Wilmington, NC

Housing Crisis of 2008 

The media has long blamed the banks for creating the housing crisis of 2008.  Yes, the banks bundled prime Fannie Mae conforming loans with sub-prime loans.  The sub-prime loans yielded much higher interest rates than the conforming loans.  There was also more risk that some of these homeowners would default on the loans.  If the banks had not been so quick to take foreclose actions the market might have been able to maintain its values to enable the troubled owner time to sell their home.  The Bankruptcy Act of 2005 created problems for homeowners that led to the massive defaults on mortgage which led to the housing crisis which led to the collapse of 359 banks starting in 2007.  This video will help explain what really happened.