CRL Notes ‘Dismal Milestone’

llion new foreclosures have been filed so far in 2009, according to estimates by the Center for Responsible Lending (CRL). This comes on the heels of a new report from the Mortgage Bankers Association (MBA), the first quarter 2009 National Delinquency Survey, showing that 12% of all mortgages are now delinquent – the highest level since the MBA started measuring 37 years ago. ‘The escalation of foreclosures on all types of loans is alarming,’ says Michael Calhoun, president of CRL. ‘It's easy to think, 'Well, that's tough luck for the families that lose their homes.' The truth is that foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy. Foreclosures started today's crisis, and foreclosures will keep the crisis going if this epidemic continues.’ CRL projects 2.4 million foreclosure starts in 2009, with these foreclosures reducing the property values of some 70 million nearby households a total of $502 billion – about $7,200 per family. Through 2012, those numbers will rise to at least 9 million foreclosures that will cost 92 million neighboring families $1.9 trillion in lost home value, the research and policy organization says. SOURCE: Center for Responsible


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