The high costs of domestic violence

I am writing in recognition of Domestic Violence Awareness Month and to shed some light on the economic impact of domestic violence. As director of Wilson SC Associates Mortgage Corp., I have seen a large number and variety of credit reports. These reports have ranged from those with excellent credit to those with major issues, including bankruptcy and possible foreclosure. The clients with major credit issues invariably have had some major event happen in their lives, primarily divorce/domestic violence, loss of job and/or a major medical issue. Statistically divorce/domestic violence ranks up there as one of the main reasons for these major credit issues and bankruptcy.

Consider the following as reported by the U.S. Centers for Disease Control (CDC) in October 2005: (a) the cost of one case of domestic violence was estimated at $948, which includes medical emergency room costs, mental health, and lost productivity; (b) annual productivity loss was estimated at $727 million and 7.9 million paid workdays lost per year (c) health-related costs of rape, physical violence, stalking and homicide by intimate partners were estimated at $5.8 billion, which includes $4.1 billion in medical costs and $1.8 billion in lost productivity.

These costs obviously play into a borrower's ability to pay their monthly mortgage, which affects their credit and their ability to maintain their homes. In addition, major credit issues, bankruptcy and foreclosure often preclude victims of domestic violence from accessing credit for several years, affecting their ability to support themselves and/or their children. Many must turn to social service agencies or public assistance programs where scarce taxpayer dollars are currently needed to help adults and children simply survive. This is a problem of staggering proportions, and we as a community have both a moral and civic duty to take a stand.

Gaetano Mizzi

Wilson & Associates

Mortgage Corp.

Chicago