Opinion: New Evidence on the Foreclosure Crisis

by Sabrina I. Pacifici on July 5, 2009

WSJ: New Evidence on the Foreclosure Crisis, – Zero money down, not subprime loans, led to the mortgage meltdown, by Stan Liebowitz, Ashbel Smith Professor of Economics, University of Texas at Dallas: “…the focus on subprimes ignores the widely available industry facts (reported by the Mortgage Bankers Association) that 51% of all foreclosed homes had prime loans, not subprime, and that the foreclosure rate for prime loans grew by 488% compared to a growth rate of 200% for subprime foreclosures. (These percentages are based on the period since the steep ascent in foreclosures began — the third quarter of 2006 — during which more than 4.3 million homes went into foreclosure.)”

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