Americans Believe Mortgage Fraud Wrecked Real Estate Market
More than three out of four Americans believe mortgage fraud wrecked the booming real estate market, according to a poll conducted by Housing Predictor.com, an information driven web site, which forecasts local housing markets in all 50 U.S. States.
A nearly over-whelming majority of 76% of respondents said that loan fraud has had a negative effect on the markets. The poll was conducted over a 45 day period ending just yesterday. Another 20% of respondents said they believed that loan fraud did not have an impact, while the remaining four percent were undecided.
The Predictor Poll is especially timely since Congress is embroiled in tackling the growing sub-prime loan crisis. Foreclosures of homes rose 47% nationally in March as a result of loose lending guidelines and unscrupulous lenders and mortgage borrowers. The nationís foreclosure rate, however, was much higher during the U.S. Savings and Loan Fraud Crisis in the early 1990ís. That crisis resulted in major bailouts by the government costing every man, woman and child in the nation an estimated $10,000.
Congress is considering new laws to control the mortgage industry, which many feel would cause a backlash for homeowners, many of whom need to refinance out of adjustable rate mortgages coming due and result in an even higher rate of foreclosures.
The increase in foreclosures has been part of the Housing Predictor forecast model since the beginning of 2007, long before the rise in foreclosures. Researchers for Housing Predictor became aware of the growing problem of mortgage fraud more than two years ago.
Despite the increase in mortgage fraud cases and the resulting hike in foreclosures, 13 states have at least some local housing markets which are performing strongly and are appreciating. Housing Predictor forecasted in early March that the number of appreciating markets will increase to include more housing markets by late summer.
Housing Predictor regularly surveys visitors for their opinions on crucial economic issues related to real estate, widely considered as the single largest driving force of the U.S. economy. Some 68% of the nationís population are now homeowners, an all-time high.
To take the latest Predictor Poll, check on your markets forecast and search for real estate listings visit http://www.housingpredictor.com
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- Mike Colpitts
- Housing Predictor
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