Foreclosure Prevention Gains Little Ground

"It’s clear that servicers are not getting the job done. Almost as many homeowners have been allowed to drop out of the program as have been helped by it, and nearly a million homeowners are eligible for the program but can’t be helped because their servicer is not participating. Congress and the Administration need to look at requiring servicers to participate and adhere to strict foreclosure prevention guidelines. They should also enact proposals to create a broad scale principal reduction program as well as expand assistance to unemployed homeowners, as Senator Casey’s amendment to the financial reform bill would do," continued Taylor.

The addition of new data is helpful, but even greater transparency is needed in the HAMP process. For example, race and other forms of discriminatory treatment may play a role in the servicing process, as supported by recent research. Better information about the sustainability of loan modifications over time would also be helpful," said Taylor.

A recent study of loans in the Washington, DC area by NCRC found that African Americans were almost 20 percent more likely and Latinos were 90 percent more likely than white borrowers to go into foreclosure, even controlling for credit score, and other neighborhood, loan and borrower characteristics. A survey of loan counselors by NCRC similarly found race disparities in the loan modification process.


The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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