House Passes Bill That Will Provide Mortgage Relief to Struggling Homeowners
March 5, 2009 - Posted by Isha Mehmood
Millions of struggling homeowners facing foreclosure are now one step closer to having the opportunity to save their homes through bankruptcy proceedings, after the House of Representatives passed a mortgage relief bill (234-191) today.
A provision in the Helping Families Save Their Homes Act gives bankruptcy judges the authority to rework home mortgages on family homes to an affordable value. Currently, bankruptcy judges are permitted to modify mortgages on second homes and most other debts, but not mortgages on primary homes.
Though foreclosures slowed a bit in January 2009, there were foreclosure filings on more than two million properties in 2008, a 81 percent increase over the previous year.
The Act will also make permanent an increase in the limit of Federal Deposit Insurance Corporation (FDIC) insurance on deposits in FDIC banks to $250,000. The limit was temporarily raised from $100,000 in last year's Emergency Economic Stabilization Act, but the increase was scheduled to expire at the end of 2009.
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Fair Housing Centers Fight Discrimination with Limited Resources
March 5, 2009 - Posted by Tyler Lewis
 Shanna L. Smith, president and CEO of the National Fair Housing Alliance, presenting findings from the National Commission on Fair Housing and Equal Opportunity report at a February Capitol Hill briefing. Every year, an estimated four million incidents of housing discrimination occur against African Americans, Latinos, Native Americans and Asian Americans, according to the National Fair Housing Alliance.
However, the private organizations that are authorized to investigate housing discrimination complaints are often working with limited resources.
A federal program called the Fair Housing Initiatives Program (FHIP) provides the funding that allows these organizations to conduct investigations of housing discrimination complaints. The program also funds educational efforts such as outreach to real estate companies, agents, landlords, and consumers about fair housing laws.
However, a recent report by the National Commission on Fair Housing and Equal Opportunity found that while these organizations process the majority of housing discrimination complaints, FHIP has not been funded at a level that allows them to fully perform their enforcement duties.
A bill currently pending in Congress, the Housing Fairness Act, will increase funds for FHIP. It also provides funds for nationwide testing to be conducted every two years to determine patterns of housing discrimination.
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Obama Announces Plan to Address the Foreclosure Crisis and Pledges to Reform Bankruptcy Laws
February 19, 2009 - Posted by Marcus-Alexander Neil
Yesterday, President Obama pledged to reform bankruptcy laws so that judges are allowed to rework home mortgages on family homes to an affordable value. Currently, bankruptcy judges are permitted to modify mortgages on second homes, but not mortgages on primary residences.
This reform will give bankruptcy judges the authority to modify mortgages, providing struggling families the opportunity to save their home from foreclosure. "That's the rule for investors who own two, three, and four homes. So it should be the rule for folks who just own one home," said Obama, during his speech yesterday announcing the plan.
In addition, The Homeowner Affordability and Stability Plan focuses on helping homeowners refinance their mortgages to be more affordable. The plan will provide $75 billion to help stabilize mortgages for three to four million homeowners at risk of foreclosure. This broad and comprehensive plan also aims to lower mortgage rates by rebuilding public confidence in Fannie Mae and Freddie Mac.
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Center for Responsible Lending Tracks Up-To-The-Second Data on Foreclosures
February 12, 2009 - Posted by Tyler Lewis
Every week, 6,600 foreclosure proceedings start. That's one every 13 seconds.
The Center for Responsible Lending's website now has a constantly-updated counter showing the number of new foreclosures this year in the United States, as well as totals for each state. The counter is a graphic reminder of how severe the mortgage crisis is. The foreclosure data is based on Mortgage Banker Association figures.
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President Obama Addresses Bankruptcy Bill to Help Struggling Homeowners
February 10, 2009 - Posted by Tyler Lewis
Check out a video of President Obama from last night's speech in Elkhart, Ind., on the status of the economic recovery plan. Obama answers a question about whether or not a bill currently pending in Congress that would give bankruptcy judges the ability to adjust mortgage payments for struggling homeowners would pass. You can also read the transcript.
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Geithner Confirmed as Treasury Secretary; Calls for Plan to Address Foreclosures
January 27, 2009 - Posted by Marcus-Alexander Neil
 Treasury Secretary Tim Geithner Tim Geithner was sworn in as treasury secretary yesterday evening having been confirmed earlier that day by the Senate in a 60 to 34 vote. As treasury secretary, Geithner will serve as the principle economic advisor to President Obama, advising him on how best to manage the federal government's economic policy, at a time when the nation is dealing with a mortgage crisis and a recession.
At his confirmation hearing earlier this month, Geithner urged Congress to pass Obama's American Recovery and Reinvestment Plan. The plan, outlined in Obama's first weekly address, will create three million new jobs, with just over 80 percent in the private sector, while also providing direct tax relief to 95 percent of American workers. Geithner called the plan "a critical part" of the solution to the nation's economic crisis but stressed that it had to be accompanied by "aggressive action to address the housing crisis and to get credit flowing again."
Geithner also noted that much of the problem with the nation's economy is related to "unprecedented foreclosure rates" and cited the need to provide a "comprehensive" plan for addressing the nation's housing crisis.
Video of the hearing (Real Player).
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Foreclosures Hit Record High in 2008
January 15, 2009 - Posted by Tyler Lewis
 There were more than 3 million foreclosure filings in the United States in 2008, according to RealtyTrac data released today.
This number represents an 81 percent increase over filings in 2007, and a 225 percent increase over filings in 2006. Some economists predict that foreclosure rates could continue to rise through 2011.
A bill that will give bankruptcy judges the authority to restructure mortgages in default and slow the tide of foreclosures has been pending in Congress for over a year, but is likely to pass this year.
"[J]udicial modification of loans in bankruptcy court is available for owners of commercial real estate and yachts, as well as subprime lenders like New Century and investment banks like Lehman Bros., yet it is denied to families whose most important asset is the home they live in…Eliminating this exception would immediately help stem the tide of foreclosures at zero cost to the U.S. taxpayer," said Michael Calhoun, president of the Center for Responsible Lending, in a January 13 hearing on the foreclosure crisis in the House of Representatives.
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LCCR's Wade Henderson on NPR
December 12, 2008 - Posted by Clarissa Peterson
Wade Henderson, president and CEO of LCCR, was on NPR's "Tell Me More" this week to talk about the National Commission on Fair Housing and Equal Opportunity. Listen to the Interview
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Fair Housing Commission Releases Report
December 8, 2008 - Posted by Maggie Kao
Today, the National Commission on Fair Housing and Equal Opportunity released The Future of Fair Housing, a report of their findings and recommendations following an investigation of the alarming state of U.S. housing in the wake of the subprime housing debacle.
Their recommendations include the creation of an independent fair housing enforcement agency as well as strengthening existing fair housing programs and increasing public education.
The national, bipartisan commission is co-chaired by two former HUD secretaries, Henry Cisneros and Jack Kemp, and was formed by a partnership of LCCR/EF, the National Fair Housing Alliance, the NAACP Legal Defense and Educational Fund, and the Lawyers' Committee for Civil Rights Under Law.
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