Foreclosure policy conference highlights diverse approaches to crisis

A conference entitled “Mortgage Foreclosure Policy: Past, Present, and Future” brought together leading practitioners and scholars of the foreclosure crisis at the Federal Reserve Bank of Chicago to highlight national and local efforts to combat foreclosures, engage in critical discussion of the causes of and solutions to the crisis, and develop plans to avoid future foreclosure crises.
 
Strategies that aim to solve the foreclosure crisis must take into account the varied causes of the crisis, from predatory lending to negative equity to unemployment. These strategies need to mitigate foreclosure’s wide-ranging negative effects on homeowners and renters, such as loss of shelter and investments, and on communities, like the falling home values and increased crime rates attributed to high concentrations of vacant properties. The variety of strategies aimed at foreclosure prevention and revitalization of heavily-impacted neighborhoods showcased at the conference emphasized innovation and coordination as key to effective solutions.
 
Keynote speaker Elizabeth Duke of the Federal Reserve Board of Governors offered attendees  an overview of problems that led up to the crisis, the pain felt in today’s housing market, and principles to ensure a healthier market in the future. Governor Duke emphasized the need for implementing adequate consumer protections, increased transparency and simplicity for both mortgage products and the securitization market, and properly aligned incentives for servicers, brokers, and loan officers. Click here for the full text of Governor Duke’s speech.
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