Hispanics Only Minority Group to See Homeownership Decline Since 2009

June 4, 2010 No Comments »

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Hispanic homeowners were the only racial/ethnic minority group to see a decline in total homeownership since 2009, according to housing counselor NeighborWorks America.

The group’s rate of homeownership fell to eight percent this year, down three percent from 2009.

“During the housing boom, many Hispanic homeowners were steered into high-cost loans by unscrupulous lenders in order to gain a foothold into the housing market, said Ken Wade, CEO of NeighborWorks America, in a press release.

“Now that the boom has gone bust, the foreclosure crisis is disproportionately affecting Hispanic homeowners.”

NeighborWorks, which runs the National Foreclosure Mitigation Counseling (NFMC) program, said more than 870,000 homeowners received foreclosure prevention counseling as a result of NFMC funding through January 31, 2010.

Interestingly, 21 percent were Hispanic homeowners, more than twice their total representation as homeowners.

Overall, 52 percent of NFMC Program clients were minority homeowners, representing more than twice the overall percentage of minority homeowners.

African American homeownership accounts for nine percent of the nation’s total, while Asian/Pacific Islanders account for four percent.

For the first time, NFMC clients who sought foreclosure counseling were more likely to hold fixed-rate mortgages than adjustable-rate mortgages.

But only 54 percent of Hispanics seeking assistance held fixed-rate loans, compared to 61 percent of African Americans and 67 percent of white borrowers.

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