Housing advocates warn of default ‘tsunami’

[cal04]

Concern grows over spillover of mortgage foreclosures, falling prices
A coalition of housing groups and advocates for the poor on Thursday warned of a growing “mortgage tsunami” affecting millions of Americans, particularly minorities, as fears rose that rising defaults could spill over into the broader economy.

The National Community Reinvestment Coalition said tougher laws are needed to protect consumers from lenders pushing high-interest home loans, adding that federal regulators and members of Congress had ignored warnings for years about a potential wave of defaults in risky loans.

“We have for many years urged Congress and urged those who are responsible to take action,” said John Taylor, president of the coalition, which includes 640 groups nationwide. “Frankly, it’s appalling what they haven’t done. ... Today we call on the (Bush) administration and the Congress to take back the reins.”

The warning was the latest development in a growing wave of concern over so-called subprime mortgages given to buyers with poor credit histories during the housing boom of the past few years. Now that housing prices are stabilizing or falling in some markets, many of those mortgage holders are defaulting, saddling the lenders with crippling losses.

http://www.msnbc.msn.com/id/17628941/

[phantom power]

1. They oughtta be afraid.

[Double T]

2. Sorry. Don't feel ANY sympathy for the lenders at all............

the criminal greedy lenders created their own bed of trouble