6  Lower-income and minority communities were targeted for higher-priced subprime mortgages and, as a result, have experienced high rates of foreclosures. An analysis of 2005 lending indicates that 40 percent of lending in minority communities (those where more than half of the population was minority) were higher-cost subprime loans, compared with 23 percent of loans made elsewhere.
The decline in credit demand in the private sector is coming to a halt.