Sub-Prime Mortgage Crisis Will Cause Greatest Loss of Black Wealth in History.
A newly released report says the sub-prime loan mortgage crisis currently gripping the nation will eventually "cause the greatest loss of wealth for African Americans in modern U.S. history."
The Boston-based research group United for a Fair Economy (UFE) estimates that American Blacks will experience wealth losses of between $77 billion and $122 billion as tens of thousands lose their homes as the sub-prime loan crisis plays itself out.
Sub-prime loans were those given to people with poor credit ratings in order to enable them to purchase homes. However, critics charge that Blacks were disproportionately steered toward such loans even when they had good or excellent credit ratings. Payments on such loans frequently double or even triple after a few years.
"It is important to realize how much ground middle and working class Americans have lost in the sub-prime crisis. Our estimates indicate it will cause the greatest loss of wealth for African Americans in modern U.S. history," UFE program leader Amaad Rivera said in releasing the report.
The report entitled "Foreclosed: The State of the Dream" is available on line here.
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