Foreclosures hit Latinos hard

A new study confirms what was becoming obvious: The real estate meltdown is having a disproportionate impact according to race and ethnicity. An estimated 17 percent of of Latino homeowners and 11 percent of African-American homeowners have lost their home to foreclosure or are at imminent risk, according to the Center for Responsible Lending (h/t OC Register). The report forecasts that between 2009 and 2012, those living near a foreclosed property in African American and Latino communities will have seen their home values drop by more than $350 billion. From the report:

Not only were borrowers of color more likely to receive subprime loans than white borrowers, but within the subprime market, borrowers of color were more likely to receive the most expensive loans and were more likely to receive subprime terms associated with increased default risk, such as prepayment penalties.

Much of the damage occurred between 2005 and 2008 when mortgage lending went completely out of control.