The US Mortgage Crisis

Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings New York- Northern New Jersey-Long Island 11.6% 3.6% Des Rapid City 7.9% 12.7% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings Des Mnes 12.7% New York- Northern New Jersey-Long Island 11.6% 3.6% Rapid City 7.9% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings Des Mnes 12.7% New York- Northern New Jersey-Long Island 11.6% 3.6% Rapid City 7.9% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings Des Mnes 12.7% New York- Northern New Jersey-Long Island 11.6% 3.6% Rapid City 7.9% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings Des Mnes 12.7% New York- Northern New Jersey-Long Island 11.6% 3.6% Rapid City 7.9% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES Minneapolis- St. Paul Detroit 20.6% Cleveland 21.6% Seattle 3.6% Barnstable 16.4% 17.1% Green Bay 12.8% Portland- Vancouver 5.1% Burlington 83% Stockton- - Lodi 21.0% Merced 21.3% Great Falls 5.3% Sacramento Boise 5.2% 17.2% Billings Des Mnes 12.7% New York- Northern New Jersey-Long Island 11.6% 3.6% Rapid City 7.9% Casper 4.1% Reno 9.5% -Washington 10.6% Denver Las Vegas 11.2% 11.7% St. Louis 11.3% Riverside- San Bemardino 14.9% Pueblo 10.6% Flagstatf 4.5% Tulsa - San Diego 13.0% 8.5% Santa Fe 5.9% Memphis 7.2% Phoenix- Mesa 8.8% Abuquerque 5.1% Atlanta 9.1% Charleston 6.7% Jackson 11.2% Highest rate of subprime foreclosures: Tucnon Dallas 6.1% 6.3% Las Cruces 5.8% Fort Myers- Cape Coral 24.1% METRICS HANNAH FAIRFIELD Naples 19.3% New Orleans 8.1% In the Shadow Of Foreclosures Tampa- St. Petersburg 11.9% Houston 5.6% Miami 11.7% Height shows subprime mortgage foreclosures as a percentage of all subprime mortgages in metropolitan areas Color shows subprime mortgages as a percentage of all mortgages December 2007 N the subprime mortgage squeeze, some regions are feeling the pain Imore acutely than others. Although many Southern metropoli- tan areas have high percentages of subprime mortgages, homeowners in those areas have largely been able to pay their bills, so subprime foreclosure rates are low Not so in the Rust Belt, where sub- prime mortgages are less common but foreclosure rates are sky-high, mostly a result of rising unemployment. And overbuilding in regions of Florida, California and other states with housing bubbles lured overeager residents to become speculators, buying up several homes with the expectation that their values would rise. Getting subprime loans was all too easy. But paying the loans as housing prices fall is all too hard, and many economists believe that foreclosures will continue to rise. "The collapse will affect other markets, like New York, Boston and D.C." said Dean Baker, co-director of the Center for Economic and Policy Research. "Suburban areas near those 9% 12 15 December 2007 Construction Boom Job Loss PERMITS FOR HOUSING UNITS PER 100,000 PEOPLE LUNEMPLOYMENT RATE December 2007 Average annual permits '04-'07 Below Above U.S. average Below Above U.S. average cities are already seeing prices plunge." Sources: First American Corelogic, LoanPerformance; Bureau of Labor Statistics; Census Bureau THE NEW YORK TIMES