Informing the public about the Federal Reserve
What is the Federal Reserve doing to help stabilize neighborhoods in the wake of the foreclosure crisis?
Neighborhood stabilization focuses on the impact of foreclosures beyond the individual homeowner and his or her family; neighbors, communities, and municipalities all share the consequences of foreclosure. The Fed supports neighborhood stabilization efforts in a number of ways:
In January 2012, we issued a staff paper (PDF) entitled "The U.S. Housing Market: Current Conditions and Policy Considerations," a framework for thinking about certain issues and tradeoffs that policymakers might consider to restart housing markets and help stabilize neighborhoods.
We supported NeighborWorks America's efforts to educate community development practitioners and public officials on neighborhood stabilization issues, including the development of stablecommunities.org , which provides community leaders with the latest information and resources on neighborhood stabilization.
We created the Mortgage Outreach and Research Effort (MORE), a collaboration between the 12 Federal Reserve Banks and the Board of Governors that combines expertise to inform and engage policymakers, community organizations, financial institutions, and the public at large on foreclosure issues. One result of this project is the foreclosure resource centers available on all of our websites.
We clarified Federal Reserve regulation related to the management and disposition of bank-owned residential property (REO) in a Questions and Answers letter (PDF) to examiners and issued a policy statement related to rental of REO by financial institutions.
We have led numerous efforts to highlight best practices for dealing with neighborhood stabilization issues, including our December 2011 conference, Putting Data to Work: Data-Driven Approaches to Strengthening Neighborhoods, and publication; and our September 2010 REO and Vacant Properties: Strategies for Neighborhood Stabilization conference and publication (4.6 MB PDF).
- We produced a series of video reports that highlight promising stabilization efforts in three cities: Cleveland, Phoenix, and Detroit. These short, documentary-style accounts showcase innovative efforts by community leaders to target limited resources where they will have the greatest impact.