The Federal Reserve Bank of New York today released A Look at Upstate New York’s Subprime Mortgages in Foreclosure , the latest article in the Bank's series, Community Affairs Forum: Facts & Trends.
An examination of upstate New York's owner-occupied subprime mortgages reveals that the region has fewer subprime mortgages per 1,000 housing units than New York State as a whole or the United States. Additionally, subprime loans analyzed in the study were performing better than those in the state and the country. The share of subprime mortgages in foreclosure in upstate New York is 7 percent—considerably less than 14 percent for New York State and 12 percent for the nation.
The analysis, based on a snapshot of a subset of upstate home mortgages, also showed relatively high concentrations of subprime mortgages in foreclosure in counties with large urban centers. Six of the 48 counties account for half of upstate New York's subprime mortgages in foreclosure—approximately 25 percent in Monroe and Erie counties alone. Further examination of these loans uncovered striking similarities in underwriting characteristics across the region.
Developed by the Bank’s Community Affairs function, the Facts & Trends series provides 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.