The current wave of foreclosures is taking a very real toll on families and their communities, no place more so than in predominantly minority communities, where subprime loans were particularly common. The U.S. mortgage market has seen rapid innovation in recent years. Changes, such as automated underwriting models, the evolution of the secondary markets, and specialization, have had many positive effects.
Some changes in practices, however, have not been so salutary. Abusive loans that strip borrowers' equity or cause them to lose their homes should not be tolerated.