As Subprime Rates Rise, Many May Lose Homes
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
More than 90,000 New York families could lose their homes within two years as the rates of their subprime mortgage loans rise, an analysis by Senator Schumer has found.
“The subprime market is the Wild West of mortgage loans, and it’s time we bring a sheriff into town,” Mr. Schumer said yesterday.
Subprime mortgages offer low interest rates that rise quickly to borrowers who might not ordinarily qualify for loans. America’s largest mortgage lender, Countrywide Financial Corp., told Bloomberg News that subprime home loan delinquencies could climb to a record 10%.
Mr. Schumer said yesterday he would introduce legislation to regulate “rogue” mortgage lenders.
