SEPTEMBER 2011

The
Wall Street
WRECKING
What Foreclosures
BALL Are Costing Los Angeles
Neighborhoods

Alliance of Californians for Community Empowerment (ACCE) is a multi-racial,

democratic, non-profit community organization building power in low to
moderate income neighborhoods to stand and fight for social, economic and
racial justice. ACCE has chapters in eleven counties across the State of California.

The California Reinvestment Coalition (CRC) advocates for fair and equal access
-income communities
Alliance of Californians for Community Empowerment (ACCE) is a multi-racial,
and communities of color. CRC is a membership organization of over 300
democratic, non-profit community organization building power in low to
nonprofits and public agencies including housing counselors, consumer
moderate income neighborhoods to stand and fight for social, economic and
advocates, community organizations, legal service providers, and economic
racial justice. ACCE has chapters in eleven counties across the State of California.
development practitioners. Founded in 1986, CRC advocates with policymakers

- particularly in
The California Reinvestment Coalition (CRC) advocates for fair and equal access
lending, financial products and services, and investments- to California's low-
-income communities
income communities and communities of color.
and communities of color. CRC is a membership organization of over 300

nonprofits and public agencies including housing counselors, consumer
advocates, community organizations, legal service providers, and economic
development practitioners. Founded in 1986, CRC advocates with policymakers
- particularly in
lending, financial products and services, and investments- to California's low-

income communities and communities of color.

As Wall Street Banks continue to

foreclose on our neighborhoods,
the costs to taxpayers add up

Wall Street banks shattered our economy and left our communities to pick up the pieces.

While it was Wall St toxic lending practices and recklessness that created the housing crisis, it is
California homeowners and taxpayers that are paying the price. The housing market is where the
economic crisis began and without immediate action, we are facing a multi-billion dollar hit to our
neighborhoods that is undermining the economic recovery we desperately need.

The Picture in California:

x There have been 1.2 million foreclosures in the state since 2008, with the number expected to
exceed 2 million by the end of 2012.i
x California is the hardest hit of all fifty states, accounting for one in every five foreclosures in the
US.ii
x The 2 million foreclosures expected through 2012 are estimated to cost homeowners, property
taxes, and local governments $650 billion statewide.iii
x Almost a third of California homeowners with a mortgage owe more on their mortgages than
their homes are worth.iv

Los Angeles by the Numbers:

x Foreclosures harm all homeowners: Overall, Los Angeles homeowners are estimated to lose
$78.8 billion in home values as a direct result of the 200,000 foreclosures for 2008-2012.
x Foreclosures erode the property tax base and impact services for all: Property tax revenue
losses are estimated to be $481 million in the wake of the foreclosure crisis.
x Foreclosures cost local governments: The typical foreclosure costs local governments more
than $19,229 for increased costs of safety inspections, police and fire calls, and trash removal,
and maintenance. In Los Angeles, theses costs are estimated to be $1.2 billion.
x Foreclosures undermine an economic recovery and cost jobs: Los Angeles has 79,029
homeowners underwater by $7.3 billion. If banks wrote down those mortgages, it could pump
$780 million into local economy and spur 11,353 jobs.

Top Banks Foreclosing in California

Top Banks Foreclosing on Californians:
JP Morgan Chase
x Bank of America
x Wells Fargo Bank
x JP Morgan Chase
x Citigroup
x

The Wall Street WRECKING BALL

Foreclosures have a clear impact on the families losing their homes, but the
costs hit all of us.

Foreclosures harm the value of all homes within a neighborhood.
When a home falls into foreclosure, it affects the property value of
the foreclosed home as well as the values of other homes in the
A July 2011 Pew Research
neighborhood. It is estimated that homes in foreclosure experience
analysis found the median wealth
a 22% decline in value.v That means the impact of the 200,000
among Hispanic households fell
foreclosures estimated for the period 2008 through 2012 will be
more than $26 billion in lost home value in communities across Los
by 66% and among African-
Angeles.vi
American households fell by 53%

after the bursting of the housing
But the impact to foreclosed properties is just the tip of the iceberg.
market bubble in 2006 and the
It is conservatively estimated that each foreclosed property will
recession that followed.
cause the value of neighboring homes within an eighth of a mile to
vii
drop 0.9%. In Los Angeles, impacted homeowners could
experience property devaluation of $53 billion.viii

Overall, Los Angeles homeowners are estimated to lose $78.8 billion in home values as a direct result of
the foreclosure crisis. With lower home values, families have less home equity to use to fund
retirement, pay tuition, grow their small businesses, or pay medical bills. For the average pre-retiree, at
least two-thirds of their total assets are tied up in their home.ix

Foreclosures erode local tax bases and revenues, impacting services for everyone.
As housing values decline, state and local governments also feel the burden. As property values drop an
estimated $78.8 billion, Los Angeles communities could lose as much as $481 million in property tax
revenue.x The reduction in property values has decimated the tax bases that support state and local
budgets.

Foreclosures require increased police and other services, further draining public budgets.
Foreclosure-related costs for Los Angeles local governments are estimated to be $1.2 billion.xi Local
government agencies have to spend money and staff time on blighted foreclosed properties, providing
maintenance, inspections, trash removal, increased public safety calls, and other code enforcement
services. For example, violent crime increases 2.33% for every 1% increase in foreclosures.xii Additional
foreclosure costs include sheriff evictions, providing transitional assistance and shelters, and other
safety net support to families.

