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Financial Crisis

Asset Building: Mitigating the Impacts of Fraudulent Foreclosures

June 23, 2011

While it may seem natural that a severe downturn would trigger a rising level of displacement, mounting evidence suggests that widespread fraud by lenders has led to foreclosures that should have and could have been avoided. This is the backdrop for ongoing talks between the big banks and a coalition of state attorney generals to reach a settlement that avoids future litigation. There are credible estimates that banks saved at least $25 billion by failing to comply with the law.

Mitigating the Impacts of Fraudulent Foreclosures

June 23, 2011

While it may seem natural that a severe downturn would trigger a rising level of displacement, mounting evidence suggests that widespread fraud by lenders has led to foreclosures that should have and could have been avoided. This is the backdrop for ongoing talks between the big banks and a coalition of state attorney generals to reach a settlement that avoids future litigation. There are credible estimates that banks saved at least $25 billion by failing to comply with the law. We should expect a commensurate fine, but we should focus efforts on keeping families in their homes and support more mortgage modifications. Here’s a podcast describing some ideas promoted by Senator Jeff Merkley to do just that.

 


One in Four Americans Has No Emergency Savings

June 22, 2011

That's the headline from Bankrate's June Financial Security Index poll. It's definitely worth reading their release in its entirety. Though I would point out a few things, first, the article oversells the rhetoric about a "double-dip recession" IMHO. Second, while the headline is attention grabbing it undersells the findings of the study.

Lousy Economy Won't Sink Obama

  • By
  • Peter Beinart,
  • New America Foundation
June 6, 2011 |

or a couple of years now, optimists about Barack Obama's reelection prospects (myself included) have peddled the Ronald Reagan analogy. Reagan, you may remember, won 49 states in 1984 with the unemployment rate at 7.4 percent. The lesson: a president overseeing a weak economy can still win reelection—easily—if people believe the worst is over and prosperity is about to return.

No More Rabbits in the Hat

June 9, 2011

-- This is a guest post by Jay Pelosky, Principal, J2Z Advisory, LLC --

GLOBAL BACKDROP

Time to Rein in the Mortgage Servicers

June 3, 2011

Somewhere between addressing predatory lending, mortgage origination, and what to do with the onslaught of vacant and abandoned properties, we failed to really address everything in the middle. Maybe that is a little harsh. Several academics, state Attorneys General, and media outlets reported problems in mortgage servicing, scary trends like the difficulty of reaching someone with authority on the phone or the consistent loss of paperwork.

A Bank to Re-Build America?

Wednesday, June 8, 2011 - 9:15am

America's infrastructure is in disrepair -- in part because the way we finance it is inadequate. Thus, bi-partisan support for a national infrastructure bank to help close our infrastructure deficit is growing.

Michele Wucker Guest Hosts CNBC, Speaks About Debt Restructuring

May 23, 2011

Michele Wucker, president of the World Policy Institute and co-sponsor of the World Economic Roundtable, guest hosted Worldwide Exchange this morning and spoke about her recent paper advocating for a voluntary debt restructuring in Europe.

Mortgage Fraud Settlement Talks Should Support Foreclosure Mitigation Efforts

May 20, 2011
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At this point, it is common knowledge that widespread fraud by lenders and servicers played a role in the housing crisis and has led to foreclosures that should have and could have been avoided. This is the backdrop for a set of ongoing talks between the big banks and state attorney generals to reach a settlement that avoids future litigation. The banks and their servicers appear to be on the hook for some serious cash. The question is how much.

A Federal Reserve for the 21st Century

May 5, 2011

The Asset Building Program and Economic Growth Program at New America is hosting a unique, two-day, two-city event focused on the future of the Federal Reserve. We are delighted to be co-sponsoring the event with the Roosevelt Institute. The first event took place in New York City and focused on the past, present and future of the Fed as a banking and job creation institution.

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