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554 Notes to Chapter 1

6. Richard C. Breeden, interview by FCIC, October 14, 2010.
7. Paul A. McCulley, testimony before the FCIC, Hearing on the Shadow Banking System, day 2, ses-
sion 3: Institutions Participating in the Shadow Banking System, May 6, 2010, transcript, p. 249.
8. Arnold Cattani, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—Greater
Bakersfield, session 2: Local Banking, September 7, 2010, transcript pp. 25, 61.
9. William Martin, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—State
of Nevada, session 2: The Impact of the Financial Crisis on Businesses of Nevada, September 8, 2010,
transcript, p. 76.
10. Inside Mortgage Finance, The 2009 Mortgage Market Statistical Annual, vol. 1, The Primary Mar-
ket (: Inside Mortgage Finance, 2009), p. 4, “Mortgage Product by Origination.”
11. Data provided to the FCIC by National Association of Realtors: national home price data from
sales of existing homes, comparing second-quarter 1998 ($135,800) and second-quarter 2006 ($227,100),
the national peak in prices.
12. Core-based statistical area house prices for Sacramento–Arden–Arcade–Roseville CA Metropoli-
tan Statistical Area, CoreLogic data.
13. Data provided by CoreLogic, Home Price Index for Urban Areas. FCIC staff calculated house
price growth from January 2001 to peak of each market. Prices increased at least 50% in 401 cities, at least
75% in 217 cities, at least 100% in 112 cities, at least 125% in 63 cities, and more than 150% in 16 cities.
14. Updated data provided by James Kennedy and Alan Greenspan, whose data originally appeared in
“Sources and Uses of Equity Extracted from Homes,” Finance and Economics Discussion Series, Federal
Reserve Board, 2007-20 (March 2007).
15. “Mortgage Originations Rise in First Half of 2005; Demand for Interest Only, Option ARM and
Alt-A Products Increases,” Mortgage Bankers Association press release, October 25, 2005.
16. In 2007, the weekly wage of New York investment banker was $16,849; of the average privately
employed worker, $841.
17. Federal Reserve Survey of Consumer Finances, tabulated by FCIC.
18. Angelo Mozilo, interview by FCIC, September 24, 2010.
19. Michael Mayo, testimony before the First Public Hearing of the FCIC, day 1, panel 2: Financial
Market Participants, January 13, 2010, transcript, p. 114.
20. “Mortgage Originations Rise in First Half of 2005,” MBA press release, October 27, 2005.
21. Yuliya Demyanyk and Yadav K. Gopalan, “Subprime ARMs: Popular Loans, Poor Performance,”
Federal Reserve Bank of St. Louis, Bridges (Spring 2007).
22. Ann Fulmer, vice president of Business Relations, Interthinx (session 1: Overview of Mortgage
Fraud), and Ellen Wilcox, special agent, Florida Department of Law Enforcement (session 2: Uncovering
Mortgage Fraud in Miami), testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Miami, September 21, 2010.
23. Julia Gordon and Michael Calhoun, Center for Responsible Lending, interview by FCIC, Septem-
ber 16, 2010.
24. Faith Schwartz, at Consumer Advisory Council meeting, Thursday, March 30, 2006.
25. Federal Reserve Board, “Mean Value of Mortgages or Home-Equity Loans for Families with Hold-
ings,” in SCF Chartbook, June 15, 2009, tables updated to February 18, 2010.
26. Christopher Cruise, interview by FCIC, August 20, 2010.
27. Ibid.
28. Robert Kuttner, interview by FCIC, August 5, 2010.
29. Timothy Geithner, testimony before the FCIC, Hearing on the Shadow Banking System, day 2,
session 2: Perspective on the Shadow Banking System, May 6, 2010, transcript, p. 146.
30. James Ryan, chief marketing officer at CitiFinancial and John Schachtel, executive vice president
of CitiFinancial, interview by FCIC, February 3, 2010.
31. These points were made to the FCIC by consumer advocates: e.g., Kevin Stein, associate director,
California Reinvestment Coalition, at the Hearing on the Impact of the Financial Crisis—Sacramento, ses-
sion 2: Mortgage Origination, Mortgage Fraud and Predatory Lending in the Sacramento Region, Septem-
ber 23, 2010; Gail Burks, president and CEO, Nevada Fair Housing Center, at the Hearing on the Impact of
the Financial Crisis—State of Nevada, session 3: The Impact of the Financial Crisis on Nevada Real Estate,
September 8, 2010. See also Federal Reserve Consumer Advisory Council transcripts, March 25, 2004;
June 24, 2004; October 28, 2004; March 17, 2005; October 27, 2005; June 22, 2006; October 26, 2006.