(Washington, DC) — Foreclosure rates during a one-year period ending in February 2008 in the Washington, DC, area were 15,613 homes, giving the region one of the fastest-growing foreclosure rates in the nation, according to published reports. In the District of Columbia, there were 366 home foreclosures as of May 2008, while there were only 281 foreclosures for all of 2007.
One explanation for the high rates of home foreclosures is subprime lending, which usually permits mortgagees to pay lower monthly payments in early years based on a lower interest rate. In most cases, borrowers using these loans had low credit scores and had a greater risk for default. The DC Department of Insurance, Securities and Banking (DISB) will release the District’s first comprehensive subprime lending study, which provides a clearer picture of the District of Columbia’s population that is particularly susceptible to foreclosure.
What: DISB Releases Subprime Mortgage Lending in the District of Columbia to the public. The 168-page study will give insight into the number of subprime mortgage loans that have been sold in the District. It is intended to help the District better understand the impact of subprime lending on its residents and to suggest changes that might be needed to help protect residents. It contains more than 100 findings and recommendations that provide a road map for possible courses of action by District officials and agencies, lenders and consumers.
Where: Office of the DC Department of Insurance, Securities and Banking
810 First Street, NE
Suite 205, second floor
Washington, DC 20002
(202) 727-8000
When: Monday, June 30, 2008
9 am to 10 am
Who: Officials from:
- DC Department of Insurance, Securities and Banking
- Office of the Deputy Mayor for Planning and Economic Development (invited)
- Council of the District of Columbia (invited)
- Authors of the Study:
- Center for Responsible Lending
- Capital Area Asset Builders
- The Urban Institute
- National Community Reinvestment Coalition
- The Reinvestment Fund