Mortgage lending

Neighbordhood Stabilization Act of 2008

hmoroz — Fri, 09 May 2008 14:46:16 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Estimated economic activity generated by the Neighborhood Reinvestment Act, in dollars: 38 billion

Estimated employment generated by the act, in dollars: 120,000

Estimated real estate tax collections that will result from the act, in dollars: 225 million

Cost of the Neighborhood Stabilization Act between 2009 and 2013, as estimated by the Congressional Budget Office, in dollars: 8.4 billion

Estimated total decline in house values and tax base from foreclosures originated in 2005 and 2006 on nearby properties, in dollars: 202 billion

Number of rental homes that are available and affordable for every 100 extremely low-income families: 38

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The Neighborhood Stabilization Act addresses two important problems plaguing aspiring middle-class Americans: the community breakdown that can result from vacant foreclosed homes in neighborhoods across the country and the lack of affordable housing. Middle-class Americans who are current on their mortgages and face no personal risk of foreclosure are nevertheless harmed when a foreclosed home down the street brings down property values, erodes the local tax base, and threatens to become a magnet for crime. The Center for Responsible Lending has shown that approximately 40.6 million homes will experience devaluation because of nearby subprime foreclosures and that homeowners living near foreclosed properties will lose approximately $5,000 on the value of their homes. At the same time, one of the causes of the foreclosure crisis was a lack of affordable housing and the targeting of low-income neighborhoods by subprime lenders. By funneling federal money to local agencies to serve lower- and extremely low-income individuals, the Neighborhood Stabilization Act will help neighborhoods recover from the harm done to their communities by foreclosures while helping to ensure that neighborhoods can accommodate aspiring middle-class Americans. The bill’s allocation of funds to metro areas and urban counties further ensures that the communities hardest hit by the foreclosure crisis receive much needed relief. Providing funds for rental properties, along with protections for renters of foreclosed properties, recognizes that the foreclosure crisis affects aspiring middle-class and middle-class renters as well as homeowners.

Quotes from Experts

Beyond this Bill

Additional Resources

“Subprime Spillover”, from the Center for Responsible Lending

“Out of Reach”, a guide to rents and the lack of affordable housing from the National Low Income Housing Coalition

Center for American Progress on Neighborhood Stabilization

Neighbordhood Stabilization Act of 2008

hmoroz — Fri, 09 May 2008 14:46:16 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Estimated economic activity generated by the Neighborhood Reinvestment Act, in dollars: 38 billion

Estimated employment generated by the act, in dollars: 120,000

Estimated real estate tax collections that will result from the act, in dollars: 225 million

Cost of the Neighborhood Stabilization Act between 2009 and 2013, as estimated by the Congressional Budget Office, in dollars: 8.4 billion

Estimated total decline in house values and tax base from foreclosures originated in 2005 and 2006 on nearby properties, in dollars: 202 billion

Number of rental homes that are available and affordable for every 100 extremely low-income families: 38

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Subprime Spillover”, from the Center for Responsible Lending

“Out of Reach”, a guide to rents and the lack of affordable housing from the National Low Income Housing Coalition

Center for American Progress on Neighborhood Stabilization

Neighbordhood Stabilization Act of 2008

hmoroz — Fri, 09 May 2008 14:46:16 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Estimated economic activity generated by the Neighborhood Reinvestment Act, in dollars: 38 billion

Estimated employment generated by the act, in dollars: 120,000

Estimated real estate tax collections that will result from the act, in dollars: 225 million

Cost of the Neighborhood Stabilization Act between 2009 and 2013, as estimated by the Congressional Budget Office, in dollars: 8.4 billion

Estimated total decline in house values and tax base from foreclosures originated in 2005 and 2006 on nearby properties, in dollars: 202 billion

Number of rental homes that are available and affordable for every 100 extremely low-income families: 38

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Subprime Spillover”, from the Center for Responsible Lending

“Out of Reach”, a guide to rents and the lack of affordable housing from the National Low Income Housing Coalition

