Maxine Waters

Report: Is California a Ticking Subprime Time Bomb? 

A new report suggests that subprime, or higher-cost home lending, is increasing at a rapid rate in California. Sponsored by the California Reinvestment Coalition, a consumer advocacy group, the report analyzes federal Home Mortgage Disclosure Act (HDMA) data and shows that the number of higher cost home loans sold in the state doubled during 2005, making California the largest market for subprime lending in the country. The report primarily looks at the disparities in higher-cost lending to African Americans and Latinos, and in minority neighborhoods and Low and Moderate Income (LMI) neighborhoods in 14 cities across the state.