Responding to these needs is a gargantuan task that involves multiple agencies and multiple levels of
local government. The costs to taxpayers add up very quickly to $19,229 per foreclosure and potentially
much higher.xiii That means at a time when local governments are contemplating slashing services, they


A National League of Cities survey found that foreclosures and the declining housing market are among
the leading causes of fiscal budget crises. As a result, cities are hard-pressed to pay for services like
libraries, parks, police and fire.xiv

A breakdown by zip code can be found in attached chart.

SEPTEMBER 2011

Foreclosures undermine an economic recovery and cost jobs.

Another alarming impact of the housing crisis is the overhang of underwater mortgage debt, which is
now one of the primary drags on economic recovery. Negative equity, often referred to as

-- that means almost a
third of homeowners are underwater on their mortgages.

California homeowners are underwater by $200 billion as a result of the Wall Street-created housing
crisis. That means as homeowners overpay on their mortgages, Wall Street devours $20 billion annually.
This is money that would otherwise go into our economy in the form of consumer spending if banks
wrote down D means banks
would write down mortgages to market value and refinance homeowners into 30-year fixed loans at
current market interest rates.

x California has over 2 million homes underwater (30% of all mortgages) by $200 billion.
x Fixing the underwater crisis by writing down mortgages would save California homeowners
$810 every month and pump $20 billion annually into local economy. xv
x With the extra $810 per month, homeowners could start spending again, making purchases they
have been putting off. The increase in consumer demand would in turn help spur 300,000 jobs
in California.
x Los Angeles has 79,029 homeowners underwater (27%) by $7.3 billion. If banks wrote down
those mortgages, it could pump $768 million into local economy and spur 11,353 jobs. xvi

Fixing Underwater Mortgages Would Spur Economic Recovery

The Wall Street WRECKING BALL

/olutions:

Wall Street Should Pay Their Fair Share: The banks collapsed the economy and created the housing
/olutions:
crisis with their recklessness and predatory lending practices. Currently, taxpayers are being forced to
Wall Street Should Pay Their Fair Share: The banks collapsed the economy and created the housing
absorb the losses to home values and the costs to local governments. California should institute a
crisis with their recklessness and predatory lending practices. Currently, taxpayers are being forced to
Foreclosure Fee, making the banks pay $10,000 to $20,000 per foreclosure to partially reimburse local
absorb the losses to home values and the costs to local governments. California should institute a
and state governments for the costs of this crisis. This fee would raise roughly $2 billion to $4 billion
Foreclosure Fee, making the banks pay $10,000 to $20,000 per foreclosure to partially reimburse local
over the next year.
and state governments for the costs of this crisis. This fee would raise roughly $2 billion to $4 billion

over the next year.
California Needs a Strong AG Settlement. The current multi-state Attorneys General investigation into
signing and other servicing abuses needs to provide meaningful relief for California families and
robo-
California Needs a Strong AG Settlement. The current multi-
state Attorneys General investigation into
neighborhoods. Any agreement must include 1) a large settlement award that is commensurate with the
robo-
signing and other servicing abuses needs to provide meaningful relief for California families and
harm caused by bank practices; 2) limited releases of liabilities so banks are not let off the hook for
neighborhoods. Any agreement must include 1) a large settlement award that is commensurate with the
uninvestigated claims; 3) mandated principal reductions that are fairly distributed to communities
harm caused by bank practices; 2) limited releases of liabilities so banks are not let off the hook for
hardest hit by predatory lending and foreclosure; and 4) restitution to homeowners who lost their
uninvestigated claims; 3) mandated principal reductions that are fairly distributed to communities
properties due to bank's irresponsible and illegal foreclosure practices.
hardest hit by predatory lending and foreclosure; and 4) restitution to homeowners who lost their
properties due to bank's irresponsible and illegal foreclosure practices.
Wall Street Banks Must Stop Preventable Foreclosures: Reducing foreclosures is good for families,
communities and the economy. Banks should be subject to court-based mandatory mediation programs
Wall Street Banks Must Stop Preventable Foreclosures: Reducing foreclosures is good for families,
to give homeowners a fair shot at getting a loan modification. Banks must also be forced to fully end the
communities and the economy. Banks should be subject to court-based mandatory mediation programs
dual track process, a controversial practice whereby homeowners negotiating a loan modification in
to give homeowners a fair shot at getting a loan modification. Banks must also be forced to fully end the
good faith find that the bank has nonetheless proceeded with foreclosure and taken their homes.
dual track process, a controversial practice whereby homeowners negotiating a loan modification in
good faith find that the bank has nonetheless proceeded with foreclosure and taken their homes.
Wall Street Must Clean Up and Pay for Foreclosure-Related Blight: Vacant foreclosures unattended by
banks have become a magnet for blight and illicit activity that further destabilizes neighborhoods
Wall Street Must Clean Up and Pay for Foreclosure-Related Blight: Vacant foreclosures unattended by
already decimated by foreclosures. Banks must maintain and pay for the cleanup of blighted, vacant
banks have become a magnet for blight and illicit activity that further destabilizes neighborhoods
homes in neighborhoods.
already decimated by foreclosures. Banks must maintain and pay for the cleanup of blighted, vacant
homes in neighborhoods.
Who is responsible for this mess?
t^ pushed
Who is responsible for this mess?
homeowners into high-cost loans they couldn't afford and then promptly cashed out by selling the loans
t^ pushed
to investment banks that turned them into mortgage-
backed securities (MBS). This widespread practice,
homeowners into high-cost loans they couldn't afford and then promptly cashed out by selling the loans
which started among subprime lenders but was quickly adopted by the big banks, created and inflated
to investment banks that turned them into mortgage-backed securities (MBS). This widespread practice,
the housing bubble. Bankers and brokers raked in mega-bonus checks making homeowners vulnerable.
which started among subprime lenders but was quickly adopted by the big banks, created and inflated
When W^
the housing bubble. Bankers and brokers raked in mega-bonus checks making homeowners vulnerable.
bonuses but Californians lost billions in savings in their homes.
When W^

