A FORMER POSTING
OF OUR CONCERN RE MORTGAGE FORECLOSURES
ON LOW-INCOME FAMILIES

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WHAT ABOUT
AMERICAN CITIZENS
AND "LEGAL" IMMIGRANTS?

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However, our unspoken expectation,
 of the potential  horrors of horrors
is present REALITY!

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The actualization of the mortgage foreclosure issues tipped the ethical scales in our illegal immigration consensus:
Nightmare
of
NIGHTMARES

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MORTGAGE
FORECLOSURES

on

THE MIDDLE-CLASS
LOSS OF A US  FAMILY'S HOME IS
THE LOSS OF THE AMERICAN DREAM

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FORECLOSURES INCREASED
 90%
OVER LAST YEAR

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Our unspoken, however,  worst fear was   realized.  When the price of a barrel of oil was being "speculated" to astronomical heights - unrelated  even to monopolistic supply and demand standards. Of course, this would INFLATE  the economy.  We expressed serious concern, the FED  would, of course, be required to intervene to raise interest rates - to slow the economy.  In turn, these rate hikes would skyrocket adjustable mortgage home interest rates. The War against The Middle-Class further escalate.   Middle-Class families - unable to meet their increased monthly payment -  would be foreclosed upon by the banks.   Yes. Here in America, people would  LOSE THEIR HOMES!!!   This reality is reminiscent of The Great Depression.   Directly Put:  For many The American Dream is dead! Impossible for them to own their own home; as they spiral  downward into the New Working Poor Class.  It is time for THE GREAT Rethinking - THE National CONVENTION - for The American People - Government and Business to  decide our course for the 21st Century. It is either NOW; or, frankly, The American Middle-Class and The American Dream is lost!

P.S.  This was  the final reason  for  our ILLEGAL immigration conclusions.

Research NOTE:
THERE APPEARS TO BE Disagreement REGARDING rhe NUMBER OF Potential FORECLOSURES.   DIFFERENT ESTIMATES RANGE FROM 1.5 TO 3.8 MILLION.  WE ARE REVISTING THE STUDY OF THESE STATISTICS.

We Apologize for the depressing Foreclosure News:

Note BLOCK=FORMAT Utilized TO CONDENSE RESEARCH regrettably very depress news 

ROUGH DRAFT

                 Number of        Cut-off Date  
Designation   Mortgage Loans   Principal Balance*
-----------   --------------   ------------------
                                                
Group 1             170          $ 84,082,040.57
Group 2             311          $163,997,316.88
Group 3             257          $123,993,458.27
Group 4             184          $104,433,826.77
Group 5             371          $ 80,291,558.43
Group 6             493          $100,651,154.17
Group 7A            571          $109,678,043.23
Group 7B            929          $243,530,972.68
As this year ends, 2997 2.2 million households in the subprime market either have lost their homes to foreclosure or hold subprime mortgages  will fail over the next several years. These foreclosures will cost as much as $164 billion, in lost home equity e project  one out of five (19 percent) subprime mortgages originated during the past two years will end in foreclosure. This rate is nearly double the projected rate of subprime loans made in2002, and it exceeds the worst foreclosure experience in the modern mortgage market, which occurred during the ?Oil Patch? disaster of the

