SGE Evening Seminar
Fallout from the Subprime Lending Crisis
Repercussions for Homeowners and Lenders
Monday, March 24, 2008 5:45-7:15 p.m.
Conference room 483, Congressional Budget Office
2nd & D Streets, SW, 4th Floor, Washington, DC 20515
(Metro: Federal Center SW Station)
Panel:
Kathleen Day, Vice President, Center for Responsible Lending
Jonathan Miller, Professional Staff Member, Senate Banking Committee
Light refreshments served. The seminar is free, but please E-mail Melvyn Sacks at MelSacks@cavtel.net for reservations.
At least 1.3 million mortgages were either seriously delinquent or in foreclosure at the end of the third quarter, according to the Mortgage Banking Industry U.S. home foreclosures for January increased 57 percent from a year earlier, and foreclosure filings rose 8 percent from the prior month after jumping 19 percent a year earlier.
Prices of homes are dropping. The S&P/Case-Shiller, fell 8.9 percent from a year earlier, the largest drop in its 20 years of data. Goldman Sachs Group Inc. estimates home prices ultimately will fall by 20 to 25 percent from the peak of the housing boom, making refinancing increasingly difficult and fueling further foreclosures.
Predatory lending, fraud, and unethical behavior on the part of many in the mortgage industry, as well as new esoteric mortgage instruments have contributed to the crisis. Financial institutions and banks have lost tens of billions of dollars in collateralized debt obligations, structured investment vehicles and other abstruse instruments.
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