September 20, 2007

Abstract: (Angus Reid Global Monitor) - Many people in the United States think lending institutions are mainly responsible for the current crisis involving the real estate market in the country, according to a poll by Hart/Newhouse released by the Wall Street Journal and NBC News. 48 per cent of respondents think mortgage lenders are to blame for giving money to people who may not be able to pay back.

(Angus Reid Global Monitor) - Many people in the United States think lending institutions are mainly responsible for the current crisis involving the real estate market in the country, according to a poll by Hart/Newhouse released by the Wall Street Journal and NBC News. 48 per cent of respondents think mortgage lenders are to blame for giving money to people who may not be able to pay back.

Conversely, 27 per cent of respondents think homeowners are liable for taking money from lenders knowing they might not be able to pay it back, while 22 per cent believe both lenders and homeowners are equally responsible.

When asked whether the government should take steps to stop foreclosures, 59 per cent of respondents reject any involvement from the current federal administration. Conversely, 35 per cent of respondents call for an intervention.

Recent defaults on so-called subprime mortgages—credit given to high-risk borrowers—have caused volatility in domestic and financial markets and raised concerns that the U.S. economy could fall into a recession by the end of this year.

On Aug. 31, U.S. president George W. Bush refuted calls for government intervention in favour of affected homeowners, saying, "The government’s got a role to play. But it is limited. A federal bailout of lenders would only encourage a recurrence of the problem." Bush also played down the effect of the debt crisis on the overall economy, stating, "The recent disturbances in the subprime mortgage industry are modest, they’re modest in relation to the size of our economy."

On Sept. 18, the U.S. Federal Reserve announced that interest rates in the U.S. would be cut by half a percentage point.

Polling Data

As you may know, some homeowners across the country who took out adjustable rate mortgages are having difficulty making their monthly mortgage payments and are facing foreclosure on their homes now that their interest rates have increased. Foreclosure is when a bank sells or repossesses someone’s home because they have failed to keep up with mortgage payments. Is it the role of the federal government to take steps to ensure that these people’s homes are not foreclosed upon, or is this not the role of the federal government?

Is	35%
Is not	59%
Unsure	6%

Thinking some more about this situation, who do you think is more to blame: the homeowners who took out loans that they may not be able to pay back, or the mortgage lenders who loaned the money to people who may not be able to pay it back?

 

Homeowners	27%
Lenders	48%
Both Equally	22%
Neither	1%
Unsure	2%

Source: Hart/Newhouse / The Wall Street Journal / NBC News
Methodology: Telephone interviews with 1,008 American adults, conducted from Sept. 7 to Sept. 10, 2007. Margin of error is 3.1 per cent.