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FEDERAL
RESERVE
BANK
OF ATLANTA
VOLUME
....
17 , NUMBER
2 , 2007
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LouisianaSpeaks
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Don't Bet
the House
Is Bankruptcy
Reform
Legislation
Working?
Predatory
Lending and
the Military
part ners
in commun i t y a nd e conom ic d e velo p m e nt
PAGE
1 2
Don't Bet the House
I lonw mortgag<' f"orC'closures art> at n•cord lt•n• ls
across tht' c-ountr.v because' of rising intNest rat C's
and dPc l ining honw \·alues. Emory law prof"C'ssor
Frank A IC'xancln gi\·es ac!Yi ce to homPo\\·nNs on
how to stan' off finandal pitfalls.
PAGE
1 4
Is Bankruptcy Reform Legislation Working?
ChangPs to tlw t ·.s. Bankruptcy ("()(IC' in :WO;i yit• lcl
mixPcl rC'sul ts in i>oth the numbC'r of consumt'r filin gs
by stall' ancl tlw PffC'cliwness of its c-rt•dit c-ounscling
rC'quirl'mC'nt S.
PAGE
PA G E
2
Transitioning Youth from Foster
Care to Successful Adulthood
1 6
Predatory Lending and the Military
Effl'c-th·C' (ktolwr 1, a new la\\·, thl' \\'anwr Ac-t ,
will protpc-t sl'1YicPmen and \\·onH'll ancl thl'ir
famili<'s from pr('(latory lending prac-ticPs.
Foster youth aging out of the syste m face
many barriers that limit th eir oppo rtuniti es
for econ omic success. Th e Jim Casey Youth
Opportuni ty Initiative illustrates a comprehensive strategy to engage communit y and
PAGE
1 8
Free Tax Sites Generate
Refunds for Nashville Families
T lw
I
as ll\' il ll' \\'pa lt h Bui l d i ng AllianC'C' is ai> IP to
help t ho usands o f fam ilies c lai m thl' ir f"Pclna l t ax
business leaders in addressing this issue.
FEATURES
PA G E
7
LouisianaSpeaks
In the \rnke of hu rricanes Katrina and Hila, thousands
of Louisiana cit izens take part in a un iqu<' n•gional
planning process that is \\·orking to t'nsurP tlwi r \·oiees
are' heard in the rebuilding C'ffo11s.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rC'f"un cl s in 200(i.
PAGE
2 0
Spotlight on the District Alabama and Georgia
Complexities of Community Development Finance
In theory, lhe concept "community clevelopmenl finance"
coverage and max imu m
suggests a broad sel of acthities lhal usually i ncludes
loan-I o-rn lue guide l ines,
innornti\·e, flexib le financial products designed to chan -
lencic'rs must also address
nel inn'stments into clisadvantagecl commwlities where
no nt raditio nal fac to rs to
m,ffkels don't func l ion well on their own.
miti ga l <' l he level o f ri sk
of each brownfield proj C'ct.
!l ow the concep t p lays out in pract ice \·ariC's wide ly
clepencling on lhe needs of the community ancl lhe
When using different layers
resources availab le. Some practitioners view comm u-
of fin ancing, it is import ant
ni ty ckvelopnwnt fin ance th rough a lens of affordable
to understcrnd the guidelines of each product including
housing, w hile others tllink more in I erm s of small busi-
terms, conditi ons and lim itations of gu,.mrnl<:>e. It is also
nC'ss ent<:>q)rise de\·<:> lopment. But r<'ganUess of tlw per-
Clil ical to determine 1he level and class of contamina.nls
spC'ct i\·e, clevelopnwnt ancl financC' organizations musl
fo un cl in a specific sitP through sitP ancVor soil sampl<'
join forces to address risks an d challenges.
