Brought to you by
KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate
Home for sale

Predatory lending or overreaching? Gen X's role in downturn

During the housing crisis, Generation X made up the largest percentage of households in foreclosure - particularly the well-educated and affluent members of this generation, according to a new study by the Federal Reserve Bank of St. Louis, "The Foreclosure Crisis in 2008: Predatory Lending or Household Overreaching?"

Generation Xers who had an average household income of $59,500 and 14.8 years of education were found to have the highest rate of foreclosures, with more than 1 in 10 in foreclosure, according to the St. Louis Fed's research.

The study also found these trends among those with the highest foreclosure rates during the housing crisis:

  • Homeowners in foreclosure tended to pay 25 to 33 percent more for their homes and they tended to earn about 10 percent less than homeowners not in foreclosure.
  • The median mortgage in foreclosure had a loan-to-value of about 96 percent, whereas the median mortgage not in foreclosure had a loan-to-value ratio of about 65 percent.
Top Stories

  • Spy Gadgets
    A big collection of equipment that would make James Bond envious is on display in Seattle
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Mortgage Calculator
Enter Your Details & Click the Calculate Button
Loan Amount $
Annual Interest Rate %
Term of Loan Years
Number of Payments
Monthly Payment $
Brought to you by

This is not a commitment to lend. Terms subject to change without notice. Applicant must qualify to receive credits. A division of Pinnacle Capital Mortgage Corp. WA CL 81395, Equal Housing Lender, MLO 70765.
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.