From Realtor Magazine Online, Daily Real Estate News December 18, 2008
Properly structured programs to help low-income people buy homes can be sound public policy, according to a study that compares 4,000 low-income and minority homeowners with a similar group of renters.
The study by the University of North Carolina School of Social Work determined that loans with low monthly payments result in borrowers who stay current. They also participate in their communities and vote.
The problem is subprime loans, says Roberto G. Ouercia, director of the Center for Community Self-Help, a nonproft that partners with Fannie Mae and the Ford Foundation to lend mortgage money to low-income borrowers. The study found that borrowers with subprime loans are four times more likely to fall behind.
"If done right, lending to low-income and minority families is good business," says Quercia.
Source: News-Observer, David Ranii (12/18/2008)
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