OAKLAND, Calif. (KCBS) - A new report suggests many subprime lenders who have gone out of businesses were targeting minority neighborhoods.
Mayor Ron Dellums believes Oakland was hit especially hard by sellers pushing deceptive loans.
Researchers say high risk loans offered by out of business companies comprised approximately 20% of all loans in minority communities. "This subprime mortgage problem is affecting thousands of people in communities all over the country," said Dellums. He wants to meet with the leaders of local banks later this month, to discuss the mortgage crisis. "If the mayor called, I think they'll come and everybody understands the nature of this crisis."
Meanwhile, Dellums is promoting a $1 million partnership between the city of Oakland and One California Bank, that helps at-risk borrowers to avoid soaring interest rates. "Suppose there were a federal program, with some federal dollars, where Oakland could receive $20 million, or $30 million, look how many families we could help," he suggested.
According to Dellums, many of Oakland's foreclosures have been concentrated in three tracts in the eastern part of the city.
KCBS' Chris Filippi reports
