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Events > Mitigating the Negative Impact of Foreclosures

This event was open to the public. Presentation materials and best practices will be published online as they become available.

Past Event

Stabilizing Communities, Addressing the Negative Impact of Foreclosures | July 15-16, 2008

Los Angeles | Renaissance Hollywood Hotel
Hosted by the Federal Reserve Bank of San Francisco

In high-cost real estate markets, the issues facing families and communities affected by foreclosure may be different from those in areas with weaker labor markets or more affordable housing.

This symposium of hands-on workshops provided participants with specific tools and strategies that can help mitigate the negative impact of foreclosures on neighborhoods and borrowers.

Key topics addressed include: strategies that nonprofits and local governments can use to reduce the negative spillover effects of vacant properties, including detailed workshops on strategies and models for converting REO properties to affordable housing; and strategies and tools for reducing the negative impact of foreclosures on borrowers, including credit repair and rental assistance.

The target audience included city government officials, state and local policy-makers, community development organizations, housing counselors, affordable housing developers, lenders, and servicers.

Presentation materials

In addition to the presentations posted here, we plan to develop a conference proceedings document as well as a series of “best practice” tool kits out of the ideas and programs highlighted at the event. Stay tuned!

Full program agenda, including speaker bios (PDF)

Keynote address (HTML)
Janet L. Yellen, President and CEO of the Federal Reserve Bank of San Francisco

 

Addressing the Negative Impacts of Foreclosure: Establishing a Framework for Intervention

In this opening plenary panel, national experts provided an overview of the issues related to the impacts of concentrated foreclosures.

Moderator: Ann Sewill, Community Foundation Land Trust

"Changes in Housing Markets and the Effects on Families, Neighborhoods and Local Governments" (PDF)
Kim Rueben, The Urban Institute

"The Foreclosure Process and Community Loss Mitigation" (PDF)
Frank S. Alexander, Emory Law School

"Learning from the Past: The Experiences of the Home Owners Loan Corporation and the Resolution Trust Corporation" (PDF)
Andrew Jakabovics, Center for American Progress

REO Property Disposition: The Lender Perspective (Not available)
Heidi Coppola, Citibank

 

Using Data and Research to Target Interventions

The scale of the foreclosure crisis requires that municipalities and nonprofits target their interventions to neighborhoods where they will have the greatest impact. The presentations in this session shared methods for how groups can use data to help identify distressed neighborhoods and REO properties.

Moderator: Raphael Bostic, USC

Using Data to Target Foreclosure Interventions (PDF)
Michael Grover, Federal Reserve Bank of Minneapolis

The NEO CANDO Model: Improving Community Action through Neighborhood Information (PDF)
Michael Schramm, Case Western Reserve University

Using Data to Target Interventions: From Borrower Outreach to Property Acquisition (PDF)
Andy Nelsen, Urban Strategies Council


The Servicer/Investor Perspective

One of the challenges for municipalities and nonprofits wanting to buy foreclosed properties is understanding who is responsible for REO property disposition within the bank or servicing agency, and how to negotiate a purchase price or donation. In this session, panelists discussed their internal procedures for working with governments and nonprofits to acquire REO properties, as well as pilot initiatives they are undertaking in cities across the country.

Moderator: Sharon Canavan, Office of the Comptroller of the Currency

David Sunlin, Bank of America (Not available)

Joan Dallis, HSBC (PDF)

Tammy L. Massone, U.S. Department of Housing and Urban Development (PDF)

Zeeda Daniele, Fannie Mae (Not available)

 

Nonprofit Property Rehabilitation

For cities and counties wanting to convert REO properties into affordable rental and homeownership opportunities, nonprofits are likely to be the key partner in rehabbing and managing the properties. In this workshop, leading nonprofits discussed approaches for rehabbing foreclosed properties.

Moderator: Craig Nickerson, Freddie Mac

Renovation Models and Challenges (PDF)
Dale Prunoske, Rural Opportunities Inc, Rochester

Redevelopment through Lending (PDF)
Glennis Ter Wisscha, NHS Minneapolis

REO Rehabilitation and Energy Efficiency (PDF)
Floyd Gardner, NHS Chicago

 

Stabilizing Communities through Foreclosure Prevention

The costs of foreclosure are substantial, both to borrowers and communities, and efforts to prevent foreclosure are critical to ensuring neighborhood stability. In this session, panelists described key strategies for preventing foreclosure and for improving the loan modification process.

Moderator: John Olson, Federal Reserve Bank of San Francisco

National Strategies to Facilitate Loan Modifications (HTML)
Faith Schwartz, HOPE NOW Alliance

Engaging Communities in Foreclosure Prevention (Not available)
Lori Gay, NHS Los Angeles

Delinquent No-Contact Borrower Outreach Initiative (Not available)
Rick Harper, CCCS of San Francisco

Working With Lenders to Prevent Foreclosure (Not available)
Edward Delgado, Wells Fargo

 

Innovative Strategies for Stabilizing Communities

Several municipalities and nonprofits have developed innovative strategies for converting REO properties and stabilizing communities. In this session, panelists presented these established and emerging strategies along with the challenges and best practices that have emerged from their experiences.

