Wednesday, March 4, 2009

Effects Of Non-Financial Crisis Housing In The Hispanic Community of the United States.

Most Hispanic families have stable income from various sources, sometimes with cash, in many cases this makes the credit history is very limited or even nil.

Credit history is an important component used by banks to assess risk and this in turn is a decisive factor to allocate the percentage of interest charged to lend. A higher risk, higher interest.

At the height of the housing market many loans were granted without requiring proof of income, of course with very high interest rates and adjustable interest generally.

According to statements by the secretary of housing in the U.S., Sahun Donovan, 40% of mortgage loans obtained in 2006 Hispanics were subprime loans, which include adjustable interest rates. Also explained that these loans were promoted especially among Hispanics and African Americans.

Particular studies indicate that the granting of subprime loans generated in the Hispanic community lost close to $ 82,000 million, while the Center for Responsible Lending estimates that 1.3 million Hispanic families lose their homes between 2009 and 2010.La Most of the research study the economic impact of the housing crisis, however, very few studies examining the social impact in our communities.

Emerging analysis suggests that foreclosures and foreclosures create a financial loss as well as emotional blow. The National Council of La Raza recently released the results of surveys of families who lost their homes.

The most important findings revealed by the surveys and social consequences of foreclosure are depression, anxiety, stress, guilt and resentment within the families. Delay, reduction or even total elimination of curricula are other economic consequences left by foreclosures and foreclosures.

The authors of this analysis highlight that Hispanic families are keeping alive the American dream of home ownership and that most families think they can recover from this crisis.

Among other recommendations to alleviate the current crisis, the authors suggest that the housing loan modifications should be made even people who are unemployed. As a precaution, suggest the application of stricter standards for loans.

Finally, the study suggests that Hispanic families are being pushed to the very poverty from which they are fleeing because aid programs are not up to the magnitude of the problem that the housing crisis has resulted in Hispanics.

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