The State of Lending: Mortgages

Published: December 12, 2012

Despite the worst housing crisis since the Great Depression, owning a home is still central to the hopes and aspirations of many Americans. Even with the recent decline in house prices, owning a home can bestow more financial and non-financial benefits than any other single asset. This means more economic mobility and financial security for families, and stronger communities too.

As this chapter explains, the shift away from standard mortgage loans and strong underwriting during the 1990s and early 2000s, along with a fractured regulatory environment, sparked the foreclosure crisis and economic meltdown. New mortgage reforms in the Dodd-Frank Act and efforts of the Consumer Financial Protection Bureau and state regulators will help ensure this disaster does not reoccur. At the same time, there is a strong need to prevent even more foreclosures and ensure that the rebuilt mortgage market preserves access to credit for families who could be successful homeowners.

Overview [Video]

CRL Senior Researcher Debbie Bocian covers the key findings in the "Mortgages" chapter of State of Lending.

The “Spillover” Cost of Foreclosures by State [Interactive Map]

Our interactive map shows the spillover costs of foreclosures for each state.

The Three Scapegoats [Infographic]

Ever since the financial crisis started, the Blame Game has been a popular pastime. In this infographic, we highlight players who often get more than their share of pointing fingers.

Nationwide, foreclosures have drained nearly $2 trillion in property value from families who
live nearby, more than half of them African-American or Latino.* This loss in wealth has hit some areas of the country harder than others. Here we break down the spillover costs for each state, showing total lost wealth, number of households affected and average home equity lost.

For more details on this report, see “Collateral Damage: The Spillover Costs of Foreclosures.”

*Results apply to loans that entered foreclosure between 2007 through 2011.



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State of Lending Visualized

Visualizing the state of lending

Visual resources illustrating some of the findings from the State of Lending research

Visualizing the State of Lending

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