bonuses but Californians lost billions in savings in their homes.
t^-documented and continues to have devastating consequences as they
use flawed-and, in some cases, fraudulent--procedures to flood the housing market with foreclosures
t^-documented and continues to have devastating consequences as they
that are throwing hundreds of thousands of California families out of their homes. The total disregard
use flawed-and, in some cases, fraudulent-
-procedures to flood the housing market with foreclosures
for mortgage laws and standards is the latest example of a predatory industry that continues to
that are throwing hundreds of thousands of California families out of their homes. The total disregard
devastate families already hit hard by the economic crisis.
for mortgage laws and standards is the latest example of a predatory industry that continues to

devastate families already hit hard by the economic crisis.
Currently, the five largest mortgage companies in the U.S. are under investigation by all 50 state
Attorneys Generals for foreclosure fraud. They may be on the hook for more than $20 billion in
Currently, the five largest mortgage companies in the U.S. are under investigation by all 50 state
damages. However, this amount is not nearly enough to compensate communities for the harm that
Attorneys Generals for foreclosure fraud. They may be on the hook for more than $20 billion in
has been done, as this report documents.
damages. However, this amount is not nearly enough to compensate communities for the harm that
has been done, as this report documents.

Who is Responsible for this Mess?

SEPTEMBER 2011

Who is Responsible
for this Mess?
Who Is Responsible for this Mess?
t^y lending practices have devastated California. Lenders pushed homeowners into high-cost
tt^
taxpayers and got to keep their bonuses but Californians lost billions in savings in their homes.

BANK OF AMERICA

CEO Brian Moynihan

Federal taxpayer bailout funds received:
Profits since bailout (2009-2010):
2010 CEO Brian Moynihan bonus:
2010 CEO Brian Moynihan total pay:
2010 bonuses and compensation:

xvii

$230.1 billion
$4.0 billion
xix
$9.05 million
xx
$10 million
$35.1 billion

xviii

xxi

$100.7 billion
$29.1 billion
xxiv
$17.5 million
$28.4 billion

xxv

$43.7 billion
$24.6 billion
xxvii
$14.3 million
xxviii
$17.1 million
$27.2 billion

xxix

$414.9 billion
$9.0 billion
xxxi
10.8 million
$24.4 billion

JP MORGAN CHASE

CEO Jamie Dimon

Federal taxpayer bailout funds received:

Profits since bailout (2009-2010):
xxiii
2009 CEO Jamie Dimon pay:
2010 bonuses and compensation:

xxii

WELLS FARGO

CEO John Stumpf

Federal taxpayer bailout funds received:

Profits since bailout (2009-2010):
2010 CEO John Stumpf bonus:
2010 CEO John Stumpf total pay:
2010 bonuses and compensation:

xxvi

CITIGROUP

CEO Vikram Pandit

Federal taxpayer bailout funds received:
Profits since bailout (2009-2010):
2008-2010 CEO Vikram Pandit pay:
2010 bonuses and compensation:

xxx

GOLDMAN SACHS

CEO Lloyd Blankfein

Federal taxpayer bailout funds received:
Profits since bailout (2009-2010):
2010 CEO Lloyd Blankfein bonus:
2010 CEO Lloyd Blankfein total pay:
2010 bonuses and compensation:

xxxii

xxxiii

$53.4 billion
$21.7 billion
xxxiv
$12.6 million
xxxv
$13.2 million
$15.4 billion

MORGAN STANLEY

CEO James Gorman

Federal taxpayer bailout funds received:
Profits since bailout (2009-2010):
2009 CEO James Gorman pay:
2010 bonuses and compensation:

xxxvi

xxxvii

$36.3 billion
$6.0 billion
xxxviii
$15.0 million
$16.0 billion

The Wall Street WRECKING BALL

The Cost of the Foreclosure Crisis in Los Angeles by Zip Code (2008-2012)

