South Carolina Mortgage. First South Financial Corp. with over 25 years experience combined!. Please give us the opportunity to serve you. A study released Wednesday indicates that black and hispanic homeowners are more likely to receive refinancing loans aimed at borrowers with low credit ratings.

The study, conducted by the Consumer Federation of America, surveyed nearly five million refinanced mortgages made by 30 lenders nationwide. The study found that about half of black mortgage seekers and one-third of Hispanics received subprime mortgages with higher interest rates. Only one-quarter of white borrowers received subprime mortgages.

Subprime loans have higher interest rates in order to compensate the lender for the increased risk that borrowers with lower credit ratings bring to the table. Interest rates on subprime, adjustable-rate fefinanced mortgages increase sharply as the market sees increases. This often makes it harder for the borrower to repay the loan.

"Some of the differences in lending we saw are undoubtedly due to risk-based pricing, but the variation is too great to be explained by risk factors along," said Patrick Woodhall, senior researcher with the Consumer Federation of America.

"It's important, when you look at a particular market, to compare it to similar areas and not drastically different ones," he said. "Comparing Jackson, Mississippi, to Los Angeles doesn't tell you much because it's not even comparing apples to oranges -- it's more like apples and grapefruits."

According to American Banker Online, the top issuers of subprime mortgages in the first half of 2005 were New Century Financial Corp., Countrywide Financial Corp and Washington Mutual Inc.

A Federal study is currently looking into lenders' practices based on 2004 loan data, with April through August 2005 data already collected. The information is also being looked at by the Federal Reserve for a study that will come out this month.

Witness what is happening with Countrywide Financial Corp. which is the largest U.S. home mortgage lender. At the end of 2006, the number of people at least 30 days late is 2.9% of their prime home-equity loans. The number for 2005 was 1.6% and 0.8% for 2004. It is our opinion at StocksAtBottom.com based on stock market information that we use, and stock investing that we do that the subprime industry players RIGHT NOW have no idea where they stand in reference to their loans. The industry is hanging on by their thumbnails hoping that it gets better.

GMAC is in the same position as the subprime industry, and that is why in our opinion they have asked the SEC for a delayed filing authorization. They are literally trying to figure out where they stand. Assuming the situation is worse than what they told the private equity players who purchased a majority of GMAC last year, GM will be responsible depending upon the covenants in the agreement to ante up additional cash to the buyers.

This is just one more illustration of inept management at General Motors. They are a management team that lets things happen to them. They are in a reactive mode as opposed to being out in front of the problems trying to anticipate, and fix them before they get blown out of proportion. At our firm we have been observers of the American automotive adventure for several decades. We know there are Lee Iacocca type individuals out there that can turn around GM, Ford, and Chrysler. These guys just aren't in the automobile industry anymore.