1980s. In brief, these are the key findings:Even during the recent period of strong housing  ppreciation, subprime foreclosures have been high. As many as one in eight (13 percent) subprime home loans ended in foreclosure within five years of origination. The past housing boom masked the high proportion of homeowners who have struggled with subprime loans. For many borrowers, strong house price growth increased the amount of equity intheir homes and enabled them to refinance their mortgages despite being behind on the monthly payments. When these distressed prepayment are added to the foreclosure rates, the total ?failure rate? for subprime loans  pproaches 25 percent.Key Findings? 2.2 million subprime home loans  made in recent years  have already failed or will end in foreclosure. ? These foreclosures will cost homeowners as much as $164 billion.? One out of five subprime mortgages  during the past two years will end in foreclosure. [About this Research study] projects foreclosures on subprime home loans made nationwide during each year from 1998 through 2006, and measures the effects of housing appreciation on loan performance. We estimate future foreclosure rates using housing appreciation forecasts  developed by Moody?s Economy.com, and predict subprime foreclosure rates in all major metropolitan areas in the United States. The study also  xamines factors associated with subprime foreclosures, including high-risk features typically included in subprime home loans.   housing prices decline, subprime foreclosures will rise.   the housing boom hascooled, fewer delinquent borrowers  will have the equity needed to refinance their loan or sell their home to avoid foreclosure.   Our results confirm  foreclosures are more likely in housing markets with lower house  price growth. The chance of foreclosure on a subprime loan doubled between 2002 and 2005. Sub prime loans originated in 2002 have a one-in-ten lifetime chance of oreclosing. For  loans originated in 2005 and 2006, the probability shoots up to one in five. Multiple subprime loans boost foreclosure risk even higher. Lenders often portray sub prime loans as a stepping-stone to a prime loan. In reality, many borrowers in the subprime market refinance from one subprime loan to another, losing equity each time to cover the cost of get-ting a new loan. When we analyze the likelihood of foreclosure for borrowers who repeatedly refinance, we find  the risk of losing the home climbs to 36 percent. While more research needed, this estimate relies on assumptions drawn directly from refinance patterns in the sub prime market. Why Sub prime Foreclosures MatterThe report describes the first comprehensive   research on foreclosures in the sub prime market, assessing how frequently subprime mortgages fail and the associated costs tohomeowners. The loss of home equity is significant because, for most families, the value this ownership is their greatest

financial asset.  roughly one quarter of all home loans made in the United States. Our research shows  subprime foreclosure levels have been extraordinarily high even during the recent past. As housing appreciation slows, subprime foreclosures will rise even higher in the future. The losses will inevitably have ripple effects throughout theeconomy and our society as over two million families lose their physical shelter, their major source of financial security, and the social benefits of homeownership. Increased foreclosures will have an adverse impact on many local markets and

