CRC recently stumbled across a copy of a 2007 report entitled “Sustainability, not attainability: An Examination of Nontraditional Residential Mortgage Lending Products and Practices.” The report included testimony from some companies like New Century Mortgage, who caused billions of dollars in damage to the economy, to say nothing of the individual impact on families who lost their homes. You can order a copy of the report from the CA Senate for $11.75.
Below, we include some choice quotes about the valuable services that companies like New Century Mortgage were providing, or that community advocates didn’t know what they were talking about when they asked for stronger consumer protections. Of course, it turned out the advocates were right, these mortgage would go bad, and our economy would implode as a result. Perhaps smart regulation isn’t so bad after all? Especially when it comes to the largest asset that many American families will ever own?
Want to learn more about the cost of this crisis? Check out some other CRC posts below: