2008 Annual Report: Breaking the Housing Crisis Cycle
A plan for breaking the housing crisis cycle is emerging from the epicenter of the nation’s foreclosure meltdown. In its just-released annual report, the Federal Reserve Bank of Cleveland is calling for a multi-faceted approach that aims to address the interconnected problems that have led to too many Americans losing their homes and too many neighborhoods falling into disrepair. Download the full report (PDF)
Essay: Breaking the Housing Crisis Cycle
Since 2006, the U.S. housing markets have struggled, and Americans have been losing their homes at extraordinary rates. New foreclosures in Ohio alone during the past three years total 170,000—almost as many housing units as in the entire city of Cleveland. The institutions, market forces, and nonprofit community groups that normally come to the rescue of distressed homeowners and their neighborhoods have been overwhelmed with the growing scope of the problem. Read more
Print Story/Press Release
In its annual report, released today, the Federal Reserve Bank of Cleveland documents how the housing crisis cycle unfolded differently in its district than it did in other parts of the country. The Cleveland Fed also is proposing a multi-faceted approach to breaking the cycle that focuses on the interconnected nature of the problems that led to the crisis. Read more
Broadcast-Ready Scripts/Sound Bites
Use these broadcast-ready scripts and sound bites on the foreclosure crisis and proposals for breaking the housing crisis cycle.
Part 1: How the Foreclosure Crisis Unfolded in the Fourth District
We didn’t suffer from the crash of hyper-inflated housing prices, as people did in California, Florida and other overheated housing markets. We suffered from over-lending.
Part 2: Our Proposal for Breaking the Housing Crisis Cycle
The focus should be on a set of coordinated, long-term policies that target multiple points in the housing crisis cycle.
- Loan modifications
- Convert some of the excess housing stock to rental property.
- Land banks are another useful tool for helping local governments deal with the problem of abandoned homes.
- Robust code enforcement.
- Recapitalize the banking system.
A Walk Through the Housing Crisis Cycle
A plan for breaking the housing crisis cycle is emerging from the epicenter of the nation’s foreclosure problem. The Federal Reserve Bank of Cleveland calls for a multi-pronged approach that aims to address the interconnected issues that caused too many Americans to lose their homes and too many neighborhoods to fall into disrepair.