Joint Economic Committee Releases Report: "Sheltering Neighborhoods from the Subprime Foreclosure Storm"
|April 12, 2007|
|JEC Report: Sheltering Neighborhoods from the Subprime Foreclosure Storm [pdf]|
Recent increases in delinquencies and foreclosures in the subprime mortgage market have raised widespread concerns about the possibility of accelerating foreclosures throughout this year and next. While lenders, banks, and securities traders scramble to figure out how to insure themselves from the market consequences of rising subprime mortgage defaults, local communities are struggling to stem the tide of foreclosures that impose significant costs on families, neighborhoods and cities. This report analyzes the subprime foreclosure phenomenon at the local level, describes the high spillover costs of foreclosures, and argues that foreclosure prevention is cost-effective.