A rising "foreclosure tsunami" is ripping through America's heartland, and Milwaukee is one of the markets that will be most devastated, according to a new report by the National Community Reinvestment Coalition (NCRC).

Milwaukee ranks fourth-worst among 251 statistical metropolitan areas in NCRC's study of overall racial disparities for loan rates given to homeowners. According to the report, more high-cost or subprime loans with adjustable rate mortgages (ARMs) are likely to be made to minorities in Milwaukee than most American cities.

The 10 worst American cities for racial disparities in lending cited in the report are: (1) Charleston, S.C.; (2) Bridgeport, Conn.; (3) Omaha, Neb.; (4) Milwaukee, Wis.; (5) Springfield, Mass.; (6) Minneapolis-St. Paul, Minn.; (7) Philadelphia, Pa.; (8) Trenton, N.J.; (9) Birmingham, Ala.; and (10) Greenville, S.C.

The report, titled "Income is No Shield Against Racial Differences in Lending," is a comparison of high-cost lending in America's urban areas.

Nationwide, up to 2 million ARMs with low "teaser" rates will shoot upward to much higher interest rates during the next 18 months. A disproportionate number of these impending foreclosures will affect the Midwest, including Milwaukee.

High-cost loans become unaffordable to many families as interest rates rise after the introductory rates.

"These high-cost loans threaten the financial well-being not only of homeowners in Milwaukee, but millions of families across the country. In fact, the foreclosure crisis has already had an impact in neighborhoods across the Midwest," the NCRC stated.

A special report by the U.S. Congressional Joint Economic Committee in April estimated that the full cost of foreclosures for all stakeholders - borrowers, neighboring homeowners, lenders, city and local governments - can reach $80,000 per foreclosed mortgage.

"There is no more valuable asset for most Americans than their home" said John Taylor, president and chief executive officer of the NCRC. "Predatory loans diminish the value of homeownership because they strip equity and undermine families' ability to build assets."

To protect the benefits of homeownership, NCRC advocates that national and state officials adopt and enforce policies that better regulate subprime lending terms, monitor lending and real estate practices in this growing sector, and educate and protect borrowers.

On Tuesday and Wednesday, the NCRC will conduct a regional conference at the Radisson Quad-City Plaza in Davenport, Iowa. The conference is devoted to examining fair lending issues, including the foreclosure crisis.

Former Iowa Gov. Tom Vilsack and U.S. Rep. Bruce Braley (D-Iowa) will address the conference, which will also feature local and national experts exploring regional economic development issues, including discussion of the 2007 Farm Bill.

For more information about the foreclosure crisis and the conference, visit www.ncrc.org.