Here’s the money shot:
Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
This should — but won’t — be the final nail in the coffin of two arguments:
- The Community Reinvestment Act was the cause of all our woes.
- Fannie and Freddie were the cause of all our woes.
It’s highly unlikely — if not outright impossible — that CRA, Fannie, or Freddie to have had a hand in any of these now-sour loans. The CRA/FNM/FRE argument has been rebutted here and elsewhere more times than I can count, yet it has always refused to die. Now, perhaps, we can close the book on it and move on.
Unlikely, I know, but I can always hope.
We’re Moving On Up! To the Top! To that Deluxe….
We’re All Subprime Now And Forever
Rich Defaulting on Mortgages At Highest Rate
Jingle mail datapoint of the day
Ruthless Rich Dumping Mortgages
Outside The Beltway