The Federal Reserve Bank of New York today released A Look at New Jersey’s Subprime Mortgages in Foreclosure , the first article in the new series, Community Affairs Forum: Facts & Trends. The first set of articles in the Facts & Trends series will have a shared focus on subprime mortgage conditions around the region. These articles will augment the dynamic maps of nonprime mortgage conditions currently available on the New York Fed’s website.
"A Look at New Jersey’s Subprime Mortgages in Foreclosure" traces patterns of regional variation in, and neighborhood concentration of, owner-occupied subprime mortgages in foreclosure. New Jersey ranks fifth amongst states in subprime mortgages in foreclosure per 1000 housing units and exceeds the U.S. ratio. The highest concentration—a combined 25 percent of the state’s total number—is in Essex and Union counties. Within these two counties, zip code-level data reveal that about 75 percent of foreclosure activity occurs in neighborhoods that are grouped together and tend to have relatively lower household incomes.
Developed by the Bank’s Community Affairs function, the Facts &Trends series will provide analytical summaries intended to present key facts on topical issues to assist governments, community advocates and others to better understand, monitor and address specific economic concerns within the Federal Reserve's Second District.