assessmen ts p1ior lo consummati.t1g a deal. F\utherm orP,
lenclers shoul d mitigate their liabil ity by complyi.t1g with
One of the most important tilings I've lea.med in my yea.rs
specific criteria that protect them from l he C'ompreh<:>n-
of community development e>,,1)<:>ri<:>nce is that the 1isks
sive Environmental RPsponse, Compensation, and Lia-
ancl chal lmges diff<:>r- someti mes grca.tly---even among
bil ity Acl (C ERCLA).
si milar deals. It is t herefore extremely important to
und<:>rsta.nd the potential problems ancl benefits of a
The EPA has taken a proacl i\·e ro le to inform lenders of
pa1iicula.r project when approaching fin ance. A comb i-
U1e sl PPS requi.t·ed to establish exemp t ion from CERCLA
nati on of nn ancing products that complement each other
liabil ily. The Federal Rese1ve Bank o f Atl anta recently
helps to mitigate the IC'\'el of risk crnd improve the long
held a foru m with the EPA and industry professionals in
lerm \iability of each project.
ou r New Orleans Branch to help educalP lhe local banking comm unity. Ol lw r forums of this IYJ)P are p larnwd
RPnewing brownfiPld sill's seems to be one of tlw mosl
throughout th e country.
challPnging community developnwnt acthities. According lo the Emironmenta.1 Protection Agency (EPA ), a
The A tl anta Fed enco urages fin ancial institutions to
brownfiP ld is " rpa J property, the expansion, reclPvclop-
parti cipate in such trai ning programs l o gain a deeper
menl, or rPUSP of w hich may be complicated by llw prP-
und prstanding of bol h l lw oppor tun it iPs and the com -
sencP or potential presence of a hazard ous substance,
plcx ili es associated w ith unique com mu nity cle\'e lop-
poll utant , or contam inant. '' The
t ·.s. has approx imately
me nl finance deals. Thi s tY])e of trai ni ng wi ll enablP
4:'i0,000 brownfi<:>lds, many of which arP located in or
banks lo sel up strong program s that Pnsure proper cluC'
,war industri al parks.
clili gm cP in assessing ancl miligaling IPnci<'r risk.
Tlw large number o f sites and the potPnlial fo r redP\'elopnwnl present fma.ncial institutions wi th great opportunil ies. But banks musl be acutely aware of the illll11C'ciial e
and inherent risks associated with these types of deal s.
In aclclition to app ly ing stanclarcl ban k underwriting
Juan C. Sanchez
principles such as analysis of cash fl ow, debt service
Comm uni ty Affa.i.t's Officer
FEDERAL
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Federal Reserve Bank of St. Louis
BANK
OF
ATLANTA
one
-
TraDsitioning Youth from Foster
· · Care to Successful Adulthood
1
: -: •
t W0
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Federal Reserve Bank of St. Louis
OLUME 17, NUMBER 2
FOSTER YOUTH AGING OUT OF THE SYSTEM HAVE BECOME ONE OF THE
COUNTRY'S MOST VULNERABLE POPULATIONS.
Tlwrc ar e curTC' nt ly about :5 00,000 children in fos ter
cl o not haH' a clri\·er's license. \\·hich again limits th eir
cart' across t hC' co unt ry. Eac h y(' ar, ap p ro x illl at C' ly
j ob oppo11unities. Third , mmi y youth do not ha\"C' acccss
20,000 youth, dC'C' mcd IC'gal adult s at age 18, "agc out "
to basic lw alt h care.
o f th e roster c-m·e systC'm. Whil e thc number of children
Fou rth , th ey do not h,n-e the finan cial rcsom ces needcd
in th e foster ecu-C' systelll has been ckclinin g, the nulllber
to sC'cun' housing. Thes(' ymmg pC'ople do not hm·e sup-
o f youth aging out o f th e system cont inues to i ncn',L'>C'.
