It’s usually poor folks who are victimized from excessively high-interest rate or predatory loans.

But a recent study completed for the San Diego City-County Reinvestment Task Force found that nearly three out of four so-called predatory loans were made to borrowers with middle and upper incomes.

The study also called attention to the rising use of interest-only mortgages, which could be considered predatory if these include higher fees and points, balloon payments at the end of the term, and penalties for late payments or pre-payments.

“It used to be the lack of standard fixed-rate mortgages in certain neighborhoods, and for certain populations,” said Jim Bliesner, director for the Reinvestment Task Force. “Now the issue is that there’s more lending going to low- and moderate-income neighborhoods, but the cost of those loans is too high and dangerous.”

A joint city-county program funds the task force that monitors banks on lending activities and compliance with federal laws pertaining to community reinvestment.

The report used lending data supplied by mortgage lenders as required by the Home Mortgage Disclosure Act for 2004.

The report, compiled by Bouton & Associates, a San Diego bank consulting firm, found 30,000 of 219,000 loans approved in 2004, or 14 percent, were considered predatory.

While 27 percent of the predatory loans were made to low- and moderate-income borrowers, a startling 73 percent of the borrowers came from either middle-income or upper- income census tracts, the report stated.

Middle income was defined as 80 percent to 120 percent of the national median family income of $62,400 by the federal government. Upper income was 120 percent or more of the median family income.

“There aren’t as many affordable homes in the low- and moderate-income areas so there’s fewer loan applications from there,” said Steve Bouton, the report’s author.

“What we’re seeing is that a lot of people are getting into these loans because they don’t have the financial resources to get into traditional home loans.”

Predatory Characteristics

The report doesn’t define predatory lending, but Bouton said the term refers to loans with excessive interest rates and higher points and fees, balloon payments and huge penalties for prepayment.