Experts differ on the extent to which the economy will be damaged as a result of the mortgage crisis. But almost all agree it's going to get a lot worse.
"A number of economists and banking industry experts believe the subprime crisis could metamorphose into the biggest debacle to hit the sector since the savings and loan catastrophe of the 1980s, which caused some $500 billion in losses to the banking industry. And that means the future of a couple of name-brand financial institutions could be in jeopardy."
"Much will depend on how far home prices tumble over the next few quarters, how high unemployment climbs, how many homeowners are pushed into foreclosure from rate resets, and, most importantly, how far the crisis spills into the conventional mortgage market and other parts of the credit sector."
"Many believe the government will ultimately step in with a housing industry bailout to the tune of hundreds of billions of dollars before it would allow a major bank to collapse."
"Subprime horror stories have been making headlines for much of the past year as falling home prices, a pullback in housing demand, overbuilding, interest rate resets, growing defaults and tightening lending standards played havoc in the residential market. A flurry of mortgage companies, including American Home Mortgage Investment Corp., New Century Financial Corp. and Delta Financial Corp., filed for Chapter 11 bankruptcy protection."
"Experts fear this is just the tip of the iceberg. There are $1 trillion in outstanding subprime mortgages, with potential losses estimated at about $250 billion, said Bose George, an equity analyst with Keefe, Bruyette & Woods Inc. Columbia University professor Charles Calomiris pegs the losses even higher - at between $300 and $400 billion."
"All of this comes as a large wave of ARM and hybrid mortgages are poised to reset this year - an event that could push the crisis into the conventional mortgage and credit markets. Once this happens, "it's almost impossible to imagine any bank or financial institution going unscathed and I would be very surprised if at least some aren't threatened," said Dean Baker, co-director of the Center for Economic and Policy Research, a Washington think tank. He believes the losses will easily exceed that of the S&L debacle."
FULL STORY: How Bad Will the Mortgage Crisis Get?

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?
As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

The Five Most-Changed American Cities
A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

San Diego Adopts First Mobility Master Plan
The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

Housing, Supportive Service Providers Brace for Federal Cuts
Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement
An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
New York City School Construction Authority
Village of Glen Ellyn
Central Transportation Planning Staff/Boston Region MPO
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
Regional Transportation Commission of Southern Nevada
Toledo-Lucas County Plan Commissions