NEW YORK (AP) - Karl Case, the co-creator of a widely watched housing market index, was upbeat three weeks ago. Mulling the economy while at a meeting at a resort near the Berkshires, Case
thought the makings of a recovery were finally falling into place.
Today, Case's mood is far more subdued. In scarcely two weeks, he and other housing analysts have watched as the once-staid world of back-office bank procedures has spawned a scandal that threatens to further unhinge the housing market.
Allegations of possible mortgage fraud against major banks read like a corporate thriller: forged documents, phantom titles and disappearing paper trails. The uncertainty could gum up the foreclosure process for years and delay a recovery in prices.
(Copyright 2010 by The Associated Press. All Rights Reserved.)