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Reckless Lendings' Fallout Continues as MBA Shows 1 In 7 Mortgages Past Due
November 19, 2009The Mortgage Bankers Association (MBA) reported today that a record number of loans--1 in 7--is delinquent, up from 1 in 10 a year ago. Today's numbers also show that 1 in 22 families in the U.S. is in the process of losing their home, up from 1 in 34 a year ago. Based on these figures, we are now on track for 2.9 million foreclosure starts in this year alone. The lenders' trade association is quick to blame this worsening trend on higher unemployment levels. But that ignores the fact that reckless lending precipitated the economic crisis and prolongs it each day with every new foreclosure, which forces down surrounding property values. "The damage from reckless lending continues to harm more families and the economy," said Michael Calhoun, president of the Center for Responsible Lending. "These results underscore the need for a Consumer Financial Protection Agency to avoid another housing debacle and bring focus to the best interests of consumers--who drive 70% of the economy - and of taxpayers, who have to pick up the tab when lenders act irresponsibly." Full release.