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May 14, 2008

Brooklyn neighborhoods top subprime foreclosures in nation

Saturday, January 26th 2008, 4:00 AM

A Brooklyn community had the highest subprime foreclosure rate in the state in October, according to Federal Reserve Bank of New York data.

One in four homeowners with subprime mortgages in the 11233 zip code, which spans Brooklyn's Bedford-Stuyvesant and Crown Heights neighborhoods, lost their homes, the Fed said.

The community had a foreclosure rate of almost four times the national subprime figure of 6.89%, which was the highest since March 2003.

Blacks and Latinos are 30% more likely to be charged a higher rate for a home loan than whites with similar credit histories, according to a 2006 study of 50,000 mortgages.

Bedford-Stuyvesant and Crown Heights had 194 foreclosures out of 770 subprime borrowers, Fed data show.



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