Subprime Swell
Since 1994, the subprime mortgage lending market has grown nine-fold and become a $385 billion market. Yet, despite this growth, subprime loans are 10 times more likely than conventional loans to go into foreclosure.
This fact sheet, part of a series dedicated to economically empowering families across the country, tells how a surge in predatory lending practices is dampening the already elusive dream of homeownership for many low-income Americans. Readers will learn what the Annie E. Casey Foundation is doing to reverse this trend and help all families afford — and then afford to keep — their very own homes.
For many low-income families, homeownership represents their only real chance to save a substantial amount of money and advance to the middle class. Accumulated home equity also gives these families a financial edge when retiring, paying for college or navigating a crisis.