Center for American Progress on Neighborhood Stabilization

Foreclosure Prevention Act of 2008 [Revised Bill]

atraub — Thu, 10 Apr 2008 14:37:17 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Amount of mortgage-related assets that the Federal Reserve assumed as collateral for a loan it made to facilitate the sale of Bear Sterns to J.P. Morgan Chase: $30 billion

Amount this bill provides in tax refunds for businesses that claim a loss: $6.1 billion

Amount this bill provides to state and local governments across the country to shore up neighborhoods devastated by mortgage foreclosures: $4 billion

Estimated number of foreclosures prevented if Congress lifted the ban on loan modifications by bankruptcy courts, a provision this bill does not include: 600,000

Amount of home equity saved if Congress lifted the ban on court-supervised loan modifications that would otherwise be lost because of foreclosures of neighboring properties: $72.5 billion

Amount that lifting the ban on court-supervised loan modifications would cost middle-class taxpayers: $0

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. With two million families facing the loss of their homes over the next two years and large sectors of the U.S. economy destabilized by mortgage defaults, the foreclosure crisis and the wider turmoil it has caused are among the greatest threats to middle-class Americans today. This bill responds to that threat, although not in the most effective way. The bill is stuffed with costly and irrelevant provisions, while the positive steps it does include fail to go far enough to help struggling families. The single most effective measure proposed to address the crisis – a change in bankruptcy law that would prevent hundreds of thousands of foreclosures – was killed as an amendment. Meanwhile some provisions that did make it into the final bill could even make the foreclosure problem worse.

Positive measures in the bill include FHA modernization, which will enable more homeowners to refinance problematic mortgages. The block grants for communities hard hit by the crisis to reclaim foreclosed properties and turn them into affordable homes is another very positive step, but here too the amount of funding may be too little to revitalize neighborhoods in need. Funding for mortgage counseling is also beneficial, but inadequate. And while enhanced mortgage disclosures are helpful, they are no substitute for a genuine ban on deceptive lending practices along the lines enacted by some state governments. The tax exempt bonds for state agencies to refinance subprime loans is a modest effort which will inevitably bail out lenders, whose lax standards helped cause the crisis, along with struggling homeowners.

While provisions to help homeowners and devastated communities are stingy, home builders and other businesses facing economic losses due to the downturn reap $6.1 billion in tax breaks. This provision has little to do with helping prevent foreclosure and is not even a cost-effective means of economic stimulus. The property tax deduction for non-itemizers is similarly problematic. While many middle-class families might see a small tax break under this provision, the credit is not substantial enough to help families who face foreclosure or are having serious difficulties making mortgage payments and is not targeted at these homeowners. To make matters worse, the deduction is limited to people who live in areas that have not raised property taxes. This creates an incentive for states and municipalities to cut services that middle-class families rely on rather than raising the revenue needed to preserve them. Finally, the tax credit for buying a foreclosed home might, as the Washington Post point out, actually encourage more home foreclosures.

The alternative energy tax breaks, added at the last minute, are similar to those included in the House’s Renewable Energy and Energy Conservation Tax Act. Providing the public investment necessary to jump start the development and promotion of renewable energy sources and ultimately mitigate global warming sweetens what is otherwise a unsatisfactory effort to deal with the home mortgage crisis. Middle-class Americans will ultimately see some benefit from this bill – but they deserve better.

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Housing Legislation Highly Disappointing” from the Center for Budget and Policy Priorities

Mortgage Lending page from the Center for Responsible Lending

Foreclosure Prevention Act of 2008 [Revised Bill]

atraub — Thu, 10 Apr 2008 14:37:17 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Amount of mortgage-related assets that the Federal Reserve assumed as collateral for a loan it made to facilitate the sale of Bear Sterns to J.P. Morgan Chase: $30 billion

Amount this bill provides in tax refunds for businesses that claim a loss: $6.1 billion

Amount this bill provides to state and local governments across the country to shore up neighborhoods devastated by mortgage foreclosures: $4 billion

Estimated number of foreclosures prevented if Congress lifted the ban on loan modifications by bankruptcy courts, a provision this bill does not include: 600,000

Amount of home equity saved if Congress lifted the ban on court-supervised loan modifications that would otherwise be lost because of foreclosures of neighboring properties: $72.5 billion

