Understanding Government

Four years after the housing bubble burst, all levels of government are getting their bearings in addressing the foreclosure crisis. A mix of programs are either being started or revived that might actually address specific payment problems homeowners face.

Illinois announced on Friday that it will use $100 million in federal money to start a Mortgage Resolution Fund, where a public-private partnership will buy “underwater mortgages” — those where delinquent payments are worth more than the mortgage itself — from homeowners in the Chicago area. (more…)

In Chicago and across the U.S., crime is down.  Why don’t people want to admit it?

According to all available statistics, violent crime has significantly dropped in Chicago and across the country over the last 20 years.

FBI statistics say there were 931 homicides in the city of Chicago in 1993. By 2000, there were just 628 murders – and by 2010 that number was down to 435. In fact, the murder rate in Chicago last year was the lowest it has been since 1965.

This is a national trend. (more…)

Illinois Attorney General Lisa Madigan and California Attorney General Kamala D. Harris have subpoenaed two companies, Lender Processing Services and Nationwide Title Clearing, that helped mortgage servicers manage home loans, reports Ruth Simon and Nick Timaros of the Wall Street Journal. The subpoenas signal expanding the state attorneys general investigation into mortgage servicers who “robo-signed” documents that put homeowners into foreclosure.

The scandal erupted last fall, triggering a joint investigation by 49 states attorneys. The U.S. Justice Department and Housing and Urban Development have largely stayed on the sidelines, but the Journal reports that federal agencies could also make claims against robo-signing banks.

Underwater homeowners facing foreclosure despite promises of federal aid disrupted a  meeting of Wells Fargo Bank shareholders in San Francisco yesterday, reports Aaron Glantz of The Bay Citizen.

Demonstrators called on the firm, a recipient of emergency taxpayer aid during the financial crisis, to institute a foreclosure moratorium. Eight were eventually arrested after refusing to leave the building. (more…)

As part of this year’s last-minute federal budget agreement, U.S. Housing & Urban Development lost $89 million in housing counseling funds. The Chicago Tribune’s Mary Ellen Podmolik reports on the impact this could have on the Chicago area.  For starters, fewer social service organizations will have the resources to provide counseling to distressed homeowners trying to avoid mortgage relief scams.  And some foreclosure prevention and rental counseling programs previously offered free will now cost money. “Losing $35,000 is a big hit for us,” Brian White, executive director of the Lakeside Community Development tells Podmolik. “You’re cutting out muscle and bone instead of fat.” That can be said generally of the budget agreement’s focus on domestic discretionary spending, while leaving entitlement and military spending largely intact.