Article: Foreclosure rise blamed on subprime mortgages

Foreclosure rise blamed on subprime mortgages

By MICHELE DERUS mderus@journalsentinel.com, Journal Sentinel

Sunday, December 1, 2002

Subprime mortgages played a pivotal role in Milwaukee County's triple-digit percentage increase in housing foreclosures since the mid-1990s, local housing experts say.

Subprime lenders' growing presence coincided with soaring foreclosure rates here, said industry researcher Kim Terry, housing and financial management educator at the University of Wisconsin Extension in Milwaukee. Her research of 2000 filings showed that 54% of foreclosure actions came from lenders making only 8% of home loans.

Subprime loans charge high rates to borrowers who present a high ...

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