Default correlation: An empirical investigation of a subprime lender [An article from: Journal of Banking and Finance] According to an article published on the CNN website, Jim Gillespie, president and chief executive of Coldwell Banker Real Estate, said foreclosures were adding a relatively low number of homes to an already oversupplied market. “This added inventory would likely equate to at most a one-month increase in supply,” Gillespie said in an e-mail responding to Reuters’ questions. “I believe the subprime problem will not significantly hurt the real estate market. It may delay the rebound, but it will not cause a downturn,” he said. “Remember, most who took a sub-prime mortgage before 2005 enjoyed strong appreciation and many have income to support a higher mortgage payment.”