Mortgage crisis facts
The housing market crisis has been receiving media attention for sometime now. Individual borrowers and investors are feeling the crunch, and so are U.S. and international markets. The following facts offer insight into the breadth of the crisis:
- Nearly 25% of all mortgage loans made in 2005 were interest-only. 1
- From 2004 to 2006, more than 2,500 banks, thrifts, credit unions and mortgage companies made a combined $1.5 trillion in high-interest-rate loans. 2
- In 2005, borrowers with FICO® scores above 620 got more than half – 55% – of all subprime mortgages. 3
- Every three months, approximately 167,000 new families enter into foreclosure in the United States. 4
- Roughly 50% of homeowners who enter into foreclosure never contact their lender, even though their lender is the party most able to help them stay in their homes. 4
- In 2006, over 40,000 homeowners at risk called the (888-995-HOPE) hotline. Nearly half of them have avoided foreclosure. 4
1 Fed Chairman, Alan Greenspan at Joint Economic Committee 2006
2 Wall Street Journal – 10/07
3 First American LoanPerformance – San Francisco Research firm
4 Mortgage Bankers Association – My Money Management Article
