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William Reed writes for HVPress.com:

The recent rise in mortgage foreclosures, fueled by subprime lending, seriously threatens stability and revitalization across America. With interest rates at historic lows during the recent real estate boom investors poured trillions of dollars into mortgage securities in search of higher-yielding assets. Now, possibilities of a national recession loom large. Mortgages form the financial underpinnings of the nationís housing market and allowed over two-thirds of households to own their own homes. The flush real estate times of the 1990ís and 21st Century allowed many homeowners to buy homes or tap into the equity of their properties which drove home prices up. Now, mortgage defaults and foreclosures are rising and homeownership rates falling. As many as 2.2 million American homeowners are at risk of defaulting on loans and losing their homes because they cannot afford to repay or refinance their loans because home prices are falling. Traditionally, banks made and held home loans with money from local deposits. But over the last 30 years, financing for mortgages has increas-ingly shifted to investors in the bond market. High-cost subprime mortgages, loans to people with blemished credit records or little experience with debt have grown. Subprime borrowers (below "A" rated credit) are charged a higher fee to compensate for their greater risk of delinquency and higher costs of loan servicing and collection. The majority of subprime loans are refinance loans and ranged from 74 percent of subprime loans in 1996 to 65 percent of subprime loans in 2000...