Zip Code

Foreclosures
2008-12

Foreclosed Home
Value Loss

Impacted Homes
Value Loss

Total Home Value

Loss

Property Tax
Loss

Local Gov't Cost

90001

3,125

$404,954,409

$828,315,837

$1,233,270,246

$7,522,949

$20,044,310

90002

4,006

$519,133,771

$1,061,864,532

$1,580,998,303

$9,644,090

$26,905,217

90003

5,929

$768,358,417

$1,571,642,217

$2,340,000,634

$14,274,004

$37,938,817

90004

1,143

$148,109,166

$302,950,566

$451,059,732

$2,751,464

$6,987,819

90005

1,045

$135,485,931

$277,130,313

$412,616,244

$2,516,959

$5,291,821

90006

1,612

$208,866,583

$427,227,102

$636,093,685

$3,880,171

$10,368,277

90007

939

$121,696,278

$248,924,205

$370,620,483

$2,260,785

$5,341,816

90008

1,419

$183,905,238

$376,169,805

$560,075,043

$3,416,458

$6,964,744

90010

96

$12,493,633

$25,555,158

$38,048,791

$232,098

$423,038

90011

5,701

$738,886,922

$1,511,359,614

$2,250,246,536

$13,726,504

$32,077,818

90012

834

$108,062,148

$221,036,211

$329,098,359

$2,007,500

$5,434,115

90013

469

$60,783,338

$124,329,555

$185,112,893

$1,129,189

$3,222,780

90014

302

$39,191,645

$80,164,728

$119,356,373

$728,074

$2,042,120

90015

720

$93,339,360

$190,921,419

$284,260,779

$1,733,991

$4,707,259

90016

2,737

$354,772,515

$725,671,053

$1,080,443,568

$6,590,706

$15,813,930

90017

469

$60,809,258

$124,382,574

$185,191,832

$1,129,670

$3,238,164

90018

2,634

$341,397,588

$698,313,249

$1,039,710,837

$6,342,236

$15,702,401

90019

2,573

$333,414,105

$681,983,397

$1,015,397,502

$6,193,925

$13,514,141

90020

935

$121,177,870

$247,863,825

$369,041,695

$2,251,154

$6,195,584

90021

246

$31,830,251

$65,107,332

$96,937,583

$591,319

$819,155

90022

2,266

$293,704,052

$600,758,289

$894,462,341

$5,456,220

$11,871,985

90023

1,469

$190,437,179

$389,530,593

$579,967,772

$3,537,803

$8,126,175

90024

738

$95,698,117

$195,746,148

$291,444,265

$1,777,810

$3,192,014

90025

804

$104,174,088

$213,083,361

$317,257,449

$1,935,270

$4,049,627

90026

1,833

$237,612,307

$486,025,173

$723,637,480

$4,414,189

$10,418,272

90027

718

$93,054,236

$190,338,210

$283,392,446

$1,728,694

$4,061,165

90028

532

$68,896,423

$140,924,502

$209,820,925

$1,279,908

$2,326,709

90029

618

$80,042,195

$163,722,672

$243,764,867

$1,486,966

$3,661,202

90031

1,332

$172,578,023

$353,000,502

$525,578,525

$3,206,029

$7,764,670

90032

2,219

$287,612,758

$588,298,824

$875,911,582

$5,343,061

$13,979,483

90033

1,321

$171,256,083

$350,296,533

$521,552,616

$3,181,471

$8,245,395

90034

644

$83,463,688

$170,721,180

$254,184,868

$1,550,528

$3,465,066

90035

534

$69,155,627

$141,454,692

$210,610,319

$1,284,723

$1,719,073

90036

471

$60,990,701

$124,753,707

$185,744,408

$1,133,041

$2,103,653

90037

3,555

$460,709,190

$942,359,706

$1,403,068,896

$8,558,720

$20,386,586

90038

389

$50,467,019

$103,227,993

$153,695,012

$937,540

$1,865,213

90039

987

$127,917,174

$261,648,765

$389,565,939

$2,376,352

$5,487,957

90040

383

$49,585,725

$101,425,347

$151,011,072

$921,168

$1,776,760

90041

899

$116,564,039

$238,426,443

$354,990,482

$2,165,442

$4,495,740

90042

2,733

$354,228,186

$724,557,654

$1,078,785,840

$6,580,594

$16,040,832

90043

3,422

$443,523,964

$907,208,109

$1,350,732,073

$8,239,466

$20,048,155

90044

6,591

$854,180,862

$1,747,188,126

$2,601,368,988

$15,868,351

$40,261,680

SEPTEMBER 2011

The Cost of the Foreclosure Crisis in Los Angeles by Zip Code (2008-2012)

