February 7th, 2011
Econintersect: The CMI (Consumer Metrics Institute) has estimated that some of the mortgage payments not made when a mortgagor is defaulting end up as consumer spending. The current levels of default and foreclosure activity has led CMI to estimate that $90 billion a year is no longer being paid to lenders by defaulting home owners. Follow up:
Follow up:Of this $90 billion, between 25% and 50% is being spent, CMI estimates. This would account for 2-4% of current consumer spending on discretionary consumer durable goods.
Source: GEI Analysis