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Full-Text Articles in Law
Over-Indebtedness, The Subprime Mortgage Crisis, And The Effect On U.S. Cities, A. Mechele Dickerson
Over-Indebtedness, The Subprime Mortgage Crisis, And The Effect On U.S. Cities, A. Mechele Dickerson
Fordham Urban Law Journal
This article discusses the rise of consumer debt in the United States, and argues that relaxed lending standards resulting in more people buying unaffordable homes. The current financial crisis and its effects on homeowners are examined, as well as policy responses to the crisis. The author suggests that instead of waiting for federal bailouts, localities take proactive steps to prevent the crisis from destroying their cities. Finally, the article stresses that the crisis threatens to leave urban areas with a significant number of abandoned homes and that an increase in distressed neighborhoods may reverse years of urban renewal projects.
Reducing Home Mortgage Foreclosures In A Predatory Lending Environment: A Case Study Of Mid-Sized City In Central New York, Sandra Phillips
Reducing Home Mortgage Foreclosures In A Predatory Lending Environment: A Case Study Of Mid-Sized City In Central New York, Sandra Phillips
Fordham Urban Law Journal
This article discusses the growing problem of predatory lending, particularly in low-income, inner city neighborhoods, with a case study of communities in Syracuse, New York. The author documents mortgage lending activities and foreclosure patterns in central New York and argues for continued education throughout the home-buying process. A program that reduced foreclosures in low-income urban neighborhoods is discussed. The article also identifies red flags for those involved in the eradication of predatory lending to be altered to, and examines recent federal legislation to strengthen mortgage lending guidelines and reduce foreclosures. The author concludes that Congress should support foreclosure-prevention education initiatives.
Rewriting Contracts, Wholesale: Data On Voluntary Mortgage Modifications From 2007 And 2008 Remittance Reports, Alan M. White
Rewriting Contracts, Wholesale: Data On Voluntary Mortgage Modifications From 2007 And 2008 Remittance Reports, Alan M. White
Fordham Urban Law Journal
This article examines voluntary efforts by mortgage servicers to resolve the mortgage debt overhang by renegotiating mortgage terms with borrowers. Data from national reports on mortgage modifications, as well as from monthly remittance reports by mortgage servicers to their investors is analyzed. The author provides background of the voluntary plan to resolve the subprime mortgage crisis and previous reports on voluntary loan modifications, and presents data on loan modification outcomes. The author concludes that the voluntary mortgage renegotiation plan, while significantly reducing hardship for individual homeowners temporarily, does little to get at the underlying problem of debt overhang. Furthermore, that …