Zip Code

Foreclosures
2008-12

Foreclosed Home
Value Loss

Impacted Homes
Value Loss

Total Home Value

Loss

Property Tax
Loss

Local Gov't Cost

90001
90045

3,125
987

$404,954,409
$127,865,333

$828,315,837
$261,542,727

$1,233,270,246
$389,408,060

$7,522,949
$2,375,389

$20,044,310
$6,076,364

90002
90046

4,006
1,338

$519,133,771
$173,433,396

$1,061,864,532
$354,750,129

$1,580,998,303
$528,183,525

$9,644,090
$3,221,920

$26,905,217
$7,433,931

90003
90047

5,929
4,560

$768,358,417
$590,933,279

$1,571,642,217
$1,208,727,162

$2,340,000,634
$1,799,660,441

$14,274,004
$10,977,929

$37,938,817
$28,620,444

90004
90048

1,143
469

$148,109,166
$60,731,497

$302,950,566
$124,223,517

$451,059,732
$184,955,014

$2,751,464
$1,128,226

$6,987,819
$2,234,410

90005
90049

1,045
726

$135,485,931
$94,039,211

$277,130,313
$192,352,932

$412,616,244
$286,392,143

$2,516,959
$1,746,992

$5,291,821
$2,892,042

90006
90056

1,612
492

$208,866,583
$63,738,264

$427,227,102
$130,373,721

$636,093,685
$194,111,985

$3,880,171
$1,184,083

$10,368,277
$2,345,938

90007
90057

939
575

$121,696,278
$74,495,230

$248,924,205
$152,376,606

$370,620,483
$226,871,836

$2,260,785
$1,383,918

$5,341,816
$3,872,721

90008
90058

1,419
166

$183,905,238
$21,539,852

$376,169,805
$44,058,789

$560,075,043
$65,598,641

$3,416,458
$400,152

$6,964,744
$946,067

90010
90059

96
3,689

$12,493,633
$478,101,778

$25,555,158
$977,935,455

$38,048,791
$1,456,037,233

$232,098
$8,881,827

$423,038
$25,997,608

90011
90061

5,701
1,931

$738,886,922
$250,313,303

$1,511,359,614
$512,004,483

$2,250,246,536
$762,317,786

$13,726,504
$4,650,138

$32,077,818
$12,260,410

90012
90062

834
2,524

$108,062,148
$327,063,607

$221,036,211
$668,993,742

$329,098,359
$996,057,349

$2,007,500
$6,075,950

$5,434,115
$15,225,522

90013
90063

469
2,531

$60,783,338
$328,074,503

$124,329,555
$671,061,483

$185,112,893
$999,135,986

$1,129,189
$6,094,730

$3,222,780
$15,798,546

90014
90064

302
429

$39,191,645
$55,651,099

$80,164,728
$113,831,793

$119,356,373
$169,482,892

$728,074
$1,033,846

$2,042,120
$2,326,709

90015
90065

720
1,940

$93,339,360
$251,427,880

$190,921,419
$514,284,300

$284,260,779
$765,712,180

$1,733,991
$4,670,844

$4,707,259
$12,041,200

90016
90066

2,737
791

$354,772,515
$102,567,023

$725,671,053
$209,796,183

$1,080,443,568
$312,363,206

$6,590,706
$1,905,416

$15,813,930
$4,418,824

90017
90067

469
304

$60,809,258
$39,399,008

$124,382,574
$80,588,880

$185,191,832
$119,987,888

$1,129,670
$731,926

$3,238,164
$1,699,844

90018
90068

2,634
1,082

$341,397,588
$140,255,284

$698,313,249
$286,885,809

$1,039,710,837
$427,141,093

$6,342,236
$2,605,561

$15,702,401
$6,303,266

90019
90069

2,573
1,168

$333,414,105
$151,426,977

$681,983,397
$309,736,998

$1,015,397,502
$461,163,975

$6,193,925
$2,813,100

$13,514,141
$6,330,187

90020
90071

935
31

$121,177,870
$4,069,503

$247,863,825
$8,323,983

$369,041,695
$12,393,486

$2,251,154
$75,600

$6,195,584
$276,898

90021
90077

246
316

$31,830,251
$41,006,073

$65,107,332
$83,876,058

$96,937,583
$124,882,131

$591,319
$761,781

$819,155
$1,838,292

90022
90089

2,266
1

$293,704,052
$129,602

$600,758,289
$265,095

$894,462,341
$394,697

$5,456,220
$2,408

$11,871,985
$19,229

90023
90094

1,469
399

$190,437,179
$51,659,357

$389,530,593
$105,666,867

$579,967,772
$157,326,224

$3,537,803
$959,690

$8,126,175
$2,411,317

90024
90095

738
3

$95,698,117
$336,965

$195,746,148
$689,247

$291,444,265
$1,026,212

$1,777,810
$6,260

$3,192,014
$0

90025
90210

804
581

$104,174,088
$75,298,762

$213,083,361
$154,020,195

$317,257,449
$229,318,957

$1,935,270
$1,398,846

$4,049,627
$2,861,275

90026
90211

1,833
212

$237,612,307
$27,501,544

$486,025,173
$56,253,159

$723,637,480
$83,754,703

$4,414,189
$510,904

$10,418,272
$1,088,361

90027
90212

718
193

$93,054,236
$24,987,266

$190,338,210
$51,110,316

$283,392,446
$76,097,582

$1,728,694
$464,195

$4,061,165
$480,725

90028
90230

532
1,056

$68,896,423
$136,885,632

$140,924,502
$279,993,339

$209,820,925
$416,878,971

$1,279,908
$2,542,962

$2,326,709
$5,591,793

90029
90232

618
247

$80,042,195
$31,985,774

$163,722,672
$65,425,446

$243,764,867
$97,411,220

$1,486,966
$594,208

$3,661,202
$1,211,427

90031
90245

1,332
225

$172,578,023
$29,186,370

$353,000,502
$59,699,394

$525,578,525
$88,885,764

$3,206,029
$542,203

$7,764,670
$1,053,749

90032
90247

2,219
2,059

$287,612,758
$266,850,518

$588,298,824
$545,830,605

$875,911,582
$812,681,123

$5,343,061
$4,957,355

$13,979,483
$12,710,369

90033
90248

1,321
368

$171,256,083
$47,745,377

$350,296,533
$97,660,998

$521,552,616
$145,406,375

$3,181,471
$886,979

$8,245,395
$2,045,966

90034
90272

644
400

$83,463,688
$51,866,720

$170,721,180
$106,091,019

$254,184,868
$157,957,739

$1,550,528
$963,542

$3,465,066
$1,926,746

90035
90290

534
242

$69,155,627
$31,337,764

$141,454,692
$64,099,971

$210,610,319
$95,437,735

$1,284,723
$582,170

$1,719,073
$999,908

90036
90291

471
599

$60,990,701
$77,605,678

$124,753,707
$158,738,886

$185,744,408
$236,344,564

$1,133,041
$1,441,702

$2,103,653
$2,380,550

90037
90292

3,555
828

$460,709,190
$107,336,376

$942,359,706
$219,551,679

$1,403,068,896
$326,888,055

$8,558,720
$1,994,017

$20,386,586
$4,472,665

90038
90293

389
545

$50,467,019
$70,684,931

$103,227,993
$144,582,813

$153,695,012
$215,267,744

$937,540
$1,313,133

$1,865,213
$3,272,776

90039
90302

987
1,958

$127,917,174
$253,734,796

$261,648,765
$519,002,991

$389,565,939
$772,737,787

$2,376,352
$4,713,700

$5,487,957
$12,648,836

90040
90402

383
171

$49,585,725
$22,213,783

$101,425,347
$45,437,283

$151,011,072
$67,651,066

$921,168
$412,672

$1,776,760
$980,679

90041
90501

899
1,105

$116,564,039
$143,210,210

$238,426,443
$292,929,975

$354,990,482
$436,140,185

$2,165,442
$2,660,455

$4,495,740
$7,053,197

90042
90502

2,733
1,558

$354,228,186
$201,919,916

$724,557,654
$413,018,010

$1,078,785,840
$614,937,926

$6,580,594
$3,751,121

$16,040,832
$9,641,421

90043
90710

3,422
1,119

$443,523,964
$145,050,558

$907,208,109
$296,694,324

$1,350,732,073
$441,744,882

$8,239,466
$2,694,644

$20,048,155
$6,134,051

90044
90717

6,591
541

$854,180,862
$70,114,682

$1,747,188,126
$143,416,395

$2,601,368,988
$213,531,077

$15,868,351
$1,302,540

$40,261,680
$2,615,144

90731

1,948

$252,412,855

$516,299,022

$768,711,877

$4,689,142

$11,395,105

90732

1,002

$129,809,363

$265,519,152

$395,328,515

$2,411,504

$5,930,224

90744

1,962

$254,279,124

$520,116,390

$774,395,514

$4,723,813

$12,160,420

90810

2,044

$264,958,329

$541,960,218

$806,918,547

$4,922,203

$13,148,790

91040

1,328

$172,111,456

$352,046,160

$524,157,616

$3,197,361

$7,918,502

The Wall Street WRECKING BALL

The Cost of the Foreclosure Crisis in Los Angeles by Zip Code (2008-2012)

