4:02 PM
Julio Barreto
A recent study released by the National Community Reinvestment Coalition (NCRC) showed that the subprime mortgage crisis is more wide-spread by state, congressional district, race and ethnicity than has been previously reported.
The report, entitled, Politics and the Subprime Mortgage Meltdown: An Examination of Disparities by Congressional District, Political Party, Caucus Affiliation and Race, was authored by Maurice Jourdain-Earl, Managing Director of ComplianceTech. Founded in 1992, ComplianceTech provides specialized lending intelligence services to financial institutions nationwide. It is known for its expertise in identifying market opportunities; formulating lending benchmarks; and implementing emerging markets, CRA and fair lending best practices.
Here is a list of some of the study’s findings:
1. Twenty-one Republicans represented congressional districts with what the reports calls “high risk” districts. These are districts with a “high number of and percentage of subprime loans".
2. Twenty-three Democrats represented similar type districts.
3. The 44 high risk districts are concentrated in nine states: Florida; California; Arizona; Maryland; Illinois; Nevada; Georgia; Missouri; and, Virginia.
4. Florida, Nevada, Maryland, and Arizona were the stats with the highest percentage of subprime loans.
5. States with highest concentration of congressional districts with a high number and percentage of black subprime loans include Maryland (5); Florida, Georgia and Illinois (three apiece); Michigan, New York and Virginia (two apiece); and. Missouri, Alabama, New Jersey, Tennessee and Wisconsin one each.
6. Of the five congressional districts with the highest number of subprime loans, four were represented by Republicans. The five in order were Reps. Alcee Hastings (D-FL), Trent Franks (R-AZ) Mario Diaz Balart (R-FL); Jerry Lewis (R-CA) and Mary Bono (R-CA).
7. People who were white received the largest percentage of subprime loans while minority borrowers and communities received the highest percentage of subprime loans.
8. Districts with the highest percentage are represented by minority Members of Congress. They include Jesse Jackson, Jr. (D-IL); Kendrick Meek (D-FL); Bobby Rush (D-IL); Edward Pastor (D-AZ); and, Lacy Clay (D-MO).
9. The two top congressional districts with high white subprime rates are the districts represented by Trent Franks (R-AZ), Jeff Flake (R-AZ) and the district formerly held by Jon Portor (R-NV).
10. Almost half of high volume lending to whites took place in Florida.
11. The districts with more than 3,000 black subprime rate loans were dominated by those represented by the black caucus; only five of 26 districts with 3,000 or more subprime loans were represented by white congressmen.
The report cited four lessons to be learned from the study:
1. Subprime lending impact some states and congressional districts unevenly.
2. In spite of the disproportionate impact that existed within their congressional districts, some Members of Congress did not support The Housing and Economic Recovery Act (HERA) which was intended to address the issue.
3. The lending to minority groups indicates a disproportionate level of default which will occur with in those communities.
4. The housing market grew out of control due to lack of congressional oversight and the failure to regulate high cost lending.
Older Workers Affected by Recession
The recent recession has had a major impact on job opportunities for older workers, according to a report released by The Urban Institute. The report, How Did Older Worker Fare in 2009?, reviewed data from the Current Population Survey to determine how older workers fared in 2009.
The report looked at age differences in unemployment rates; labor force participation rates; employment rates; duration of unemployment spells and earnings. It compares data from 2009 with data gathered in 2007. The Current Population Survey is a monthly survey of 50,000 households which is the basis for the government's official unemployment statistics.
Among the reports findings include:
1. Unemployed workers age 55-64 and 65 and older were more than double the numbers in 2007.
2. 2009 unemployment was 7.2 percent for men between the ages of 55-64; 6 for women in the same age group; and 6.7 percent for men 65 and older; and 6.1 for women in the same age group.
3. Unemployment was more common for men than women in all ages because male dominated professions were hit hardest by the recession.
4. Unemployment was much higher for older blacks, Hispanics, and workers with limited education.
5. Older workers tended to spend more time out of work.
The report indicates that more will need to be done to address the needs of older workers as a larger share of the population enters the 55 and older age group.
