Why Iowa’s numbers rank so high

Why Iowas numbers rank so high.
SUBPRIME LOANS: Iowa borrowers have relied heavily on subprime loans, which are aimed at consumers with poor credit. In Iowa, 9.20percent of subprime loans were in foreclosure, according to the most recent data from the Mortgage Bankers Association. Nationally, the percentage is 5.10 percent. The statistics worsen with subprime loans that have adjustable mortgage interest rates. Of those loans, 12.08percent were in foreclosure at the end of first quarter, nearly double the national rate of 6.46 percent. FEWER ?EXIT RAMPS?: Kathleen Keest, senior policy counsel for the Center for Responsible Lending, said she believes the foreclosure crunch hit earlier in Iowa and other Midwestern states than other parts of the country. Rapid appreciation in home values helped homeowners on the East and West coasts, for example, refinance troubled loans as adjustable mortgage rates reset.