Moderator: Linda Ortega, Federal Deposit Insurance Corporation

Models for Reusing Distressed Properties (PDF)
Floyd Gardner, Neighborhood Housing Services of Chicago

Massachusetts: A Multi-Pronged Approach to Addressing the Foreclosure Crisis (Not available)
Rebecca Regan, Boston Community Capital

Preserving Neighborhoods: Mitigating the Foreclosure Crisis in Los Angeles (Not available)
Mercedes Márquez, Los Angeles Housing Department

Fostering Innovation: Strategies for Addressing Foreclosures from Across the Country (PDF)
Tamir Novotny, Living Cities

 

Converting Foreclosed and REO Properties into Community Assets

Governments and nonprofits are examining the possibility of acquiring REO properties and converting them into affordable rental and homeownership opportunities. In this workshop, learn about the key issues and strategies for acquiring and returning REO properties to productive use, including financing, holding strategies and models for property redevelopment.

Moderator: Scott Turner, Federal Reserve Bank of San Francisco

REO Property: The Second Wave of the Tsunami (Not available)
Frank Ford, Neighborhood Progress Inc., Cleveland

Stabilizing Neighborhood Landslides: A Strategy to Keep Families in Place (Not available)
Joe Rowan, Funding Partners for Housing Solutions, Colorado

San Diego Land Bank: A Community Partnership Approach (PDF)
Jim Bliesner, San Diego City/County Reinvestment Task Force

Foreclosed Property Initiative: The Coalition Model (Not available)
Paul Harris, Local Initiatives Support Corporation, Phoenix

Lessons Learned through REO Programs (PDF)
Richard Pine, Enterprise Community Partners, Dallas

 

Community Preservation: Strategies for Addressing Vacant Properties

This session examined innovative approaches to ensuring that vacant and foreclosed properties do not have a negative spillover effect on the neighborhood. Attendees learned how city governments, nonprofits, and servicers are addressing the issues associated with vacant buildings; gained a better understanding of the foreclosure process; and obtained ideas about how to lessen the decline of neighborhoods that have the highest numbers of foreclosures.

Moderator: Alan Mallach, The Brookings Institution (PDF)

Strategies for Identifying the Property Owner and Maintaining Contact with Institutional Owners (PDF)
Peter Lemos, City of Stockton

Managing Vacant Properties Before and After Foreclosure (Not available)
Sherilee Massier, Wells Fargo

Lessons Learned from Using Ordinances to Ensure Property Maintenance (Not available)
Doug Leeper, City of Chula Vista

The Role of Property Managers in Maintaining Foreclosed Properties and Bringing Them to Market (Not available)
Raymond Eshaghian, Raymond Realty Group

 

Assisting Borrowers After Foreclosure

This workshop was designed to build a better understanding of the range of issues that former homeowners and renters are facing as a result of foreclosure, and the strategies and resources for helping them recover. Speakers addressed questions such as: what happens to borrowers after foreclosure, what are the specific tools for recovery and resettlement, what is the process for repairing damaged credit, and what legal rights do foreclosed borrowers have?

Homelessness Created by the Foreclosure Crisis (Not available)
Tanya Tull, Beyond Shelter

Beyond Intervention and Mitigation: An Overview of the Foreclosure Cycle (Not available)
Gabe del Rio, Community Housing Works

Housing Relocation Strategies: Flexible Tenant Selection Criteria (Not available)
Malcolm Bennett, International Realty and Investments

Reaching Borrowers in Need of Credit Repair (Not available)
Michele Johnson, CCCS Nevada

Understanding the Legal Rights and Options of Foreclosed Borrowers and Tenants (Not available)
Amrita Mallik, Public Counsel

Services Available for Getting Borrowers Back on the Economic Ladder (Not available)
Jeff Schrager, No Homeowner Left Behind

 

Looking Forward: Financing Long-Term Homeownership Affordability

Homeownership remains a major goal for low- and moderate-income households. Learn how governmental agencies, CDFIs and nonprofits are developing innovative products and programs to help stem the foreclosure crisis by helping families access responsible credit and financing for homeownership and by promoting the long-term affordability of housing.

Moderator: Jim Park, New Vista Asset Management

Financing Affordable Homeownership in a Tightened Credit Market (PDF)
Craig Nickerson, Freddie Mac

The Lease to Purchase Model: Creating a Path to Affordability for REO Recapture (PDF)
Steve Zuckerman, Self-Help

Using NMTC to Develop Shared Equity Homeownership in Washington, D.C. (PDF)
Colin Bloch, BlochWorks

Helping to Finance the Purchase of Foreclosed Properties: The CalHFA Community Stabilization Home Loan Program (HTML)
Gary Braunstein, California Housing Finance Agency

 

National and State Strategies: Supporting Local Efforts to Address Concentrated Foreclosures

A number of efforts are underway to direct resources and technical assistance to neighborhoods and cities affected by concentrations of foreclosures. Panelists described national and state efforts to mitigate the impact of foreclosures and will provide updates on the status of federal legislation that is designed to assist local communities in stabilizing neighborhoods.

Moderator: Barry Wides, Office of the Comptroller of the Currency

Doris Koo, Enterprise Community Partners (HTML)

Mary Burkholder, Local Initiatives Support Corporation (PDF)

Eileen Fitzgerald, NeighborWorks America (PDF)

These materials can also be accessed through the Federal Reseve Bank of San Francisco's web site.