port iH' adu lts wh o can co-sign on an ap,u-tment le,L'>P or
Mos t young pC'opl C' at age 18 sti ll rc,Jy on fa mi ly and
help th cm w ith rent deposits, so housi ng is always a sig-
colllmunit y suppor t to help them tran siti on in to adu lt-
nificant c·oncc'm. Finally, tlwse youth hm·c, no financi al
hoo d. Fos t er yo u! h, ho w eve r. han' no pe rm anent
safrty rw t, ,md many lac k ba5ic lifr ,md fin ancial rmmagc'-
fami ly o r suppo rt nC' t \1·ork t o ass ist t hC'm as tlwy agC'
ment skills. Owrcoming these bm-riers and helping th cs0
out o f thC' systC'm, and only limit C' d assistance' is ,n-ail-
young p0op le achieH' eco nomic succ <'SS is critical for
abl 0 fro lll th C' st at0s t o suppo rt th C' ir transi ti on t o
stabi l izing this ve ry n tl nerabl e population .
ind cp(' tHl ence. i\l any of th ese yo un g peo p le han'
lilllit 0d c' ducati on, fpw basic skill s and no ro le' moclels
Resources for youth aging out of foster care
Govt>ni nw nt o ffi cials, foundati ons and n 's<>rn·c-hers ,m'
or adult nlC'ntors.
increasingly recognizing th e challenges th at youth aging
The issue
out of foster car e face mid the need for gr0atc>r resources
Young people !0m·ing foster can' fac0 rrnmy lllore chal-
to prc'JKm' them for th e adult w orld. Tlw largPsl fec!Prally
lC'ng('S tha11 their pc'C'rs who come from support i\'C' frnni-
fu nded prog r<ml to assist these young pc'opll' is the .John
l i0s. ResParc-h indi ca tes th at four yPars aft n !Paving
H. ChafC'P (Chafee) Fost Pr C,u·e Inclepcnci<'nc·<' Progr,u11.
fostc'r cme, -Hi 1)('rcC'nl of these youth hm·e not linislw d
Cn 'al <'cl in Hl99, thi s program prmicl <'S stat cs \1·ith fund-
h igh school, 2:5 pc' n 'C'nt hm·e bC'C'll honlC'IC'ss, -t 2 percC'nl
ing to cr0atc mid exp,md progrmn s to assist youth tnm-
hav<' become parpnt.s themselves and fpwer than 20 pe r-
si t ioning ou t of fos t<' r ca re, up t o agP 2 1. State s are
sel f-supporting 1•
rcqui rc•d to pro\·id C' a 20 pncent local matc h for tlw
cent ,u·c, complC'lc' iy
Cc'nsus data show that only :3 pC'rc·c,nt of young people
\1·ho agC' out o f thC' fostC'r care systcm are li kely to finish
fe deral fund s.
Chafr'e funds m·e fkxible, and states u m tailor progr,UlL'>
collC'gc•, compm·ed with 28 percent o ft he l '.S. population.
to me<'t t lw specific needs of their foster youth populati on.
Young pC'oplC' IC'aving fostC'r cm·e disproportionately suf-
Sta t C's ha ve cl e\·e loppd a range o f S(' JYicps inc-l uclin g
fer fro m mental ,me! other heal th problellls mid ar e more'
educal ional programs, training, employm t>nt assist,m c·c'
lik 0ly to be irl\"o h·C' d w ith crimina l ac ti\·iti es. Th 0se
an cl fi nancial support to help those leming fost er care
youth ar0 oft en VC't y isolated mi d face a future of li1ing
to beco rnC' healthy, se l f-sufficient adu lts. Whi le t hcsP
in poverty.
funcls hav<' helped state's acl clress some or th e neecl s or
youth aging out o f thC' foster cm·e system, tlw fund ing is
Barriers to economic success
not sufTi c-iC'nl to pro\·iclC' lhC' comp relwnsin' assistance'
You ng people corning out of thP fos tPr care sys t0m
face' a nu mber o r barri ers that lim it th eir opportunit ies
neeclC'd by th ese yo uth .
