At an event hosted Tuesday by the New America Foundation’s Asset Building Program and the National Council of La Raza, Sen. Jeff Merkley (D-OR) outlined his ideas for mitigating the foreclosure crisis.
The senator’s proposals come at a critical time -- last year saw more than one million foreclosures, and banks will foreclose on another million in 2011. All told, we could see as many as six million foreclosures in the coming years -- further hobbling the U.S. economy, and destroying the financial security of millions of American families.
As the senator himself put it in his remarks: “It’s as if you had a massive flood and everyone rushed out to repair the dyke, but did nothing about the families whose homes are flooded.”
Merkley’s policy presciptions include:
Improving the current loan modification programs, which he labeled “a colossal disappointment.”
Allowing bankrupty courts to preside over foreclosures.
Further reforming the foreclosure process to allow for opt-out mediation, lease-purchase agreements and other “win-win” opportunities.
Providing all first-time home-buyers with a tax credit of up to $5,000 per household, to “pave the way for a healthy housing market in the future."
“Senator Merkley should be applauded for keeping attention focused on this important issue,” Reid Cramer, director of New America’s Asset Building Program, said. “With so many crises competing for Congress’ attention, the human side of foreclosures simply isn’t getting the attention it deserves. Senator Merkley’s proposals offer a great chance to advance this critical conversation.”
The full video of Sen. Merkley’s remarks can be viewed at http://newamerica.net/events/2011/current_foreclosure_crisis.
Reid Cramer is available to comment on the senator’s proposals, as well as the larger questions surrounding this issue. Please contact Troy K. Schneider at schneider@newamerica.net for scheduling and availability.
Tuesday’s event was the latest in a series hosted by the Asset Building Program, which has long focused on promoting alternative paths to homeownership, and on the importance of stable, sustainable mortgage products for families’ ability to build assets and wealth over time. Previous discussions include “The Subprime Virus,” “Balancing Affordability and Asset Building in Homeownership Programs,” and “Cleaning Up The Mortgage Mess: Problems and Solutions.” The program also regularly explores the foreclosure crisis and its potential solutions on its blog, The Ladder.
