Subprime Foreclosure Woes
In a report out of a group at the University of North Carolina at Chapel Hill, it is revealed the boom in subprime loans is resulting in more foreclosure. Citing "abusive loans" in particular the Center for Community Capitalism noted "Subprime loan originations grew more than nine-fold, from $35 billion to $332 billion between 1994 and 2003". How big could the problem be? "For example, 20.7 percent of all first-lien subprime refinance loans originated in 1999 had entered foreclosure by December 2003".