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.
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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 |
|
| 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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