- Some 20% of homeowners are either unable or unwilling to make their mortgage payments - - the remaining 80% in turned have seen their prices driven lower. Pareto is probably at work - - 80% of the problem is in 20% of the system. And 51% of us need to agree on a mechanism to fix 20% of a system or 100% basically suffer the consequences.
- In 2004, home ownership was at a record 69.4% - - stripping out delinquent borrowers (who are already basically renters) - - the current ownership rate might be in the 60% range.
- The actual ownership rate could drop to 61% in the next three years - - the rate has not been below 62% since 1960. In the context of home ownership - - we are moving toward rates seen 50 years ago. Your iPad is about tomorrow - - while the roof over your head is increasingly about yesterday.
- Count on another 10.4 million borrowers defaulting in the coming years.
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