Contrary to popular perception, the foreclosure process can be very costly for a lender…it remains a puzzle as to why such large numbers of mortgages in default enter into foreclosure in the first place.

It appears that mortgage origination and securitization is currently “in limbo”: Private securitization has all but disappeared and is being absorbed by government- sponsored enterprises

To those who don't know, the term "shadow banking" probably has a negative connotation. This primer draws parallels between what has been termed the shadow banking sector and the traditional banking sector—showing that they are similar in many ways.

Increasingly, emerging markets are becoming a source of growth in the global economy. For example, foreign direct investment both into and out of these countries has shown a phenomenal increase since 2000.

On a national level, the number of vacant homes is declining, as is the percentage of mortgages in serious delinquency. However, the demand for housing hasn't picked up, nor have prices.

At least early in the financial crisis, the high rate of foreclosures seemed to be due more to households' overreaching than to predatory lending. A disproportionate number of those being foreclosed on were well-educated, well-off and relatively young people.

As in most crises, investors turned to Treasuries in droves over the past couple of years, even as yields declined.