Pennsylvania now has some of the highest mortgage foreclosure rates in the nation. The prime foreclosure rate at .85 percent is the ninth highest; the subprime rate, which is orders of magnitude higher at 11.9 percent, ranks fourth. While economic factors and "triggers" traditionally used to explain foreclosure rates are relatively predictive of the prime rate in Pennsylvania, they are less so of the subprime rate. A more detailed analysis of foreclosure filings in Pennsylvania reveals that the subprime foreclosure rate is driving rising foreclosure filings around the state.

Mortgage markets in Pennsylvania need to flourish. To them to do so, the state must balance its interest in ensuring these markets work well with concern for the impact of these markets on consumers and communities. Any strategy to do this will likely need to attack more than just one of the causes identified in this study, but at a minimum should ensure that 1) laws and regulations in Pennsylvania are designed and enforced to protect consumers from abusive lending practices, while not limiting legitimate lending and 2) consumers (and future generations of consumers) have the financial education necessary to make informed decisions about debt and personal finances.