The Natural Rate of Home Ownership and Solving the Foreclosure Crisis

The subprime mortgage crisis was caused by several factors. The "natural" home ownership rate has been statistically stable for decades, accounting for around 63%. For various reasons, in the last two decades, the parties have promoted easing eligibility criteria to increase the proportion of qualified Americans, thereby increasing the proportion of owners to more than 68%. Loan risk and liquidity management, insurance and repackaged loans are sold to third parties.

The problem of solving the foreclosure crisis first raised the question "Is there really a foreclosure crisis?" The crisis is indeed in danger, but it is not caused by foreclosure of mortgage loans. . Foreclosure is a mechanism to deal with debts that people can not borrow. The potential impact of housing foreclosure (slowing down by the "affordable family plan" of the Obama administration) is actually a market, not a debt but a crisis. The history of the world economy has experienced sovereign debt crises such as Latin America in the 1980s, Russia in the latter half of the 1990s, and Argentina in the early '00s. The debt crisis in Europe is the most important thing in the business world since 2010.

In the financial crisis research shows that blacks and Latin borrowers are unduly hurt by foreclosure. Between 2007 and 2009, responsible loan center estimates estimated that about 8% of African American and Latin American homeowners lost nearly twice the security interests of white homeowners. According to Mr. Bailey, African Americans are more likely to face foreclosure because they excessively target "poisonous" residential mortgages when the real estate market is booming. She said that it includes floating rate loans that will allow borrowers to face higher interest rates and payment for larger mortgages in the first few years.