Mortgage defaults

mortgage due

Even among upper-income buyers, 54.4 percent of blacks and 48.9 percent of Hispanics used high-cost loans. By contrast, just 16.4 percent of higher-income white buyers received such loans.

Were the mortgage agents overtly racist? No, probably not. But this does imply a systemic bias against people of color that resulted in them only being offered expensive mortgages. Else how to explain that upper-income people of color (who presumably weren’t buying  in dicey areas and who have financial resources)  had virtually the same percentage of high cost loans as did low-income people of color?

Notices of default jumped 45.4% in California in December compared to November.

“We have yet to see the real impact from the ARM resets,” [said a company that tracks California foreclosures.]

That is genuinely scary.