Effects non financial crisis in the housing and United States
The majority of Hispanic families have stable income from various sources, sometimes with cash; in many cases this fact makes the credit history is very limited and even null and void.
The credit history is an important component used by banks to determine the risk and this in turn is a decisive factor to assign the percentage of interest to be charged to grant a loan. At greater risk, the greater interest.
During the boom in the market of the houses many loans were granted without requiring proof of income, of course with interests very high and generally with interests adjustable.
According to statements of the secretary of housing in the US, Shaun Donovan, 40 percent of mortgage loans that were Hispanics in 2006, were appropriations of high-risk, which include interest rates adjustable. Also explained that these types of loans were promoted especially among Hispanics and African Americans.
Particular Studies indicate that the granting of loans of high-risk generated in the Hispanic community lost close to $82,000 million dollars, while the Center for Loans Responsible estimated that 1.3 million Hispanic families lost their homes between 2009 and 2010.most of the research studied the economic impact of the housing crisis, however are very few studies have analyzed the social impact in our communities.
Analysis emerging suggests that the embargoes and foreclosure generated in addition to financial losses a blow emotional. The National Council of the Race recently published the results of the surveys conducted among families who lost their homes.
Major findings revealed by the surveys as social consequences of embargoes are mortgage depression, anxiety, tension, guilt and resentments within families affected. Delay, decrease or even total elimination of curricula is other consequences not economic that leave the embargoes and foreclosure.
The authors of this analysis highlights that Hispanic families still keeping alive the American dream of homeownership and that most of the families think they may recover from this crisis.
Among other recommendations to alleviate the current crisis, the authors suggest that the modifications of loans for housing should be even to the people who do not work. As a preventive measure suggest the implementation of stricter standards for granting loans.
Finally, the study suggests that Hispanic families are being pushed to the same poverty of which have been fleeing already that the aid programs are not at the level of the magnitude of the problem that the crisis in the housing has generated in the Hispanics.