McMansions weren’t the problem

Contrary to the popular narrative, most foreclosures were not on sprawling “McMansions” but rather on modest properties that were typically valued significantly below area median values at origination.

One of the key findings from Dreams Deferred: Impacts and Characteristics of the California Foreclosure Crisis, a report by the Center for Responsible Lending. You can also download the full report [PDF] or download the executive summary [PDF].

Another quote from the report, which explains why homeownership is so important:

Homeownership has been the primary source of economic mobility and financial security in this country, as home equity is often tapped to start a new business, pay for higher education and secure retirement.