The Center for Responsible Lending plans to release a study today projecting the spillover effects of foreclosures on communities.
The consumer advocacy wing of the Self-Help Credit Union, released a study in December that predicted 2.2 million subprime loans originated between 1998 and 2006 would wind up in foreclosure. That study also estimated foreclosures would cost about $164 billion in lost wealth.
Banking groups such as the Mortgage Bankers Association questioned the validity of the estimate, but several lawmakers, including Senate Banking Committee Chairman Chris Dodd, D-Conn., and Rep. Carolyn Maloney, D-N.Y., who chairs the House Financial Services financial institutions subcommittee, have quoted the center's predictions frequently in speeches and hearings this year.
