Cracks in the Foundation of Federal Law: Ameliorating the Ongoing Mortgage Foreclosure Crisis through Broader Predatory Lending Relief and Deterrence
The ongoing U.S. mortgage foreclosure crisis worsened significantly in 2008 and the first half of 2009. At the end of September 2009, a record 14.4 percent of mortgage borrowers were either in foreclosure or delinquent on their mortgages. The Congressional Budget Office (CBO) estimated that 2.2 million homeowners with subprime and Alt-A mortgages, the categories thought to be riskiest to borrowers, will have foreclosure proceedings initiated against them between October 1, 2008, and September 30, 2011. Projections by the Center for Responsible Lending (CRL) are much higher, predicting that 9 million prime and subprime home loans will be foreclosed from 2009 to 2012. Other consumer advocates estimate 16 percent of all home mortgages will foreclose in the next four years.