February 1, 2008

Subprime loans affect families and communities in every corner of Oregon

With SB 1090, the Oregon legislature will address mortgage lending reform during the 2008 special session. As legislators take up the discussion, they should recognize that subprime mortgage lending and the predatory lending practices that sometimes accompany it affect Oregonians in every legislative district of the state.

Among legislative districts with the highest share of subprime mortgage originations in 2006 were those of several legislative leaders, including Senate President Peter Courtney (36.9 percent), Senate Republican Leader Ted Ferrioli (31.4 percent), and House Speaker Jeff Merkley (35.7 percent). Even in the district with the lowest share of subprime loans -- House District 16, Rep. Sara Gelser -- one in eight residents who took out a home loan in 2006 (13.0 percent) received a subprime loan.

Subprime loans themselves are not the problem; lending practices that sometimes accompany them are. SB 1090 protects Oregonians from predatory mortgage lending practices by requiring basic underwriting standards for home loans and holding mortgage brokers accountable for acting in borrowers' best interest.

Although Oregon as a whole has so far been buffered from the worst of the mortgage crisis by a relatively strong housing market, prices are now slowing down or falling across much of the state. Oregonians should not be complacent about the need for mortgage lending reform.

Subprime share of loan originations in 2006, by Oregon legislative district

Senate district	Senator	# Subprime loans	# Loan originations	Subprime share	Share rank
1	Kruse	929	3,755	24.7%	15
2	Atkinson	1,268	5,187	24.4%	17
3	Bates	1,051	5,165	20.3%	27
4	Prozanski	954	4,272	22.3%	24
5	Verger	1,129	4,665	24.2%	19
6	Morrisette	1,422	5,076	28.0%	8
7	Walker	1,371	5,467	25.1%	14
8	Morse	944	4,193	22.5%	23
9	Girod	1,541	5,145	30.0%	6
10	Winters	1,591	6,006	26.5%	11
11	Courtney	1,718	4,651	36.9%	1
12	George, G.	1,479	5,391	27.4%	9
13	George, L.	1,857	7,614	24.4%	18
14	Haas	1,564	6,700	23.3%	21
15	Starr	1,933	7,141	27.1%	10
16	Johnson	1,631	6,209	26.3%	12
17	Avakian	1,132	7,113	15.9%	30
18	Burdick	1,149	6,698	17.2%	29
19	Devlin	1,144	6,400	17.9%	28
20	Schrader	1,624	6,285	25.8%	13
21	Brown	1,272	5,866	21.7%	26
22	Carter	1,868	7,553	24.7%	16
23	Gordly	1,445	6,242	23.1%	22
24	Monroe	2,414	7,025	34.4%	2
25	Monnes Anderson	2,039	6,482	31.5%	4
26	Metsger	1,447	6,080	23.8%	20
27	Westlund	2,763	12,406	22.3%	25
28	Whitsett	1,602	5,575	28.7%	7
29	Nelson	750	2,358	31.8%	3
30	Ferrioli	1,083	3,452	31.4%	5
Senate district average		1,470	5,872	25.5%

House district	Representative	# Subprime loans	# Loan originations	Subprime share	Share rank
1	Krieger	368	1,681	21.9%	47
2	Morgan	561	2,074	27.0%	26
3	Maurer	554	2,313	24.0%	35
4	Richardson	714	2,874	24.8%	32
5	Buckley	361	2,231	16.2%	57
6	Esquivel	690	2,934	23.5%	40
7	Hanna	559	2,123	26.3%	28
8	Holvey	395	2,149	18.4%	54
9	Roblan	482	1,938	24.9%	31
10	Cowan	647	2,727	23.7%	37
11	Barnhart	557	2,375	23.5%	41
12	Beyer	865	2,701	32.0%	8
13	Nathanson	450	2,181	20.6%	48
14	Edwards, C.	921	3,286	28.0%	18
15	Olson	738	2,610	28.3%	16
16	Gelser	206	1,583	13.0%	60
17	(vacant)	764	2,389	32.0%	9
18	Gilliam	777	2,756	28.2%	17
19	Cameron	834	3,016	27.7%	21
20	Berger	757	2,990	25.3%	29
21	Clem	914	2,513	36.4%	2
22	Komp	804	2,138	37.6%	1
23	Boquist	653	2,433	26.8%	27
24	Nelson	826	2,958	27.9%	19
25	Thatcher	896	3,277	27.3%	23
26	Krummel	961	4,337	22.2%	45
27	Read	582	3,104	18.8%	53
28	Barker	982	3,596	27.3%	24
29	Riley	1,057	3,331	31.7%	10
30	Edwards, D.	876	3,810	23.0%	42
31	Witt	947	3,161	30.0%	11
32	Boone	684	3,048	22.4%	44
33	Greenlick	526	3,945	13.3%	59
34	Bonamici	606	3,168	19.1%	52
35	Galizio	713	3,629	19.6%	49
36	Nolan	436	3,069	14.2%	58
37	Bruun	646	3,340	19.3%	51
38	Macpherson	498	3,060	16.3%	56
39	Scott	851	3,511	24.2%	34
40	Hunt	773	2,774	27.9%	20
41	Tomei	863	3,454	25.0%	30
42	Rosenbaum	409	2,412	17.0%	55
43	Shields	777	3,528	22.0%	46
44	Kotek	1,091	4,025	27.1%	25
45	Dingfelder	727	3,199	22.7%	43
46	Cannon	718	3,043	23.6%	39
47	Merkley	1,064	2,977	35.7%	3
48	Schaufler	1,350	4,048	33.3%	7
49	Minnis	1,081	3,181	34.0%	5
50	Lim	958	3,301	29.0%	15
51	Flores	691	2,890	23.9%	36
52	Smith, P.	756	3,190	23.7%	38
53	Whisnant	1,622	6,557	24.7%	33
54	Burley	1,141	5,849	19.5%	50
55	Gilman	911	3,070	29.7%	14
56	Garrard	691	2,505	27.6%	22
57	Smith, G.	356	1,193	29.8%	13
58	Jenson	394	1,165	33.8%	6
59	Huffman	703	2,353	29.9%	12
60	Bentz	380	1,099	34.6%	4
House district average		735	2,936	25.4%
Note: Analysis includes only conventional, single-family home purchase and refinance loans. A "subprime" loan here is one with an APR 3 points or more above U.S. Treasury securities of the same maturity or, for second mortgage loans, an APR 5 points or more above Treasury securities of the same maturity.
Source: OCPP analysis of Home Mortgage Disclosure Act data.

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Subprime loans affect families and communities in every corner of Oregon

Subprime share of loan originations in 2006, by Oregon legislative district

Senate district

Senator

# Subprime loans

# Loan originations

Subprime share

Share rank

House district

Representative

# Subprime loans

# Loan originations

Subprime share

Share rank

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