Regulator defends subprime lending

Regulator defends subprime lending.
Once some borrowers couldn"t make their payments, they put their homes on the market. (In Southern Nevada, there are 25,000 houses for sale, half unoccupied.) Soon, the housing market was glutted and prices began dropping. Neighborhoods emptied, which forced prices down even more. Developers stopped building. Layoffs. And the process starts all over again. Weller said the disruption, which has now caused a credit crunch and is preventing some consumers from getting loans, will cost the U.S. economy 1.5percent growth this year and next.In other words, he said, the real estate crash will make Americans $300 billion poorer. Sun reporters Mary Manning and Brian Wargo contributed to this report. J. Patrick Coolican can be reached at 259-8814 or at patrick.coolican@lasvegassun.com.