Map of Nonprime Mortgage Conditions in the United States
April 17th, 2008 | Investing, ProsperStumbled across this little gem from the Fed today. The map shows breakdown of mortgages by state, city and zip code. You can use it to check out how your area is doing.
The thought that came across my mind was to avoid lending to areas with the most problems. I compared the mortgage map to the prosper loan map. There is some correlation but as much as I thought, maybe someone out there will find this useful.
April 18th, 2008 at 9:50 pm
I’m kinda curious, from an economic theory perspective, how many lenders bump up against, yet, do not cross the $600/year interest income reporting minimum. It seems to me, there would be quite a bit considering most would have to share 1/4 of the profits with the IRS once they pass that threshold.
Do I have to pay taxes on the money I make at Prosper?
Your income from loan interest is taxable income. Each tax year that you earn $600 or more in interest or $600 or more in borrower fees, Prosper will send you a Consolidated Form 1099 summarizing your taxable interest income or taxable fees, and will report this 1099 information to the IRS. (In some cases, amounts less than $600 may be reported to state tax authorities based on individual state requirements, see below.)
Regardless of whether the interest income or fees are greater than or equal to $600, you are required by law to report these amounts on your tax return.
April 23rd, 2008 at 2:24 pm
Thanks for this map - very interesting. I fear we still have a long ways to go before home values are in line with rental rate equivalents and after-tax earnings. That is if the politicians don’t intervene and extend the pain longer.
April 23rd, 2008 at 9:02 pm
“…avoid lending to areas with the most problems.”
I imagine there is a high correlation between areas that are suffering the most from non-performing non-conforming loans and areas that have the greatest potential borrowers. Hmmm… Might have to look into that.