Working Paper

Homeownership at high cost : foreclosure risk and high cost loans in California

Abstract: The relatively low rate of mortgage default and foreclosure in California in recent years obscures the fact that many Californians have high-cost home loans that they cannot afford. High cost loans are particularly common in low-income and minority communities, suggesting that those who can least afford it are paying the most for credit. In communities where high cost lending is more prevalent, so is the prevalence of households that are defaulting on their mortgage. Homeownership may be coming at too high a price for these households and communities.

Keywords: Foreclosure - California; Mortgage loans;

Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: Community Development Working Paper

Publication Date: 2006

Number: 2006-01