The resulting real estate bubble reached its peak in the southwestern states of Nevada and New Mexico, and in parts of California. In those states, low-income Hispanics bought homes late in the bubble and lost much of their family wealth once the bubble burst in 2007.
Nationally, the decline in housing values prompted spending cutbacks by millions of homeowners, precipitating a national recession that was the Wall Street meltdown worsened — a collapse brought on by the financial sector’s realization of how many mortgages were failing.
The new announcements are being packaged by the White House as a political response to GOP opposition in Congress, said White House communications director Daniel Pfieffer.
The mortgage announcement “begins an effort [dubbed] ‘We can’t wait,’ where the administration will be taking and highlighting a series of administration actions to show we’re doing everything we can do to get the economy moving,” he said Monday morning.