Market Opportunity

The burst housing bubble and attendant mortgage dilemma continues to drag on the US economy. The housing market has been at the epicenter of the recent US financial crisis. In its highly unusual January 4, 2012 letter to Congress, The Federal Reserve emphasized that recovery of the US housing market is a prerequisite to a general economic recovery and that additional measures need to be taken to accelerate the recovery of the housing market.

In spite of the 2012 and 2013 housing recovery, US house prices are an average of 29% lower from their peak in 2006, resulting in a loss of over $6 trillion in household wealth.

The national economy is in a protracted slump, putting pressure on the ability of homeowners to service their mortgages.

We are living in an America with two economies. We are presently witnessing the biggest wealth destruction in Latino and African American communities and the biggest wealth transfer from the middle class to hedge funds.

In spite of the recent home price appreciation, we still have over nine million mortgages under water.

Prime mortgage delinquency rates rose from around 2% in 2008 to 17% in 2009 and are currently slightly under 14%.

In spite of the recent decline in foreclosures, we still have 3.7 million homeowners seriously delinquent facing the loss of their home either through foreclosure or short sale.