Foreclosure Research - Blog Posts

July 8, 2010

The impact of the foreclosure crisis continues to be front and center for the Chicago region’s communities. The 2010 Regional Home Ownership Preservation Initiative Annual Plenary will be an opportunity to hear from experts on economic and foreclosure trends, as well as a chance to share information about successes, challenges and emerging initiatives from peers and practitioners throughout the region. Topics to be covered include:

June 30, 2010

Thanks to your support, House and Senate conferees have passed a strong financial reform bill (read the summary and full text) that will protect consumers and introduce transparency to the financial system. The bill now goes to the full House and Senate for consideration. These reforms are major steps towards preventing another crisis and creating a sustainable financial system where all consumers can safely borrow and save for a brighter future.

June 29, 2010

Permanent loan modifications in the Chicago region continued to rise, increasing by 17% from April to May, but trial modifications and total Home Affordable Modification Program (HAMP) activity continued to drop. Trial modifications fell by 27% from April to May, and total HAMP activity fell by 13% over the same period (see charts A and B below).

April 29, 2010

An increasing number of Chicago area homes were lost to foreclosure in the first three months of 2010, according to new foreclosure data released by Woodstock Institute.  In the first quarter of 2010, there were 9,302 completed foreclosure auctions in the region, the largest number of completed auctions recorded in a quarter since the beginning of the mortgage crisis in 2006.  In the Chicago six-county area the number of completed foreclosure auctions in the first quarter of 2010 increased by 56 percent when compared to the first quarter of 2009. The region also saw a nearly 80 percent increase in completed foreclosure auctions from the fourth quarter of 2009 to the first quarter of 2010.

April 28, 2010

In the Chicago region, the Home Affordable Modification Program (HAMP) continues to put homeowners into permanent modifications, but after several months of steady growth, the rate of new trial and permanent modifications is essentially unchanged nationally and locally.

April 19, 2010

It is likely that the ongoing financial and economic crisis has left a lasting, negative impact financial stability of many of Chicago’s most vulnerable populations, including communities of color.  Credit scores, bankruptcy filings, and other issues have become increasingly important to long-term financial stability because they directly impact access not only to credit, but also access to basic banking and even employment.

April 19, 2010

It is likely that the ongoing financial and economic crisis has left a lasting, negative impact financial stability of many of Chicago’s most vulnerable populations, including communities of color.  Credit scores, bankruptcy filings, and other issues have become increasingly important to long-term financial stability because they directly impact access not only to credit, but also access to basic banking and even employment.

March 29, 2010

The Obama administration recently announced key changes to the Home Affordable Modification Program (HAMP) and Federal Housing Administration (FHA) programs. These changes address key drivers of foreclosure—unemployment and mortgage balances that are worth more than the property value, also known as underwater mortgages.

March 25, 2010

The foreclosure crisis shows no signs of stopping—in the Chicago region, new filings rose by over 20 percent in 2009. Every foreclosure leaves behind a property that stays vacant for a period of time. Such vacant properties can drain municipal resources, lower property values, and raise crime rates. Since real estate demand remains weak despite record low interest rates and government incentives, it is likely that these vacant homes will remain a burden on neighborhoods—and on lenders’ books—for a significant period of time. Woodstock research has found that lender-owned properties in Chicago take, on average, close to 16 months to be purchased by new owners and are disproportionately concentrated in communities of color.

March 22, 2010

The Home Affordable Modification Program (HAMP) continues to put more homeowners into trial and permanent modifications, but the rate of new trial and permanent modifications is slowing month to month.

February 26, 2010

The low percentage of trial modifications that have become permanent illustrate that the Home Affordable Modification Program, or HAMP, may not be making a long-term dent in foreclosure activity. The Department of the Treasury released its seventh report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first, second, third, fourth, fifth and sixth report cards).

January 29, 2010

The Department of the Treasury released its sixth report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first, second, third, fourth, and fifth report cards).

December 21, 2009

The Department of the Treasury released its fifth report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first, second, third, and fourth report cards).

December 15, 2009

A conference entitled “Mortgage Foreclosure Policy: Past, Present, and Future” brought together leading practitioners and scholars of the foreclosure crisis at the Federal Reserve Bank of Chicago to highlight national and local efforts to combat foreclosures, engage in critical discussion of the causes of and solutions to the crisis, and develop plans to avoid future foreclosure crises.

December 1, 2009

The Department of the Treasury released its fourth report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first, second and third report cards). Eighteen lenders started modifications for less than 20% of their eligible loans, below the national average. Only ten lenders modified more than 20% of their eligible loans. Last month, seventeen lenders modified fewer loans than the national average, while nine lenders modified more loans than the national average.

November 24, 2009

Groups advocating on behalf of Illinois residents threatened by foreclosures recently won two important victories: the approval of a $3 million Cook County budget allocation for foreclosure mediation and the passage of a bill in the Illinois General Assembly empowering municipalities to better address the problem of vacant and foreclosed properties in their communities.

November 18, 2009

The Regional Home Ownership Preservation Initiative, a network of organizations working collaboratively to develop coordinated and robust solutions to the foreclosure crisis, is happy to announce the launch of the Regional HOPI website, www.regionalhopi.org.

Tags: foreclosures
November 16, 2009

The battle for financial services reform is being fought on national and local fronts on issues such as creating a Consumer Financial Protection Agency and ensuring effective local responses to the foreclosure crisis. During its annual Fall Forum, the Illinois Community Investment Coalition brought together some of those on the front lines to reflect on the progress we’ve made so far and outline what’s left to be done.

November 3, 2009

New foreclosure filings in the Chicago metro area have returned to first-quarter 2009 levels after a slowdown in the second quarter, says the latest Woodstock Institute analysis of regional foreclosure activity. This sharp increase likely reflects federal and state interventions that delayed new filings in the second quarter until the third quarter.

Tags: foreclosures
October 20, 2009

The Department of the Treasury recently released its third report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first and second report card).

October 12, 2009

President Obama’s Home Affordable Modification Plan (HAMP) is slowly reaching troubled homeowners—almost 500,000 borrowers have been offered trial loan modifications as of September 30. But, according to a new report from the Congressional Oversight Panel (COP) charged with evaluating foreclosure prevention, one in eight mortgages are currently in foreclosure or default and 250,000 foreclosures are initiated each month.

October 5, 2009

Mortgage loan modifications, like those under the Home Affordable Modification Program (HAMP), that reduce monthly payments are more likely to be sustainable in the long term than earlier modifications, according to the latest Mortgage Metrics Report from the OCC and OTS.

September 18, 2009

The Department of the Treasury recently released its second report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program (see the first report card).

August 13, 2009

New laws giving homeowners more time and resources to get help on their mortgage payments may be slowing the rate of foreclosure filings in the Chicago area, according to the latest Woodstock Institute analysis of Chicago region foreclosure filings.

August 11, 2009

The Department of the Treasury recently released its first report card on how mortgage lenders are doing modifying loans for eligible homeowners under the government’s Making Home Affordable program. Thirteen lenders, as well as 2,300 participants with Fannie Mae- and Freddie Mac-insured loans, started modifications for less than the national average of 9% of eligible loans, while only seven lenders modified more than 9% of their eligible loans.

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