Zip Code

Foreclosures
2008-12

Foreclosed Home
Value Loss

Impacted Homes
Value Loss

Total Home Value

Loss

Property Tax
Loss

Local Gov't Cost

90001
91042

3,125
1,726

$404,954,409
$223,641,211

$828,315,837
$457,447,932

$1,233,270,246
$681,089,143

$7,522,949
$4,154,644

$20,044,310
$9,422,210

90002
91214

4,006
1,214

$519,133,771
$157,336,828

$1,061,864,532
$321,825,330

$1,580,998,303
$479,162,158

$9,644,090
$2,922,889

$26,905,217
$5,518,723

90003
91303

5,929
1,066

$768,358,417
$138,103,891

$1,571,642,217
$282,485,232

$2,340,000,634
$420,589,123

$14,274,004
$2,565,594

$37,938,817
$6,907,057

90004
91304

1,143
2,444

$148,109,166
$316,747,288

$302,950,566
$647,892,180

$451,059,732
$964,639,468

$2,751,464
$5,884,301

$6,987,819
$14,840,942

90005
91306

1,045
3,278

$135,485,931
$424,783,515

$277,130,313
$868,875,372

$412,616,244
$1,293,658,887

$2,516,959
$7,891,319

$5,291,821
$20,763,474

90006
91307

1,612
1,332

$208,866,583
$172,655,784

$427,227,102
$353,159,559

$636,093,685
$525,815,343

$3,880,171
$3,207,474

$10,368,277
$6,918,594

90007
91311

939
2,242

$121,696,278
$290,567,684

$248,924,205
$594,342,990

$370,620,483
$884,910,674

$2,260,785
$5,397,955

$5,341,816
$13,875,646

90008
91316

1,419
1,813

$183,905,238
$234,942,506

$376,169,805
$480,564,216

$560,075,043
$715,506,722

$3,416,458
$4,364,591

$6,964,744
$11,083,596

90010
91324

96
1,326

$12,493,633
$171,852,252

$25,555,158
$351,515,970

$38,048,791
$523,368,222

$232,098
$3,192,546

$423,038
$7,407,011

90011
91325

5,701
1,499

$738,886,922
$194,299,318

$1,511,359,614
$397,430,424

$2,250,246,536
$591,729,742

$13,726,504
$3,609,551

$32,077,818
$8,360,769

90012
91326

834
1,676

$108,062,148
$217,187,032

$221,036,211
$444,246,201

$329,098,359
$661,433,233

$2,007,500
$4,034,743

$5,434,115
$8,829,957

90013
91331

469
6,049

$60,783,338
$783,962,498

$124,329,555
$1,603,559,655

$185,112,893
$2,387,522,153

$1,129,189
$14,563,885

$3,222,780
$39,219,468

90014
91335

302
4,819

$39,191,645
$624,577,958

$80,164,728
$1,277,545,824

$119,356,373
$1,902,123,782

$728,074
$11,602,955

$2,042,120
$29,558,819

90015
91340

720
1,939

$93,339,360
$251,324,198

$190,921,419
$514,072,224

$284,260,779
$765,396,422

$1,733,991
$4,668,918

$4,707,259
$12,648,836

90016
91342

2,737
7,009

$354,772,515
$908,354,498

$725,671,053
$1,857,997,836

$1,080,443,568
$2,766,352,334

$6,590,706
$16,874,749

$15,813,930
$46,388,040

90017
91343

469
3,788

$60,809,258
$490,958,296

$124,382,574
$1,004,232,879

$185,191,832
$1,495,191,175

$1,129,670
$9,120,666

$3,238,164
$24,974,625

90018
91344

2,634
3,005

$341,397,588
$389,454,010

$698,313,249
$796,610,475

$1,039,710,837
$1,186,064,485

$6,342,236
$7,234,993

$15,702,401
$16,894,599

90019
91345

2,573
1,367

$333,414,105
$177,114,093

$681,983,397
$362,278,827

$1,015,397,502
$539,392,920

$6,193,925
$3,290,297

$13,514,141
$8,549,213

90020
91352

935
2,207

$121,177,870
$285,979,773

$247,863,825
$584,958,627

$369,041,695
$870,938,400

$2,251,154
$5,312,724

$6,195,584
$13,544,908

90021
91356

246
2,037

$31,830,251
$264,025,194

$65,107,332
$540,051,534

$96,937,583
$804,076,728

$591,319
$4,904,868

$819,155
$11,625,853

90022
91364

2,266
1,638

$293,704,052
$212,236,235

$600,758,289
$434,119,572

$894,462,341
$646,355,807

$5,456,220
$3,942,770

$11,871,985
$9,222,228

90023
91367

1,469
2,446

$190,437,179
$317,058,333

$389,530,593
$648,528,408

$579,967,772
$965,586,741

$3,537,803
$5,890,079

$8,126,175
$14,498,666

