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Subprime Mess Impacts Women
Dana Point, CA
Monday, April 30, 2007
Over 30 subprime lenders went under in first quarter 2007. This is especially bad news for women homeowners because of the high levels of subprime lending among women.
Although women are the fastest growing group of new home buyers, a Consumer Federation of America study revealed that about a third of women have mortgages with interest rates over 7.66 percent, well above the 5.87 percent prime. In addition women with higher incomes were 46.4 percent more likely to have subprime loans compared with men of the same income level. Clearly women have been impacted by abusive practices.
The subprime crisis itself may reduce overall consumer confidence in the housing sector, but a more unfortunate effect may be the impact on the growth of the women-buyer market. This is due both to shaken confidence with lenders as well as new restrictions and inability of lenders to source and perform flexible loans for low income, minority, and first-time home buyers.
The personal consequences when women are steered into unnecessarily expensive loan products can be devastating to their ability to build wealth through home equity. Popular strong-arm tactics include:
• "teaser" rates that start low and go high,
• high initial rates, disguised penalties and fees,
• "bait and switch" on loans with changed terms at closing,
• delaying the close so that the better offer expires and must be "replaced"
• unwarranted "flipping" through unnecessary refinancing,
• "steering" into inappropriate loans when more affordable ones are available.
According to the National Association of Realtors, the percentage of single-women buyers has increased from 14 to 22 percent over the last ten years. Women need to be on their guard against lending abuse so that they can make real estate a strong part of their investment portfolio.
About The Wealth Gap: Bridging the Eight Gaps to Women's Wealth
Bestselling Author Rachel Bondi is an entrepreneur and former director at FORTUNE 100 companies such as Microsoft and AT&T. The co-founder of CitiPacific Mortgage in Irvine, CA has appeared nationwide on radio and in print, been voted one of the Top 10 Women of Power by OC Metro magazine, and 2006 Top CFO by the National Investor Relations Institute of Orange County. Featured in TWINS, BROKER, and the OC Register, Bondi has been interviewed by diverse media outlets including MSNBC, TIME Magazine, Tokyo Times, The Wall Street Journal, and has been a featured guest for The Mix on CoxTV and radio nationwide.
Although women are the fastest growing group of new home buyers, a Consumer Federation of America study revealed that about a third of women have mortgages with interest rates over 7.66 percent, well above the 5.87 percent prime. In addition women with higher incomes were 46.4 percent more likely to have subprime loans compared with men of the same income level. Clearly women have been impacted by abusive practices.
The subprime crisis itself may reduce overall consumer confidence in the housing sector, but a more unfortunate effect may be the impact on the growth of the women-buyer market. This is due both to shaken confidence with lenders as well as new restrictions and inability of lenders to source and perform flexible loans for low income, minority, and first-time home buyers.
The personal consequences when women are steered into unnecessarily expensive loan products can be devastating to their ability to build wealth through home equity. Popular strong-arm tactics include:
• "teaser" rates that start low and go high,
• high initial rates, disguised penalties and fees,
• "bait and switch" on loans with changed terms at closing,
• delaying the close so that the better offer expires and must be "replaced"
• unwarranted "flipping" through unnecessary refinancing,
• "steering" into inappropriate loans when more affordable ones are available.
According to the National Association of Realtors, the percentage of single-women buyers has increased from 14 to 22 percent over the last ten years. Women need to be on their guard against lending abuse so that they can make real estate a strong part of their investment portfolio.
About The Wealth Gap: Bridging the Eight Gaps to Women's Wealth
Bestselling Author Rachel Bondi is an entrepreneur and former director at FORTUNE 100 companies such as Microsoft and AT&T. The co-founder of CitiPacific Mortgage in Irvine, CA has appeared nationwide on radio and in print, been voted one of the Top 10 Women of Power by OC Metro magazine, and 2006 Top CFO by the National Investor Relations Institute of Orange County. Featured in TWINS, BROKER, and the OC Register, Bondi has been interviewed by diverse media outlets including MSNBC, TIME Magazine, Tokyo Times, The Wall Street Journal, and has been a featured guest for The Mix on CoxTV and radio nationwide.
Rachel Bondi
Founder and CEO
Earning Power!
Dana Point, CA
949-394-1811
First Url: CitiPacific Loans
Second Url: Earning Power!