Amount that lifting the ban on court-supervised loan modifications would cost middle-class taxpayers: $0

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Housing Legislation Highly Disappointing” from the Center for Budget and Policy Priorities

Mortgage Lending page from the Center for Responsible Lending

Foreclosure Prevention Act of 2008 [Revised Bill]

atraub — Thu, 10 Apr 2008 14:37:17 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Amount of mortgage-related assets that the Federal Reserve assumed as collateral for a loan it made to facilitate the sale of Bear Sterns to J.P. Morgan Chase: $30 billion

Amount this bill provides in tax refunds for businesses that claim a loss: $6.1 billion

Amount this bill provides to state and local governments across the country to shore up neighborhoods devastated by mortgage foreclosures: $4 billion

Estimated number of foreclosures prevented if Congress lifted the ban on loan modifications by bankruptcy courts, a provision this bill does not include: 600,000

Amount of home equity saved if Congress lifted the ban on court-supervised loan modifications that would otherwise be lost because of foreclosures of neighboring properties: $72.5 billion

Amount that lifting the ban on court-supervised loan modifications would cost middle-class taxpayers: $0

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Housing Legislation Highly Disappointing” from the Center for Budget and Policy Priorities

Mortgage Lending page from the Center for Responsible Lending

Helping Families Save Their Homes in Bankruptcy Amendment of 2008

hmoroz — Fri, 04 Apr 2008 13:47:08 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Percentage of securitized subprime loans from the fourth quarter of 2006 that are projected to end in foreclosure: 50

Percentage increase of foreclosure filings from February 2007 to February 2008: 60

Estimated number of foreclosures that a mortgage restructuring provision for primary residences would prevent: 600,000

Number of homes that will experience devaluation because of subprime foreclosures that take place nearby: 40.6 million

Average decline in property values for homeowners living near foreclosed properties, in dollars: 5,000

Amount of wealth the Center for Responsible Lending estimates would be saved by similar legislation that would otherwise be lost because of foreclosures of neighboring properties, in dollars: 72.5 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports the Durbin Amendment and Opposes this vote to kill the amendment. The federal government and the mortgage industry’s failure to address the subprime mortgage and foreclosure crisis adequately could result in as many as 1.9 million Americans losing their homes in 2008 and 2009. Despite national awareness of the dire situation throughout 2007, foreclosure filings increased 60% from February 2007 to February 2008. Extending the same bankruptcy protections to primary residences that currently apply to luxury yachts and vacation homes is not only fair, but would prevent 600,000 families from losing their homes to foreclosure. Strengthened bankruptcy protection is also beneficial to middle-class families who are not themselves facing foreclosure: protecting these 600,000 families from foreclosure would save neighbors of foreclosed properties $72.5 billion in wealth that would otherwise be lost to reduced property values. Because the Helping Families Save Their Homes in Bankruptcy Amendment restricts eligibility for bankruptcy mortgage restructuring to homeowners who are unable to afford currently existing mortgages, mortgage interest rates should not increase: only homes in danger of foreclosure will qualify and the risk of foreclosure is already calculated into current interest rates. The “homestead floor” of $75,000 for homeowners over the age of 55 who are in bankruptcy allows older middle-class Americans to protect a minimum amount of investments they have made in their homes, while preventing wealthy Americans from using large estates to shelter money from creditors.

Quotes from Experts

Beyond this Bill

Additional Resources

Testimony of Mark Zandi, Chief Economist of Moody’s Economy.com, before the Senate Judiciary Committee

Center for Responsible Lending on Court-Supervised Loan Modifications

Harvard Law Professor Elizabeth Warren on Bankruptcy Reform and the Housing Crisis

Helping Families Save Their Homes in Bankruptcy Amendment of 2008

hmoroz — Fri, 04 Apr 2008 13:47:08 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Percentage of securitized subprime loans from the fourth quarter of 2006 that are projected to end in foreclosure: 50

Percentage increase of foreclosure filings from February 2007 to February 2008: 60

Estimated number of foreclosures that a mortgage restructuring provision for primary residences would prevent: 600,000