90024
91401

738
1,365

$95,698,117
$176,880,810

$195,746,148
$361,801,656

$291,444,265
$538,682,466

$1,777,810
$3,285,963

$3,192,014
$7,341,632

90025
91402

804
4,272

$104,174,088
$553,633,824

$213,083,361
$1,132,432,821

$317,257,449
$1,686,066,645

$1,935,270
$10,285,007

$4,049,627
$29,497,286

90026
91403

1,833
1,000

$237,612,307
$129,602,000

$486,025,173
$265,095,000

$723,637,480
$394,697,000

$4,414,189
$2,407,652

$10,418,272
$5,749,471

90027
91405

718
2,162

$93,054,236
$280,147,683

$190,338,210
$573,029,352

$283,392,446
$853,177,035

$1,728,694
$5,204,380

$4,061,165
$13,775,656

90028
91406

532
2,856

$68,896,423
$370,195,153

$140,924,502
$757,217,358

$209,820,925
$1,127,412,511

$1,279,908
$6,877,216

$2,326,709
$18,990,560

90029
91411

618
766

$80,042,195
$99,301,052

$163,722,672
$203,115,789

$243,764,867
$302,416,841

$1,486,966
$1,844,743

$3,661,202
$3,907,333

90031
91423

1,332
1,081

$172,578,023
$140,073,842

$353,000,502
$286,514,676

$525,578,525
$426,588,518

$3,206,029
$2,602,190

$7,764,670
$5,218,751

90032
91436

2,219
479

$287,612,758
$62,131,199

$588,298,824
$127,086,543

$875,911,582
$189,217,742

$5,343,061
$1,154,228

$13,979,483
$1,811,372

90033
91504

1,321
936

$171,256,083
$121,307,472

$350,296,533
$248,128,920

$521,552,616
$369,436,392

$3,181,471
$2,253,562

$8,245,395
$4,284,221

90034
91505

644
921

$83,463,688
$119,415,283

$170,721,180
$244,258,533

$254,184,868
$363,673,816

$1,550,528
$2,218,410

$3,465,066
$5,061,073

90035
91601

534
1,149

$69,155,627
$148,912,698

$141,454,692
$304,594,155

$210,610,319
$453,506,853

$1,284,723
$2,766,392

$1,719,073
$6,926,286

90036
91602

471
654

$60,990,701
$84,785,628

$124,753,707
$173,425,149

$185,744,408
$258,210,777

$1,133,041
$1,575,086

$2,103,653
$3,138,173

90037
91604

3,555
1,027

$460,709,190
$133,049,413

$942,359,706
$272,146,527

$1,403,068,896
$405,195,940

$8,558,720
$2,471,695

$20,386,586
$5,468,728

90038
91605

389
2,452

$50,467,019
$317,810,024

$103,227,993
$650,065,959

$153,695,012
$967,875,983

$937,540
$5,904,043

$1,865,213
$13,556,445

90039
91606

987
1,801

$127,917,174
$233,465,043

$261,648,765
$477,542,133

$389,565,939
$711,007,176

$2,376,352
$4,337,144

$5,487,957
$10,237,520

90040
91607
Total:
90041

383
917
199,894
899

$49,585,725
$118,870,954
$25,906,610,347
$116,564,039

$101,425,347
$243,145,134
$52,990,793,892
$238,426,443

$151,011,072
$362,016,088
$78,897,404,239
$354,990,482

$921,168
$2,208,298
$481,274,166
$2,165,442

$1,776,760
$4,914,932
$1,190,405,857
$4,495,740

90042

2,733

$354,228,186

$724,557,654

$1,078,785,840

$6,580,594

$16,040,832

90043

3,422

$443,523,964

$907,208,109

$1,350,732,073

$8,239,466

$20,048,155

*Foreclosure data from RealtyTrac. Data is for zip codes fully or partially within city boundary. 2011 - 2012 numbers are projections
90044
6,591
$854,180,862
$1,747,188,126
$2,601,368,988
$15,868,351
$40,261,680
based upon recent trends.

SEPTEMBER 2011

Methodology
Direct impact to foreclosed homes was calculated using methodology from the U.S. Joint Economic Committee
Report (Sheltering Neighborhoods from the Subprime Foreclosure Storm) using median county home value from U.S
Census, decline estimate of 22%, and number of foreclosures from RealtyTrac. The 22% decline estimate is based on
the most conservative property value decline ranging from 22% to 28% based on The Value of Foreclosed Property,
Anthony Pennington-Cross, Marquette University and RealtyTrac 2010 sales report.

