The data analysis shows that Long Island’s Nassau and Suffolk counties contain some of the highest ratios of distressed nonprime mortgages in the nation. Moreover, half of these distressed mortgages are on properties located in just 22 of the region’s roughly 200 Zip codes. Posing further risk for these neighborhoods are negative borrower equity loans—a condition that occurs when a house is worth less than what is owed on the loan. National studies suggest that borrowers with negative equity have a higher risk of defaulting on their mortgages.
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.