Subprime crisis, hunger linked

WASHINGTON -- The poorest counties in the United States are among the hardest hit by the subprime mortgage crisis, according to a study released Feb. 27 by the Christian anti-hunger advocacy group Bread for the World.

The report, titled "Home Ownership, Subprime Loans and Poverty," found that in eight of the country's 15 poorest counties, which have poverty rates exceeding 40 percent, the percentage of homeowners holding subprime mortgages is even higher--up to 60 percent.

Bread for the World contends that the subprime mortgage crisis and hunger are interrelated, since victims of high-risk mortgage lending often limit their food purchases because they are saddled with increasing payments.

"Since you can't cut back on mortgage payments or renegotiate the price of gas, the only place where you can save money is food," said study author Todd Post.

"Some of the poorest people are going to be forced into deeper poverty because of widespread subprime lending," said the Rev. David Beckmann, president of Bread for the World.

--Religion News Service

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