Foreclosure crisis caused by “bubble fever” not lack of data

The foreclosure crisis was not the result of exploding option ARMs, poor housing policies or a lack of data.

Instead, Paul Willen, senior economist and policy advisor for the Federal Reserve Bank of Boston, blames it on a type of bubble fever that infected borrowers and financial institutions alike.

“It wasn’t the insiders who deceived borrowers and investors,” Willen said when speaking to a panel at the HousingWire REperform Conference in Dallas. “It was the idea that this was one of the greatest real estate booms in American history.”

In fact, Willen suggests all of the common causes typically assigned to the downturn are wrong.

Rest here…

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4closureFraud.org