Neighboring homes value decline was calculated using methodology from the U.S. Joint Economic Committee Report
(Sheltering Neighborhoods from the Subprime Foreclosure Storm) using median county home value from U.S.
Census, decline in value of 0.9%, and number of foreclosures from RealtyTrac. The decline estimate is based on a
conservative decline estimate of 0.9% on one-eighth mile radius (approximately 50 homes) based on The External
Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values. Dan Immergluck,
Georgia Institute of Technology and Geoff Smith, Woodstock Institute. Higher estimates are put the decline at 1.4%
in low to moderate income communities and others double the impact radius to a quarter of a mile.

Property tax losses were estimated using lost home values (foreclosed and impacted homes as described in prior
section) and California effective property tax rate of 0.61% from the U.S. Census and Tax Foundation.

Impact to local governments based on The Municipal Cost of Foreclosures: A Chicago Case Study. Many experts,
including the U.S. Joint Economic Committee Report, use the $19,229 cost from the Chicago study as an approximate
cost of foreclosure. The Chicago study was published in 2005 and may not capture the full post-crisis level of impacts
and level of costs in California . The cost is conservatively calculated usZK-owned properties).

10

The Wall Street WRECKING BALL

Endnotes:

i

RealtyTrac
Ibid.
iii
Home Wreckers: How Wall St Foreclosures Are Devastating Communities. March 2011.
iv
CoreLogic press release.07 Jun 2011. http://www.corelogic.com/uploadedFiles/Pages/About_Us/ResearchTrends/CL_Q4_2010_Negative_Equity_FINAL.pdf
v
The Value of Foreclosed Property, Anthony Pennington-Cross, Marquette University.
vi
Direct impact to foreclosed homes was calculated using methodology from the U.S. Joint Economic Committee using median county home value from U.S
Census, decline estimate of 22%, and number of foreclosures from RealtyTrac. The 22% decline estimate is based on the most conservative decline ranging from
22% to 28% based on The Value of Foreclosed Property, Anthony Pennington-Cross, Marquette University and RealtyTrac 2010 sales report.
vii
The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values. Dan Immergluck, Georgia Institute of Technology
and Geoff Smith, Woodstock Institute.
viii
Neighboring home value decline was calculated using methodology from the U.S. Joint Economic Committee using median county home value from U.S.
Census, decline in value of 0.9%, and number of foreclosures from RealtyTrac. The decline estimate is based on a conservative decline estimate of 0.9% to one-
eighth mile radius (approximately 50 homes) based on The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property
Values. Dan Immergluck, Georgia Institute of Technology and Geoff Smith, Woodstock Institute. Higher estimates are a 1.4% decline in low to moderate income
communities and others double the impact radius to a quarter of mile.
ix
Consumer Finance: Tapping Home Equity in Retirement. Amy Hoak, Wall St. Journal. March 17, 2011. http://www.marketwatch.com/story/tapping-home-
equity-in-retirement-2011-03-17
x
Property tax losses were estimated using lost home values (foreclosed and impacted homes as described in prior section) and effective tax rate of 0.61% from the
U.S. Census and Tax Foundation.
xi
Methodology based on The Municipal Cost of Foreclosures: A Chicago Case Study. Many experts, including the U.S. Joint Economic Committee, use the
$19,229 cost from the Chicago study as an approximate cost of foreclosure. Also, the Chicago study from 2005 likely does not capture the full post-crisis level of
impacts and level of costs in California . We used a conservative method of only calculating those cost for REOs (bank-owned properties).
xii
http://www.nw.org/network/neighborworksprogs/foreclosuresolutions/reports/documents/7ForeclosureImpacts.pdf
xiii
Cost per foreclosure of $19,229 based on U.S. Joint Economic Committee report using estimates The Municipal Cost of Foreclosures: A Chicago Case Study.
xiv
CA Board of Equalization, CA Property Tax Oveview. http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf
xv
The New Bottom Line. The Win/Win Solution. Aug 2011.
xvi
CoreLogic underwater data and methodology from The Win/Win Solution. The New Bottom Line. Aug 2011.
xvii
Includes bailouts that BofA has paid back and federal guarantee programs it has exited.
xviii
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xix
http://dealbook.nytimes.com/2011/01/31/bank-of-america-c-e-o-gets-9-05-million-stock-bonus/
xx
http://dealbook.nytimes.com/2011/01/31/bank-of-america-c-e-o-gets-9-05-million-stock-bonus/
xxi
Includes bailouts that the bank has paid back.
xxii
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xxiii
2010 not yet available
xxiv
http://dealbook.nytimes.com/2011/01/28/blankfein-gets-13-2-million-for-2010/
xxv
Includes bailouts that the bank has paid back.
xxvi
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xxvii
WFC DEF 14A, 21 Mar 2011, http://www.sec.gov/Archives/edgar/data/72971/000119312511072275/ddef14a.htm
xxviii
WFC DEF 14A, 21 Mar 2011, http://www.sec.gov/Archives/edgar/data/72971/000119312511072275/ddef14a.htm
xxix
Includes bailouts that the bank has paid back.
xxx
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xxxi
http://online.wsj.com/article/SB10001424052748704115404576096473337115378.html
xxxii
Includes bailouts that the bank has paid back.
xxxiii
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xxxiv
http://dealbook.nytimes.com/2011/01/28/blankfein-gets-13-2-million-for-2010/
xxxv
http://dealbook.nytimes.com/2011/01/28/blankfein-gets-13-2-million-for-2010/
xxxvi
Includes bailouts that the bank has paid back.
xxxvii
http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
xxxviii
Aaron Luccheti and Randall Smith. As Street Rebounds, So Does Top Pay. Jan 22, 2011.
http://online.wsj.com/article/SB10001424052748704115404576096473337115378.html
ii

SEPTEMBER 2011

11

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