Th P .Jim Casey Yo ut h Opportuniti C's Initi ati ve ( tlw
for ('conomic success. First, they o ft en hm·e low educa-
"Initiath·C'") is mi oth er significant resource to assist youth
ti onal at tainnw nt and no w ork experi ence, so th eir j ob
lea\·i ng th C' foster ca re' sys tem. T his nati ona l program
opportun ities arP li mited. Second , many o f till'SC' youth
brings togC' th c r pcop le ancl r eso urces to help yo uth
FEDERAL
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Federal Reserve Bank of St. Louis
BANK
OF
ATLANTA
I hr e e
make the connections they need to assist with education,
employment, health care, housing and suppori i ve relation-
Ymmg people between the ages of 14 and 23 are eligible
to participate in the Oppmtunity Passport program if
ships. Th e Initiati ve is currently w orking in 10 commu-
th ey ar·e in th e child wclfar·e system on th eir 14th birth-
niti cs across t he coun t ry i nc luding A tl anta, Nash vill e
cl ay ar1cl have successfully completed the required iinan-
ancl Tampa (a co-investment si Le w ith I hr Ecke rd Farnily
cial literacy traini ng. About 2,000 youth arc enrolled in I he
Foundati on). In all conummilies, the Initiative encomages
Oppmtlmity Passport prograr11 nationwiclr , and LogN her,
youth r ngagement, and local coorclinal ors Lo work in U1eir
they have sawcl almost $1.5 million through IOAs.
communiti es to deYelop partnerships and resources
Th e slruct urc o f th e m at ched savin gs acco unts is
to provid e a safel y net for those transiti oning out of
different in each conmrnnity in ter ms o flhe ar11ounl the
foster car·e.
youth car1 sm·e, the ar11ow1t of th e local match ar1cl th e
Th e center piccr of the I nit iati ve is the> Opportunity
assets th at can be purchased. Ilowcve>r, th e most com-
Passport '", wh ich is designed t o creatr new oppor tu-
mon asset goa l for the youth is a car, fo llowed by rent
niti es and fin ancial reso urces for yo uth Iraving foster
deposits, educati onal expenses ar1cl health car·e expenses.
care. T hr goal o f the program is Lo hel p young people
Th e num ber o f youth reaching Lhrir savi ngs goal nati on-
leaving fost er car e:
w ide is continuing to increase.
• to become linancial ly literate,
• to gain experi ence using the ma.inst ream
banking system ,
• l o bu ild assets for education, housing or other
e;,.,_rpcnses, at1cl
• Lo receive streamlined educati onal and vocati onal
assistance.
Fostering Success provides services to Nashville youth
Each year, th e> Tennessee Department o f Chilclrr n 's
Sen ices estim at es t hat 200 youth age out o f th e fost er
car·e system in Davidson Cmmly , ar1d many encl up incarcerated o r homelrss. Th e Fosterin g Success program
launched in Nashv i ll e, Tenn., al Va nde r bil t University
in 2002 providrs fo rm er foster care youth access Lo education, emp loyment, transpo rtati on, housing and olhr r
"DOOR OPENERS" CONNECT YOUTH
oppo rt un iti rs th ey need to beco me success ful adu lts .
Jim Casey You th Opport uniti es Initiat i\·e pr O\ided th e
f AGING OUT OF FOSTER CARE TO
i nitial fund i ng fo r th e program .
Foster ing Success is a col laborati\·c effort o f many
HOUSING, JOBS, MENTORS AND
pariners including Vand erbilt Cniversily, th e Tennessee
OTHER OPPORTUNITIES THAT
Mr trop o lit an Nas l1\·i ll e and se veral o ther n onpro fi t
Departm r n t o f Chil dren's SerYi crs, L: nit ed Way o f
agenc ies in
WILL HELP THEM GAIN FINANCIAL
ashvill c. T he collaboralivr also recrives
signilicanl suppo1t fro m community ar1d business lcadr rs
across the city who offer assistance and resources Lo
INDEPENDENCE.
support youth aging out of th e foster care sys tem.
