The most recent mortgage lending data reveal that Clevelanders receive high-cost subprime mortgage loans at more than double the rate of the national average, according to the latest research report from the Housing Research & Advocacy Center. Almost one-quarter (24.25%) of home mortgage loans in the City of Cleveland were high-cost subprime loans in Cleveland in 2008, compared to 11.6% nationwide. By contrast, 13.06% of mortgage loans in Cuyahoga County were high-cost subprime loans. The Housing Center also found that African Americans and Hispanics in Cleveland and Cuyahoga County are more likely to obtain home mortgage loans with high interest rates compared to white residents.
In the last month, the Housing Center published two reports that analyze 2008 mortgage lending data (the most recent available) in Cleveland and Cuyahoga County. The data reveal that in the City of Cleveland, African Americans obtained high-cost mortgage loans 32.33% of the time, compared to 25.54% of the time for Hispanics and 19.54% for whites. In Cuyahoga County as a whole, African Americans obtained high-cost mortgage loans 24.85% of the time, compared to 20.25% of the time for Hispanics and 10.30% for whites.
In Cleveland, the neighborhoods with the greatest concentration of high-cost lending were North Broadway (44.00% of all originations), Union-Miles (39.19%) and St. Clair-Superior (38.89%), compared to the Citywide average of 24.25%. In Cuyahoga County, the greatest overall incidence of high-cost lending occurred in East Cleveland and Newburgh Height (38.46% each), compared to the Countywide average of 13.06%.
Read the press release: Cuyahoga Cleveland Factbook Press release September 2010.
Access the City of Cleveland Community Lending Factbook September 2010.
Access the Cuyahoga County Community Lending Factbook 2010.