Supervisors Symposium

OVERVIEW

• Mortgage defaults were devastating during the global financial crisis • 7.8 million foreclosures occurred from 2007-2016 (CoreLogic); normally would expect perhaps 2.5 million foreclosures over a ten-year period • Defaults contributed to a 50% decrease in the number of nonbank mortgage companies from 2006-2012—nearly 1,000 companies (Bhutta and Canner, 2013)

• Reforms since 2008 make such a dire outcome unlikely today, but the mortgage system may still be vulnerable to defaults

• I will consider where default risk may be concentrated now, and describe some of the gaps in data and supervision

MORTGAGE DEFAULT RISK TODAY