Thi s i\ l idd lr Tennessee program srJYes youth facin g
barri ers to economi c success common am ong yo uth
The prograr11 includes Uu·ee components: (1) personal
aging out of th e fost er car e syst em nat ionwid e. I ni ti al
debit accounts for shmi-Lerm expenses, (2) matched
surveys of form er foster youth enro ll ed in Fost er ing
savings accounts or Individ ual Development Account
Success indi cated that l in 3 youth did not have a GED
(IDA) and (3) "doo r opene rs" or servi ces th at conn ect
and th e maj or it y did not have access to transportati on ,
y outh aging out of fost er car e to ho usin g, jobs, m en-
whi ch is crit ical fo r fi nding a j ob.
tors and other oppor tunities th at w ill help th em gain
finan cial i ndepe nd ence.
fou r
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Federal Reserve Bank of St. Louis
Th e Opportunity Passp ort, a central initi ative of Fostering Success, is admi nister ed by Monroe Hard ing, a
VOLUME
17 ,
NUMBER
2
nonprofit agency in
ashville that has developed a one-
The Jim Casey Youth Opportunity Initiative illu trates
s top shop for youth transitioning out of foste r care.
the type of comprehensive strategy that is needed to
Curre ntly more than 225 youth ar e e nrolled in the
engage community and business leaders in helping the e
Opportunity Passport, and 160 yo uth have met the ir
yo uth transition out of foster care to become healthy,
savings goals a nd purchased asse ts worth $165, 000.
produc tive and financially self-sufficient adults.
♦
Opportunity Passport offers a 100 pe rcent ma tc h for
savings up to $1,000 each year fo r 3 years. The ave rage
This article was written by Jessica Le Veen Faff, regional community development manager in the Atlanta Fed's Nashville Branch.
match is $525. Most youth save for cars, housing, educatio n a nd insura nce. U.S. Bank has been a key s uppo rter of this initiati ve in Nashvi ll e, hosting the IDA
acco unts for foste r yo uth and providing those enroll ed
in the program with a personal bank account for their
s hort term expenses.
The impact of Fostering Success has been s ignifi cant for forn1 e r foster care youth in Nashvill e. Through
th e Opportunity Passport, ma ny have gained so me
fin a ncial stability. Follo w-up s urveys of partic ipa nts
in the program indi cate that 53 percent of program parti cipants are no w li ving ind epe nd entl y; 25 pe rcent
Endnotes
1
Based on data from the U.S. Department or llealth and lluman
Services and the Jim Casey Youth Opportunit y ini tiative.
2
Thi s data are all based on t hose w ho r esponded negative ly
to th ese ques ti ons initially; it is not based on ever yo ne w ho
is enroll ed in th e Opportunity Passport prog r am. Thus, o f
those wh o wer e not liv ing independently, 53 percent ar c now
li ving independently an d o f those w ho had not finished high
school/GE D, 25 percent have now comp leted high schoo l or
earned their GED.
ha ve finish ed hi gh school or earn ed their GED ; a ncl
23 pe rcent have completed some training or education
afte r high school." Clearly, the prospects for youth who
pa rti cipate in this initia tive are improving.
Th e s uccess of this initiati ve has turned it from a
pi lot proj ect into a s us taina bl e co mmunity colla bo rali \'e. Currently, Fostering Success partners are exp lo ring op ti ons to expa nd the initia l i\'e ac ross th e s ta te
within the next three years.
Conclusion
Young people aging o ut of the foster care system face
many of the sam e ba rriers as other youth canting from
im poverished fami lies, but they lack th e traditi o na l
fa mi ly and community s uppo rt to help them trans it ion
into adulthood. As a result, fo rm e r foster care yo uth
oft C'n face a ve ry blC'ak futme of unemployment , poverty
;;rncl homeless ness. Funding to assist these youth
i limited, but there is grovving recognition that
he lping the m as th ey leaYe the fos te r care
system will reduce the futme cost
to society.