specific communities.  Problem Markets. Real   increases insubprime foreclosures will be the norm. Using recent Moody?s  Economy.com housing appreciation forecasts,  we  project subprime foreclosure rates in every major metropolitan  in the U.S. Our data show  cities in
California,
Nevada,
New Jersey,
New York and
 Michigan, aswell as the greater Washington, D.C. area, can expect a high rate of subprime foreclosures.Vulnerable Homeowners. It is beyond the   racial disparities related to subprime foreclosures. s will affect agreat many African American and Latino homeowners, since these communities receive  a disproportionate share of subprime  loans.The following factors contribute to subprime foreclosures:  of subprime loan today is an adjustable-rate mortgage called a ?2/28?  features semi-annual interest rate adjustments  after a two-year fixed-rate period. The initial fixed rate is often a discounted or?teaser? rate, so the rate adjustment can lead to a   gnificantly higher payment.  , these loans are sometimes referred to as  exploding ARMs.? Loose Underwriting. Lax underwriting standards magnify the risk of loans  already include high-risk features. Sub prime lenders who market exploding ARMs and other high-risk loans often do not adequately consider whether the homeowner will be able to pay when the loan?s interest rate resets,even if rates stay constant. Lenders escalate the risk of foreclosure even further when they fail torequire escrow for the cost of property taxes and hazard insurance, and when they approve loans without verifying the borrower?s income and employment. Predatory  Lending. This report does not attempt to measure how predatory lending may contributed subprime foreclosures, but we make several points  suggest predatory practices may play alarmed role: In recent years, more subprime lenders with significant market share have been success-fully prosecuted for predatory lending activities. In addition, high-risk loan products and terms, socommon in the subprime market, make it easier for unscrupulous lenders to entice borrowers with allow initial payment, regardless of whether the borrower can manage future payments. Costly  fees and prepayment penalties associated with predatory loans also strip equity, making it harder for borrower to refinance and forcing them into foreclosure more quickly. We also note reports of increasing problems associated with foreclosure ?rescue? scams.    Third-Party Originators/Lack of Accountability. Mortgage brokers, who originate the majority of subprime mortgages, have a strong incentive to close as many loans as possible, but very little reason consider the loans? future performance. Lenders shield themselves from the full potential cost foreclosures by selling their loans to investors through the secondary mortgage market. Together,third-party originations and the risk dispersion made possible through the secondary market help distance loan originators from seriously adverse consequences of  reclosures.Inadequate Oversight: Today there are insufficient legal and regulatory consequences for making home loans  are not appropriate or ffordable for  the borrower. Recently federal and state regulators issued guidance requiring lenders to tighten credit standards on certain  high-risk home loans.However, these standards do not apply to all risky loan products and questionable business practices common in the subprime  market.Proposed Solutions With billions of dollars in equity already lost, there is an urgent need to curtail foreclosures in the sub prime market and mitigate losses families will incur in the future on unsustainable mortgages. Inbrief, CRL recommends the   lowing:Establish  every borrower has the means to repay his/her loan?without resorting to selling the property or refinancing under pressure. Unless subprime lenders ensure borrowers can afford their loans, other efforts to prevent foreclosures will have minimal success. For example, when offering loans with scheduled interest rate changes, lenders should consider whether the borrower will beable to afford the mortgage after the initial fixed ?teaser? rate expires. Sub prime lenders also should require escrow payments and appropriate verification of the borrower?s income, and they should con-firm  the loans they offer make economic sense for a given borrower?s   ircumstances.Ensure  all parties involved in the loan operate in good faith, and  everyone?not just the borrower?has a stake in a successful loan outcome. Recently several major banking regulators  suedguidanceRoughly $1.5-trillion in adjustable rate mortgages (ARMs) are scheduled for interest-rate rests between now and the end of 2009, according to figures from Credit Suisse. Resets upward from initial ?teaser? rates generally occur when ARMs have been in effect for two or three years. At  time monthly payments make  a dramatic increase  place them out-of-reach to many homeowners. All these foreclosures add to the total of unsold homes on the market, which is already glutted with them. As a result, housing values are declining and the sale of existing homes has dropped for the eighth consecutive month in 2007.2007 Origination Volume Projected to Fall Says MBAWednesday, January 17, 2007 -   Avg. User Rating  
WASHINGTON, DC - The Mortgage Bankers Association (MBA) projects  economic growth in the first half of this year will accelerate from the  second half of last year, averaging 3.0 percent in 2007.  MBA expects growth to pick up, returning to near trend growth (about 3-1/4 percent) over  the course of 2008 and through 2009. MBA also forecasts total residential mortgage production in 2007 to be $2.39 trillion.   Existing home price  appreciation is expected to slow significantly over the next three years.  Median prices should remain relatively flat for both new and existing

homes.  Price gains for in 2008 and 2009 are expected to limited to about 2 percent. Residential mortgage originations for purchase loans will reach   o $1.33 trillion in 2007 and will remain flat in 2008. Residential refinance loans will total $1.06 trillion in 2007 and then decline to $957 billion in   2008.  For 2009, purchase originations should edge up slightly while refinance originations should decline to about $800 billon.  Total residential mortgage production in 2007 will be $2.39 trillion -- declining by about 5 percent from an estimated $2.51 trillion in 2006. Total mortgage originations should decline an additional 4 percent to $2.29 trillion in 2008 and drop another 6 percent to $2.15 trillion in 2009 Sales of existing single-family residences  and condos went down by 1.2% and the median price of a home declined to just under $208,000 which represents a drop of 5.1% from last year?s  median price.  is the largest year-after-year price decline ever recorded.   the biggest losses  are projected for some of the nation's largest   metropolitan areas. New York  to lose $10.4 billion  in economic activity in 2008, followed by Los Angeles at $8.3 billion   Dallas and ashington at  $4 billion  each, and Chicago at $3.9 billion (euro2.6 billion). the report estimates U.S. gross domestic product growth in 2008 will be 1.9 percent, coming in about $166 billion. or one percentage point _ lower as a result of mortgage s.
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