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Bernard Madoff, convicted of running an $65 billion Ponzi scheme, was sentenced to 150 years in jail. What’s your take on his punishment?
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The National Governors Association (NGA) is the collective voice of the nation's governors and a respected public policy organization. The NGA represents states on Capitol Hill and before the administration on key federal issues. The NGA Center for Best Practices focuses on state innovations and best practices on issues that range from education and health to technology, welfare reform and the environment. The subprime crisis is usually discussed through a macro lens: how it is hurting the housing market, the construction industry, lenders and the economy in general. States see it as a long-term threat to the stability of neighborhoods and municipalities and the businesses that serve them. Foreclosures have a ripple effect. "Vacant homes often deteriorate due to lack of maintenance and can attract crime. Other homeowners have a difficult time selling their homes when they must compete against steeply-discounted foreclosed homes sold or auctioned by banks. Additionally, municipalities, neighborhoods and local schools lose revenue," says an issue brief from the National Governors Association (NGA).
State Strategies to Address Foreclosures by the NGA Center for Best Practices is the most comprehensive look of the subprime crisis we have seen, looking at its causes, the key players, its effects and the scope of the problem. It tracks various steps that states are taking "to help troubled borrowers, prevent foreclosure and curb predatory lending."
The approaches are often multi-pronged: taking legal aim at predatory lending practices and foreclosure rescue scams; connecting troubled borrowers with legitimate counseling services as early as possible; encouraging lenders to find alternatives to foreclosure; establishing programs that help borrowers restructure or refinance loans and providing aid to borrowers in other forms, including tax relief and stretching out the foreclosure process.
Looking ahead, the report stresses doing more to help potential homeowners long before they sign the mortgage papers. "Many policymakers cite financial education for potential homeowners as a key component of preventing predatory lending and foreclosure by empowering people to take personal responsibility, avoid predatory loans and make good financial decisions," the brief says. "Many cities already require first-time homebuyers to undergo prepurchase counseling, and several state and local governments offer homebuyers the opportunity to access no- or low-cost financial education."
POSTED BY: TSmith (September 26, 2007 10:35 AM)
I work for a foreclosures Web site and have seen a huge increase in the number of foreclosures in the past 9 months. I believe it is a combination of not only sub-prime and ARM mortgages, but also the high number of people who have gotten loans with interest rates at an all time low... in addition to the rapid depreciation in some areas and the difficulty some are experiencing in selling their homes.
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