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"... less than 10% of subprime loans...were to first-time homebuyers..."


"First, according to a 2008 study by the Federal Research Board, between 85 to 90 percent of problem subprime loans were not originated through CRA. Second, according to the Center for Responsible Lending, less than 10 percent of all subprime loans made between 1998 and 2006 were to first-time homebuyers. During that period, the majority of loans in the subprime market were for refinancing. As a result, improving homeownership was not the principal aim of subprime lending."

Source: James H. Carr. "Taking the Bull by the Horns," Shelterforce: The journal of affordable housing and community building. Winter 2008, 39.


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