Looking for our new site?

Cleaning Up The Mortgage Mess

Problems and Solutions

On December 21, 2010, Tim Fernholz, the Asset Building Program’s Research Fellow, gathered a panel of experts to discuss the foreclosure crisis currently affecting millions of homeowners. The emerging picture of the crisis details widespread problems in the way mortgages were bought, sold and combined into complex financial instruments leading to unjust and potentially unlawful foreclosure practices when the housing bubble burst. The result is a great deal of uncertainty about the foreclosure process and the rights or obligations of the parties involved. Unfortunately, the legal means to address the crisis are not developed enough to remedy the problems brought about by the flawed financial innovation in the housing and mortgage markets. The failings of inadequate foreclosure review and consumer protections are exacerbating problems in the wider economy.

Mike Konczal, Fellow at the Roosevelt Institute, gave an overview of the securitization process and how the foreclosure crisis emerged. Alon Cohen, author of the “Foreclosure Mediation Series” and an attorney affiliated with the Center for American Progress, presented foreclosure mediation as an alternative to the traditional foreclosure process and offered evidence of its positive outcomes for homeowners and lenders. Julia Gordon, Senior Policy Counsel at the Center for Responsible Lending, presented the need for a better triage system within the foreclosure servicing process to identify situations that would be better addressed through alternative means. Finally, Damon Silvers, a member of the Congressional Oversight Panel for TARP and Director of Policy and Special Counsel for the AFL-CIO, argued that the foreclosure crisis is building systemic risks that could further destabilize the financial sector and the wider economy.

After the individual presentations, a discussion among the panelists attempted to clarify the current responsibility of regulators to monitor foreclosure servicing, sketch the role of government sponsored corporations moving forward and list the top priorities to solving the foreclosure crisis.

Participants

Featured Speakers
Alon Cohen (Presentation)
Author, Foreclosure Mediation Series
Center for American Progress

Mike Konczal (Presentation)
Fellow
Roosevelt Institute

Julia Gordon
Senior Policy Counsel
Center for Responsible Lending

Damon Silvers
Member, Congressional Oversight Panel for TARP
Director of Policy and Special Counsel, AFL-CIO

Moderator
Tim Fernholz
Research Fellow, Asset Building Program, New America Foundation
Staff Writer, The American Prospect

 

You might also be interested in reading:
Mortgage Trouble Redux
, October 13, 2010, The American Prospect, by Tim Fernholz
Blind Trust, November 17, 2010, The American Prospect, by Tim Fernholz

 

Event Time and Location

Tuesday, December 21, 2010 - 12:15pm - 1:45pm
New America Foundation
1899 L Street NW Suite 400
Washington, DC 20036

Related Programs

Event Photos

Click here to view these photos.
A range of photos from this event are available on Flickr. Click on the icon at left to view or download the photos.