How much damage to the financial system should we expect from what is now commonly called the foreclosure morass, the developing scandal involving document robo-signing (and robo-dockets), completely messed up mortgage paperwork and highly publicized inquiries into accusations of systematic and deliberate misbehavior by banks? The damage to banks’ reputation is immeasurable. They have undermined property rights — the ability to establish clear title is a founding idea of the American republic. They have mistreated customers in a completely unacceptable manner. If people doubted the need for a new consumer protection agency dealing with financial products — and the importance of having a clear-thinking reformer like Elizabeth Warren at its head — they have presumably been silenced by recent events. (If you need to get up to speed on the basics of this issue, see this series of posts by Mike Konczal.) But what is the cost in terms of additional likely losses to big banks? The likely size and nature of these are leading to exactly the kind of systemic risks that the Financial Stability Oversight Council was recently established to anticipate and deal with.
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
Most Popular Articles
Michigan’s Whitmer steps up, signs single-stair reform into law
Gov. Gretchen Whitmer took a big step toward clearing the path for developers to build smaller apartment buildings more affordably. Whitmer signed Michigan’s single-stair legislation into law this week, a green light for developers to build multifamily housing up to six stories more economically, with a single interior exit stairway. Michigan housing advocates say the […]
Jul 22, 2026
-
Mortgage rates hit yearly high as Iran conflict escalates
Jul 23, 2026 -
Berkshire completes Taylor Morrison deal valued at $8.5B enterprise value
Jul 24, 2026 -
New York outflows reshape housing demand in Texas and Florida
Jul 24, 2026 -
Home sales are positive but higher rates slowing demand
Jul 25, 2026 -
Don’t fall for a fake foreclosure crisis
Jul 24, 2026
Latest Articles
Gaining that local edge to outperform competition amid market consolidation
Independent brokerages can compete in a consolidating market by specializing in defined neighborhoods and systematizing local content from listings. Adding AEO alongside SEO improves visibility in AI search, while repeatable frameworks help scale consistency across agents.
-
America’s accidental landlords: The hidden consequence of the mortgage lock-in effect
-
New York City posts notice of new tax levy to pied-a-terre owners
-
Lot demand shifts to terms and timing at Forestar, Five Point
-
Ruth Reffkin launches Compass real estate team in NYC
-
Agent movement stalls as retention takes hold in Q2
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio