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 FINANCIAL CRISIS INQUIRY COMMISSION REPORT

“Underwater” Mortgages
Many mortgage holders find themselves underwater; that is, owing more
than their homes are worth. This is particularly true in Arizona, California,
Florida, Michigan, and Nevada.
SHARE OF LOANS WITH NEGATIVE EQUITY, THIRD QUARTER 2010

>50%
30–49
WA
15–29
MT 0–14 ME
NA
OR ND
VT
ID MN NH
SD WI NY MA
WY
MI CT RI
NV NE IA PA NJ
UT OH DE
CA IL IN DC
CO WV MD
KS MO VA
KY
NC
AZ TN
NM OK
AR SC
MS AL GA
TX LA U.S. average
23%
FL
AK
HI

SOURCE: CoreLogic

Figure .

“There was a fundamental change in our financial services sector that really is the
reason we’re in this crisis, this economic crisis, and is the reason we’re seeing and will
see in total probably before we’re done, between  and  million foreclosure filings
in this country,” John Taylor, the president and CEO of the National Community
Reinvestment Coalition, explained to the FCIC. “And by the way, a few hundred
thousand people, even a million people going into foreclosure, you can kind of blame
and say, ‘Well they should have known better.’ But  [or]  million American fami-
lies can’t all be wrong. They can’t all be greedy and they can’t all be stupid.” 