U.S. Mayors, Representatives Get Aggressive with Foreclosure
By Foreclosure-Fighter staff writer
In late November, the U.S. Conference of Mayors met in Detroit to discuss issues relating to the mortgage foreclosure crisis, including its expected economic impact on America's big cities.
Though this meeting was not open to the media, reports from the Associated Press indicate that the group's next meeting, scheduled for January 2008, will include camera crews for mayors to record public service announcements informing consumers about the national foreclosure-prevention hotline.
At the meeting, leaders reportedly noted that major U.S. cities will suffer because of the foreclosure crisis. Places like New York, Los Angeles, Dallas, Washington and Chicago are expected to lose billions of dollars each in 2008 as a result of productivity loss that can be traced to foreclosure-related problems.
The mayors also asserted their goal of preserving the quality of life in neighborhoods in which foreclosures have become prevalent, sources say.
One of the main messages of the gathered mayors was that borrowers and financial institutions can and should work together to limit the destructive effects high foreclosure rates can have on local communities and the entire country.
In a statement released just after the mayors' meeting, U.S. House Speaker Nancy Pelosi commented on the actions recommended by the leaders of the nation's cities.
Pelosi recognized the predictions for an overall weakened domestic economy in the coming months, and acknowledged that the problems facing the United States call for serious solutions. She noted that the House of Representatives has taken steps throughout this year to address the problems caused by the collapse of the subprime-lending industry.
Recent House initiatives addressing foreclosure include:
- Expanding American Homeownership Act of 2007: Reform of FHA to serve more subprime borrowers through refinancing and alternative lending opportunities.
- Mortgage Reform and Anti-Predatory Lending Act of 2007: Prevention of predatory lending practices to make sure bad loans don't get started, including raised standards for lender disclosure and more leeway for consumer redress.
- Mortgage Forgiveness and Debt Relief: Elimination of law that requires homeowners to pay taxes on portions of a mortgage forgiven by foreclosure.
- National Affordable Housing Trust Fund Act of 2007: Creation of 1.5 million residences for families suffering from predatory lending, job loss, or illness. The measure would provide affordable housing without increasing the national debt.
Most of these initiatives are awaiting further legislative action, but show a trend toward addressing and correcting many of the problems associated with the foreclosure crisis that are facing American families today.