New American Prospect Report On Foreclosure Crisis Reexamines Root Causes, Outlines Reform

Release Date: 
May 23, 2011

New York, NY – The housing market is heading toward a "vicious cycle" according to economists, as big banks and lenders take ownership of more foreclosed homes. New numbers in a report by RealtyTrac showed that lenders own more than 872,000 of these foreclosed properties, and could take possession of several million more.

View The Report: 

A comprehensive special report published in the new issue of The American Prospect fights to reignite the discussion about what can and is being done to help families keep their homes. The report examines both the root causes that led to the crisis and lays out policy changes that would return order to our banking system -- and restore homeownership to its place as the anchor of American prosperity.

The report, "The American Dream Deferred," is published jointly by The American Prospect and the New York-based think tank and research center Demos, with support from the Open Society Foundation, The Annie E. Casey Foundation, and The Arca Foundation. Edited by Prospect co-founder Robert Kuttner, it contains articles from leading scholars, authors, and lecturers, including:

-- Barry Zigas from the Consumer Federation of America, on government initiatives that would promote sustainable homeownership.

-- Mike Konczal from the Roosevelt Institute, on banks' deceptive foreclosure practices, and the need for a stronger consumer protection plan.

-- Dan Immergluck, author and professor at Georgia Tech, on the future of Fannie Mae and Freddie Mac.

-- Alyssa Katz, author and professor at Hunter College, on programs to support mortgages for moderate-income buyers.

-- Marcus Stanley from Americans for Financial Reform, on the failures of Obama's struggling Home Affordable Modification Program.

-- James H. Carr from the National Community Reinvestment Coalition, on safeguarding mortgages for middle-class Americans.

-- Rebecca Ruiz from The American Prospect, on grassroots activists' efforts to stop foreclosures in their communities.

To interview any of the report's authors, please see contact info.