Number of homes that will experience devaluation because of subprime foreclosures that take place nearby: 40.6 million

Average decline in property values for homeowners living near foreclosed properties, in dollars: 5,000

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Testimony of Mark Zandi, Chief Economist of Moody’s Economy.com, before the Senate Judiciary Committee

Center for Responsible Lending on Court-Supervised Loan Modifications

Harvard Law Professor Elizabeth Warren on Bankruptcy Reform and the Housing Crisis

Helping Families Save Their Homes in Bankruptcy Amendment of 2008

hmoroz — Fri, 04 Apr 2008 13:47:08 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Percentage of securitized subprime loans from the fourth quarter of 2006 that are projected to end in foreclosure: 50

Percentage increase of foreclosure filings from February 2007 to February 2008: 60

Estimated number of foreclosures that a mortgage restructuring provision for primary residences would prevent: 600,000

Number of homes that will experience devaluation because of subprime foreclosures that take place nearby: 40.6 million

Average decline in property values for homeowners living near foreclosed properties, in dollars: 5,000

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Testimony of Mark Zandi, Chief Economist of Moody’s Economy.com, before the Senate Judiciary Committee

Center for Responsible Lending on Court-Supervised Loan Modifications

Harvard Law Professor Elizabeth Warren on Bankruptcy Reform and the Housing Crisis

Foreclosure Prevention Act of 2008

hmoroz — Thu, 06 Mar 2008 10:53:38 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage of securitized subprime loans from the fourth quarter of 2006 that are projected to end in foreclosure: 50

Percentage increase of foreclosure filings from January 2007 to January 2008: 57

Estimated number of foreclosures that the mortgage restructuring provision in the Foreclosure Prevention Act would prevent: 600,000

Number of homes that will experience devaluation because of subprime foreclosures that take place nearby: 40.6 million

Average decline in property values for homeowners living near foreclosed properties, in dollars: 5,000

Amount of wealth saved by the Foreclosure Prevention Act that would otherwise be lost because of foreclosures of neighboring properties, in dollars: 72.5 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The federal government and the mortgage industry’s failure to address the subprime mortgage and foreclosure crisis adequately could result in as many as 1.9 million Americans losing their homes in 2008 and 2009. Despite national awareness of the dire situation throughout 2007, foreclosure filings increased 57% from January 2007 to January 2008. Extending the same bankruptcy protections to primary residences that currently apply to luxury yachts and vacation homes is not only fair, but would prevent approximately 600,000 families from losing their homes to foreclosure. Strengthened bankruptcy protection is also beneficial to families who are not themselves facing foreclosure: protecting these 600,000 families from foreclosure would save neighbors of foreclosed properties $72.5 billion in wealth that would otherwise be lost to reduced property values. Because the Foreclosure Prevention Act restricts eligibility for bankruptcy mortgage restructuring to homeowners who are unable to afford their current mortgages, mortgage interest rates should not increase: only homes in danger of foreclosure will qualify and the risk of foreclosure is already calculated into current interest rates. Funds for counseling services would further reduce the potential for foreclosure, while resources for redevelopment of abandoned and foreclosed homes would mitigate the decline of property value that weakens the financial stability of homeowners and shrinks the revenues of state and local governments. The Foreclosure Prevention Act is an important next step to assist cash-strapped middle-class Americans after the economic stimulus package signed into law in February of 2008.

Quotes from Experts

Beyond this Bill

Additional Resources

Testimony of Mark Zandi, Chief Economist of Moody’s Economy.com, before the Senate Judiciary Committee

Center for Responsible Lending on the Foreclosure Prevention Act of 2008

Harvard Law Professor Elizabeth Warren on Bankruptcy Reform and the Housing Crisis

Mortgage lending

Neighbordhood Stabilization Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Neighbordhood Stabilization Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Neighbordhood Stabilization Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Foreclosure Prevention Act of 2008 [Revised Bill]

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Foreclosure Prevention Act of 2008 [Revised Bill]

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Foreclosure Prevention Act of 2008 [Revised Bill]

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Helping Families Save Their Homes in Bankruptcy Amendment of 2008