Submitted by Prof. Samuel D. Bornstein (not verified) on December 4, 2008 - 1:59pm.
I would like to bring to your attention the results of a national survey that provides stunning and compelling evidence that the Self-Employed and Micro-Businesses have a significant portion of the "toxic" mortgages and hold the key to a solution to the Mortgage Foreclosure Crisis. The results of this survey highlight the fact that small business should be addressed to mitigate the foreclosures and losses on the defaulting “Troubled Assets” in the TARP and Fannie Mae and Freddie Mac. These mortgages account for more than 50% of the losses in the Fannie and Freddie portfolios.
The National Association for the Self-Employed (NASE) ran the survey, which I created, and issued a Press Release dated Nov. 21, 2008.
The NASE survey confirmed my research that a significant number of small businesses are at-risk of mortgage default due to the fact that they have “toxic” mortgages such as Alt-A, Alt-A ARMs, Option ARMs, Interest-Only, etc. These risky mortgages are expected to default in the upcoming "resets" that are to begin in 4th Quarter 2008 and continue through 2012.
I presented the NASE survey results to the attention of various Congressional Committees who have expressed interest in these findings. I believe that these survey results may have merit in Treasury's initiatives to mitigate the foreclosure crisis. These results impact the two main concerns of Foreclosures and Unemployment.
On April 16, 2008, I testified at a hearing before Senator John F. Kerry's US Senate Committee on Small Business and Entrepreneurship. I testified that there was a connection between small business and the Subprime Mortgage Crisis. In order to confirm my research, I was able to gain the support of NASE to run my survey.
The Press Release and my Commentary on the NASE survey appears on their website at www.nase.org. Please read my Commentary first.
I would appreciate if you would review the attachments and consider this topic for your attention.
Thank you,
Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Email: bornsteinsong@aol.com
NASE Survey: 3.7 million Self-Employed Hold ALT-A Mortgages
I would like to bring to your attention the results of a national survey that provides stunning and compelling evidence that the Self-Employed and Micro-Businesses have a significant portion of the "toxic" mortgages and hold the key to a solution to the Mortgage Foreclosure Crisis. The results of this survey highlight the fact that small business should be addressed to mitigate the foreclosures and losses on the defaulting “Troubled Assets” in the TARP and Fannie Mae and Freddie Mac. These mortgages account for more than 50% of the losses in the Fannie and Freddie portfolios.
The National Association for the Self-Employed (NASE) ran the survey, which I created, and issued a Press Release dated Nov. 21, 2008.
The NASE survey confirmed my research that a significant number of small businesses are at-risk of mortgage default due to the fact that they have “toxic” mortgages such as Alt-A, Alt-A ARMs, Option ARMs, Interest-Only, etc. These risky mortgages are expected to default in the upcoming "resets" that are to begin in 4th Quarter 2008 and continue through 2012.
I presented the NASE survey results to the attention of various Congressional Committees who have expressed interest in these findings. I believe that these survey results may have merit in Treasury's initiatives to mitigate the foreclosure crisis. These results impact the two main concerns of Foreclosures and Unemployment.
On April 16, 2008, I testified at a hearing before Senator John F. Kerry's US Senate Committee on Small Business and Entrepreneurship. I testified that there was a connection between small business and the Subprime Mortgage Crisis. In order to confirm my research, I was able to gain the support of NASE to run my survey.
The Press Release and my Commentary on the NASE survey appears on their website at www.nase.org. Please read my Commentary first.
I would appreciate if you would review the attachments and consider this topic for your attention.
Thank you,
Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Email: bornsteinsong@aol.com