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 FINANCIAL CRISIS INQUIRY COMMISSION REPORT

Now  of the homes in the Hunts’ neighborhood are in default, are in the fore-

closure process, or have been taken back by the bank. Most of the other houses in
the community are occupied by renters whose absentee landlords bought the houses
when the homeowners lost their homes to their banks. The Hunts’ house has lost
two-thirds of its value from the peak of the market. Nonetheless, even though the
neighborhood is not as lovely as it used to be, Dawn Hunt told the FCIC, “I’m not
leaving.” 

COMMISSION CONCLUSIONS ON CHAPTER 22

The Commission concludes the unchecked increase in the complexity of mort-
gages and securitization has made it more difficult to solve problems in the
mortgage market. This complexity has created powerful competing interests, in-
cluding those of the holders of first and second mortgages and of mortgage ser-
vicers; has reduced transparency for policy makers, regulators, financial
institutions, and homeowners; and has impeded mortgage modifications. The
resulting disputes and inaction have caused pain largely borne by individual
homeowners and created further uncertainty about the health of the housing
market and financial institutions.