hispanic borrowers have higher rates of loans from subprime lenders
50% 40%
30%
20%
10%
0%
African American African American African American Hispanic Hispanic Hispanic White White White
Lone Female Borrowers
Lone Male Borrowers
Coapplicants
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Summary and Implications
• Female borrowers comprise a greater share of all borrowers, but many have subprime loans that can damage their financial health • It is critical that they receive financial counseling to avoid the pitfalls of the subprime market • Must implement and enforce regulations that prohibit predatory practices
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For more information, see:
http://www.NeighborhoodInfoDC.org/
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