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The report, entitled, Politics and the Subprime Mortgage Meltdown: An Examination of Disparities by Congressional District, Political Party, Caucus Affiliation and Race, was authored by Maurice Jourdain-Earl, Managing Director of ComplianceTech. Founded in 1992, ComplianceTech provides specialized lending intelligence services to financial institutions nationwide. It is known for its expertise in identifying market opportunities; formulating lending benchmarks; and implementing emerging markets, CRA and fair lending best practices.
Here is a list of some of the study’s findings:
1. Twenty-one Republicans represented congressional districts with what the reports calls “high risk” districts. These are districts with a “high number of and percentage of subprime loans".
2. Twenty-three Democrats represented similar type districts.
3. The 44 high risk districts are concentrated in nine states: Florida; California; Arizona; Maryland; Illinois; Nevada; Georgia; Missouri; and, Virginia.
4. Florida, Nevada, Maryland, and Arizona were the stats with the highest percentage of subprime loans.
5. States with highest concentration of congressional districts with a high number and percentage of black subprime loans include Maryland (5); Florida, Georgia and Illinois (three apiece); Michigan, New York and Virginia (two apiece); and. Missouri, Alabama, New Jersey, Tennessee and Wisconsin one each.
6. Of the five congressional districts with the highest number of subprime loans, four were represented by Republicans. The five in order were Reps. Alcee Hastings (D-FL), Trent Franks (R-AZ) Mario Diaz Balart (R-FL); Jerry Lewis (R-CA) and Mary Bono (R-CA).
7. People who were white received the largest percentage of subprime loans while minority borrowers and communities received the highest percentage of subprime loans.
8. Districts with the highest percentage are represented by minority Members of Congress. They include Jesse Jackson, Jr. (D-IL); Kendrick Meek (D-FL); Bobby Rush (D-IL); Edward Pastor (D-AZ); and, Lacy Clay (D-MO).
9. The two top congressional districts with high white subprime rates are the districts represented by Trent Franks (R-AZ), Jeff Flake (R-AZ) and the district formerly held by Jon Portor (R-NV).
10. Almost half of high volume lending to whites took place in Florida.
11. The districts with more than 3,000 black subprime rate loans were dominated by those represented by the black caucus; only five of 26 districts with 3,000 or more subprime loans were represented by white congressmen.
The report cited four lessons to be learned from the study:
1. Subprime lending impact some states and congressional districts unevenly.
2. In spite of the disproportionate impact that existed within their congressional districts, some Members of Congress did not support The Housing and Economic Recovery Act (HERA) which was intended to address the issue.
3. The lending to minority groups indicates a disproportionate level of default which will occur with in those communities.
4. The housing market grew out of control due to lack of congressional oversight and the failure to regulate high cost lending.
Older Workers Affected by Recession
The recent recession has had a major impact on job opportunities for older workers, according to a report released by The Urban Institute. The report, How Did Older Worker Fare in 2009?, reviewed data from the Current Population Survey to determine how older workers fared in 2009.
The report looked at age differences in unemployment rates; labor force participation rates; employment rates; duration of unemployment spells and earnings. It compares data from 2009 with data gathered in 2007. The Current Population Survey is a monthly survey of 50,000 households which is the basis for the government's official unemployment statistics.
Among the reports findings include:
1. Unemployed workers age 55-64 and 65 and older were more than double the numbers in 2007.
2. 2009 unemployment was 7.2 percent for men between the ages of 55-64; 6 for women in the same age group; and 6.7 percent for men 65 and older; and 6.1 for women in the same age group.
3. Unemployment was more common for men than women in all ages because male dominated professions were hit hardest by the recession.
4. Unemployment was much higher for older blacks, Hispanics, and workers with limited education.
5. Older workers tended to spend more time out of work.
The report indicates that more will need to be done to address the needs of older workers as a larger share of the population enters the 55 and older age group.
Interesting Read
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By Zachary A. Goldfarb
The Washington Post
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By Hope Yen
The Associated Press
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The Washington Post
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By Carol D. Leonnig
The Washington Post
Thin wall separates lobbyist contributions and earmarks
By R. Jeffrey Smith
The Washington Post
Massa resigns; Democrats' ethical lapses could threaten hold on power
By Perry Bacon Jr.
The Washington Post
Rep. Frank questions safety of Fannie Mae, Freddie Mac investments
By Zachary A. Goldfarb
The Washington Post
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By Josh Kurtz
Congressional Quarterly
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By Shailagh Murray
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