Document Type

Research Report

Publication Date

2-2008

Abstract

This is the fourteenth in the annual series of Changing Patterns reports prepared for the Massachusetts Community & Banking Council (MCBC) by the present author. This year’s report, for the first time, includes the analysis of subprime lending that was previously presented in a separate annual series of Borrowing Trouble reports. The report presents information for the city of Boston, for Greater Boston, and for Massachusetts, as well as for each of the state’s fourteen counties and each of its thirty-three largest cities and towns.

The analysis is based on federal Home Mortgage Disclosure Act (HMDA) data for 2006, as well as on data on population and income from the 2000 census and annual data on metropolitan area income levels from the Department of Housing and Urban Development. The report is restricted to first-lien loans for owneroccupied homes and gives particular attention to higher-cost loans, identified in HMDA data as having annual percentage rates (APRs) at least three percentage points higher than the current interest rate on long-term U.S. Treasury bonds; these loans are referred to in this report as high-APR loans, or HALs.

Readers interested in additional detail will want to investigate the forty-eight pages of tables that follow the body of the report; these may be particularly useful for those interested in lending patterns in a particular community or region of the state.

Comments

Prepared by the Gaston Institute at the University of Massachusetts Boston for the Massachusetts Community and Banking Council (MCBC).

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