What ever happened to 'skin in the game'?

  • By 2010, 31 percent of all mortgage defaults were voluntary 'strategic defaults.'
  • Pre-purchase counseling is a primary reason down payment assistance loans have performed well over time.
  • 64 percent of first-timers purchase a home because they want to own a home of their own.

Seven years ago, the Wall Street maxim, having “skin in the game,” became a popular explanation for the devastation of the America’s system of housing finance. Following the subprime meltdown and the beginning of a wave of foreclosures that would eventually drive more than 9 million families from their homes, desperate policy-makers sought simple explanations like “skin in the game” to explain unprecedented and frightening events.