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Jim - I do think that it is coincidence. If you said lower income and minority borrower concentrations I would be somewhat agreeing with you but I don't think the illegal question factors into this at all. If you look at MA data (notice that MA is pretty blue on the map) you'll see that the highest rates of foreclosure are in cities with the lowest avg. income...Worchester, Brockton, etc. Interesting enough in the Weymouth/Quincy area (both in the top 20 in MA) we have plotted data and obtained info. from Banker & Tradesman to see where and who are impacted and we have found that there don't appear to be concentrations in the lower income block groups nor is it a predominently low income problem. In fact the foreclosed properties are scattered and many are higher priced refinances, condo's and newer high end properties. Both of these communities have been involved in first time buyer programs for people <80% of median income since the early 90's. These programs generally require fixed rate, 30 yr. financing and "certified" homebuyer counseling. With hundreds of people assisted under these programs there have been almost no foreclosures. This tends to reaffirm the belief that educated buyers regardless of income or ethnicity don't fall prey to predatory lending.
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