Given all the mortgage crisis talk I wanted to bring back a chart that was done on Kulow & Company's. It shows that 35% of homes have no mortgage at all. It shows 56% of mortgages would be classified as traditional mortgage products that have been sold for decades.
The "hot topic" sub prime accounts for 8.5% of loans nationally, and I believe that less than one half of one percent are currently in foreclosure.
It is not to say there is not a problem in pockets of cities where these products were concentrated. I do understand, as a Mayor, the blight and public safety concern.
However, in reality it was the politicians that created the Community Reinvestment Act that forced lenders to come up with products based on "feel good politics" rather than sound lending principles. If politicians want to help they should let the markets work in an area most legislators have no experience in, and at best reform or dismantle the Community Reinvestment Act.
