This brief provides a primer on subprime lending and how it has affected homeownership among African Americans. Its story begins in the mid-1990s with the increase in subprime lending for home purchases, home improvement, and refinancing. How the primary and secondary markets for subprime loans operate and how African Americans and households belonging to other racial/ethnic subpopulations have been served by them are detailed. This brief concludes with a discussion of principles and recommendations for enhancing the operation of the subprime market to better meet the needs of African Americans and other disproportionately low-income populations.
Read our report, African Americans and Homeownership: The Subprime Lending Experience, 1995 to 2007 – November 2007 – Brief #2, here.
Click here to read African Americans and Homeownership: Separate and Unequal, 1940-2006 – Brief #1.