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Federal Reserve Bank of St. Louis
I
Affordable Housing for Former Foster Youth
Finding affo rdable rental housing is a significant
This is
ashville's first step toward providing safe,
challenge for youth aging out of the foster care system.
affordable housing for 18- to 23-year-olds emerging from
They face barriers such as the Jack of savings for a
foster care, many of whom have been a part of state cus-
security deposit, a poor or nonexistent credit history
tody for their entire lives. Young people who rent the
and the lack of a parent or guardian to co-sign a lease
units must meet certain criteria: they must have been in
on an apartment.
state custody previously and be at least 18 years old; their
In addition, many of these youth do not have steady
employment so they can not afford to pay rent. Thus the
chance of former foster youth ending up homeless for
caseworkers must verify that they have basic skills to
live on their own; and they must be in school or working.
The rent will vary based on the individual's income,
some pe1iod of time is high, and the need for permanent,
but on average, monthly rent for each unit will range
affordable housing is critical to help these youth transi-
from $230 to $270, well below the market rent for a
tion into adulthood.
one-bedroom apartment in Nashville. As the youth
increase their income, their rent will also increase.
Tennessee nonprofits address housing needs
Two nonprofits in ashville partnered almost five years
ago to develop a model to address the housing needs of
Supportive services to ensure project's success
Monroe Harding will provide a staff member who over-
foster youth aging out of the system. Woodbine Commu-
sees the homes, checks in with the youth at least once
nity Organization, a nonprofit housing developer, part-
per day, verifies their employment and educational
nered with Monroe Harding, a nonprofit agency that
status on a regular basis and assists them with their
works with foster youth in
independent living needs.
ashvil1e, to develop three
homes with a total of 14 units of affordable rental hous-
"The housing project opens doors for youth who have
ing specifically for this population. Each person will have
been in foster care and allows the teens to gain the tools
a private bedroom and bathroom, and share common
and skills they need to succeed in life," says Patty Harman,
living space in the home. The first units became avail-
President and CEO of Monroe Harding, Inc.
able in spring 2007. Woodbine Comrnwlity Organization
is the developer and owner of the house, and Monroe
Harding is managing and leasing the units.
This venture is an example of the type of public/private partnership needed to develop quality housing that
is also affordable for former foster youths with very
limited income. Woodbine Community Organization, one
of the largest nonprofit multi-family housing developers
in Nashville, provided the development expertise and
overall project management. The project received fimding from the Federal Horne Loan Bank of Cincinnati
through PrimeTrust Bank, a community bank based in
Bellevue, Tenn. Woodbine received the three lots used
for development along with a HOME grant from the
Metropolitan Development Housing Agency (MDHA).
♦
This article was written by Jessica LeVeen Farr, regional
conununity development manager in the Atlanta Fed's
ashville Branch.
Tennessee nonprofits have worked for five years to meet
housing needs for youth leaving foster care.
six
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Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
Louisiana Speaks
IN SPITE OF THE CHAOS AND TRAGEDY PRODUCED BY HURRICANES KATRINA AND
RITA IN THE SUMMER OF 2005 , A FEW BRAVE VISIONARIES HAVE DARED TO LOOK
BEYOND THE DESTRUCTION AND GRASP THE OPPORTUNITY TO BUILD A NEW AND
IMPROVED LOUISIANA.
