Female Borrowers in the Washington Mortgage Market Presented by: Megan Gallagher The Urban Institute

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Female Borrowers in the Washington Mortgage
MarketPresented byMegan GallagherThe Urban
InstituteforNeighborhoodInfo DCMay 11,
2007Stepping Stones Research Briefing
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Background

• Washington housing market cools
• But prices remain high
• Borrowers with subprime loans at risk of
  foreclosure and equity stripping as interest
  rates rise
  
• Information about mortgage trends among women is
  essential for advocates and policymakers

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Key Findings

• Female borrowers comprise growing share of
  regions borrowers
  
• Taking loans form subprime lenders at higher
  rates than they were in the past
  
• Patterns of borrowing do not differ greatly
  between female and male borrowers
  
• Highlights need to education buyers and regulate
  lenders

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This analysis

• Home Mortgage Disclosure Act (HMDA) Data
• - 1997, 2001, 2005
• Female borrowers are defined as female applicants
  with no coapplicant
  
• DC and close-in suburbs
• Montgomery County, MD - Alexandria city,
  VA
  
• Prince George's County, MD - Fairfax city,
  VA
  
• Arlington County, VA - Falls
  Church city, VA
  
• Fairfax County, VA

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Share of loans to female borrowers has increased
since 1997
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The regions female borrowers Income
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The regions female borrowersRace and ethnicity
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The regions female borrowersLocation of home
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Females comprise growing share of loans and loans
from subprime lenders
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African American and Hispanic borrowers have
higher rates of loans from subprime lenders
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Summary and Implications

• Female borrowers comprise a greater share of all
  borrowers, but many have subprime loans that can
  damage their financial health
  
• It is critical that they receive financial
  counseling to avoid the pitfalls of the subprime
  market
  
• Must implement and enforce regulations that
  prohibit predatory practices

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For more information, see

• http//www.NeighborhoodInfoDC.org/