Primary Research Project Provides New Perspectives on Denver Foreclosures
A new 81-page report, titled
Understanding Mortgage Foreclosures in Denver, is helping city managers gain a greater understanding of the underlying causes for the rapid rise in residential mortgage foreclosure filings in Denver. The Denver Office of Economic Development (OED) has published the
in-depth study of residential foreclosures impacting the City and County of Denver.
“When the City’s Foreclosure Task Force convened in 2007, it became clear that we needed a much more comprehensive, 360-degree understanding of Denver’s foreclosure landscape,” said OED
Executive Director Andre Pettigrew. “The purpose of this study was to isolate, analyze and understand the causes and characteristics of foreclosure. This deep analysis strengthens our position to develop meaningful public policies and approaches to tackle this complex problem.”
For the study, the Denver Public Trustee’s Office provided OED with access to its eForeclosure database of Denver foreclosure filings for 2001–2007. This information was matched with Home Mortgage Disclosure Act Data, which provides details on mortgages originated or purchased by mortgage lending institutions. The report also includes GIS analysis to demonstrate the spatial patterns of Denver foreclosure filings.
“This is one of the leading studies of its kind among U.S. cities,” said OED Senior Policy Analyst Abdul Sesay. “By successfully matching HMDA data with our Public Trustee data, we have shed significant light on the specific characteristics of borrowers, lenders and loan products involved in foreclosure.”
The study provides solid substantiation for the relationships among foreclosure filings, unique filings and actual foreclosures. Specific findings include:
- On average, 6.6 percent of loans originated annually in Denver become delinquent and enter the foreclosure process within five years.
- The age of loans going into foreclosure has gradually declined from 7.4 years in 1994 to 2.5 years in 2005.
- The foreclosure rate for Denver as a whole increased from 0.8 percent in 2000 to 5.9 percent in 2007.
The report’s data is complemented by a series of focus group stories that highlight families impacted by foreclosure. The report concludes with a series of policy considerations.
Copies of Understanding Mortgage Foreclosures in Denver are available online at
www.milehigh.com. For more information regarding the study call 720-913-1999.
The Denver Office of Economic Development (OED) works to create a local environment that stimulates balanced economic growth through job creation, business assistance, housing options and neighborhood redevelopment.