How HSBC’s example started the housing crisis

Before 2006, roughly 2 percent of subprime mortgages ended up in foreclosure, industry data show. But in the Long Beach Mortgage Loan Trust 2006-4, at least 44 percent of these mortgages ended up in foreclosure, according to an Investigative Fund analysis, with the help of RealtyTrac, a real-estate data company. What was the percentage at …