We must learn the right lessons, not the wrong lessons, from the subprime mortgage crisis.
In the years before the capital markets fueled a subprime deluge and bad money chased out good, a range of policies and programs effectively created sustainable, affordable homeownership. Participants in these programs were much more likely to sustain homeownership than comparable borrowers in subprime loans, even as economic conditions worsened. Proven on the ground, these programs point to a way forward that provides access to affordable homeownership for those who are ready for it. Their record also helps put to rest the myth that lending to underserved communities–as opposed to poor lending practices–drove the crisis.
At this CAP forum, experts will examine evidence derived from close analysis by researchers at the Center for Community Capital at the University of North Carolina, the Urban Institute, CFED, the Federal Reserve Bank of San Francisco, and elsewhere. This research demonstrates that we do know how to do affordable lending that works. Panelists will discuss how this research should inform the discussions of the system of housing finance for the future.
Sarah Rosen Wartell, Executive Vice President, Center for American Progress
Raphael Bostic, HUD Assistant Secretary for Policy Development and Research
Roberto Quercia, director, Center for Community Capital, University of North Carolina at Chapel Hill
Ida Rademacher, Research Director, Corporation for Enterprise Development (CFED)
Caroline Ratcliffe, Senior Research Associate in the Urban Institute
David Abromowitz, Senior Fellow, Center for American Progress
For a full transcript click here.