Subprime Subprime loans affect families and communities in every corner of Oregon, by legislative district

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Subprime Subprime loans affect families and communities in every corner of Oregon, by legislative district

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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.

Subprime Subprime loans affect families and communities in every corner of Oregon, by legislative district

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.

Download a PDF version of this table.

 

More about: housing

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Written by staff at the Oregon Center for Public Policy.

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