California Attorney General Jerry Brown opened an investigation of the subprime mortgage industry, which made the state the largest U.S. market for high-risk home loans.
Half of the 20 biggest U.S. subprime lenders, including No. 2 New Century Financial Corp., which is trying to avoid bankruptcy, are located in California, according to the newsletter Inside Mortgage Finance. The industry is under scrutiny by regulators after delinquencies on subprime mortgages rose to 13.3 percent last quarter, the highest since September 2002.
About 13 percent of the U.S.'s subprime loans are in California, according to the Washington-based Mortgage Bankers Association.
The following graph is from the Wall Street Journal: Where Subprime Delinquencies Are Getting Worse.
Among other things, it has a lovely table on this madness.
Pass the Maui-wowie, baby. Cali needs a few hits!
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