Bolsterl'd by world-class plannprs Calt horpl' & Associ-
Tlw Regional Plan ww; onicially adopted in 1ay 2007,
ates. 11101irnted by the chiw of local part1wrs like Eliza-
and already the initiatiw has persuadl'd tlw Louisiana
beth "Boo" Thomas, executh·p dirC'ctor of thl' CC'nter for
Ll'gislature to act upon se\·eral ke:v recommendations
Planning ExcC'llence, blessed with the assistancC' of
from the plan.
the Louisiana Recon'ry Aulhority, infusC'd with the
inn'stml'nt of funding and human capital from several
national and loca l foundations and think -ta nks, this
Tlw Regional Plan grew out of the struggll's of many
group C'mbarkecl on a rl'gional planning process that
who, like mysl'lf, had to put gri C'f bC'hind tlwm to pm-
C'ncompassC's southern Louisiana from Lake' Charil's to
sue the promise' of the future. WhC'n the le\·ees broke, I
St. Bernard parish.
watched from my stairs ,LS the water rose in my honw
One oft lw hallmarks of the initialin' has be<'n its
soaking hardwood floors. rugs, furniture , my C'IC'ctrieal
um\·,n-eii ng and uncompromising commitnwn t to secure
system and equipment. The "C ity that Care Forgot" lay
and res1wct the opinions of its most important stake-
undc'r water and burdened \1·ith troubles. That morn-
holclers- the residents of southern Louisim1a. Owr tlw
ing I lay in 90-degree heat in my upstairs bedroom and
last 18 months more th,m 27,000 citizens in :32 different
thought abo ut the city's future- my future.
states p,u1icipatecl in South Louisim1a's Regional \'ision
In spite of tlw initia l shock, it dawned 011 me that
poll. This represents the largPst and most inc lusi\'l'
th is disaster might haV(' c-rPated tlw bold oppor1unit y
regional planning outrPach cmnpaign e\·er concluctPd in
we' nePded. As a community cle\'Plopment professiona l
the l -nited States.
I could see the potential for reim·enting a healthier, safc'r
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seven
city while preserving and promoting our unique culture
\'ation of Louisiai1a's cultures; and the need for greater
and considerable assets. Apparently I wasn't the only
public parti cipation in the planni ng processes."
one who was dreaming big.
Others were thinking broadly abo ut what it would
take to create and encourage healthy conm1Lmities: smart
Anyone working in the public ai·ena knows U1at getting
gravvth; enviro1rn1ental protection; effi cient, high-speed
people from di\'e rse backgro unds and perspectives to
transportation systems; robust economic development
work towai·cls a conrn1on vision can be dau nting a t best.
that capitalizes on "cluster industries"; inelusive zoning
But the LouisianaSpeaks team saw this as a unique and
tha t enco urages safe, affo rdabl e workforce housing;
cri tical opportunity to craft a plan that would serw the
public spaces that promote healt hy living and human
region for the next 50 years. Almost a thousand people
int eraction ; cradle-to-grave educational systems that
fro m all sectors of th e region came toget her at loca-
encourage lifelong learning and meet the demands of a
tions in fiv e major cities to share their creative solu-
variety of employm ent sectors.
tions to th e region 's proble ms and, in man y cases, put
aside the ir personal biases for the bene fit of the plan.
T
priori y or in lu ·ve Ianni~
During the full-clay workshops, citizens crafted a "cohe-
To accomplish their goal o r creating an agenda that
reflected the priorities of Southern Louisiana residents,
regional planners turned to experts s uch as the New
s ive set of s trategies for creating a safe r, smarter, more
prosperous Louisiana. "
For a res ident of New Orleans who is also a commu-
York-based nonprofit AmericaSpeaks. This organization
nity development practitioner, the process, progression
had e>..1)erience in reaching out to fai tlu ng mem bers of
and results of Lou isianaSpeaks were fasc inating both
disaster-affected communiti es: in the wake of 9/11 , it
to observe and paiticipate in. For me this movement
was respons ible for gu iding the com·e rsatio n for the
represented one of the most optimistic and meaningful
recove1y in New York. Am e ricaSpeaks went to extra-
symbols of the recove1y.
0
ordinaiy lengths to get paiticipation from all segments
Could it be that om residents really want high-speed,
of the community, from the high-powered Wall Street
low-em issions public transit that connects Baton Rouge
banker to the hom eless man tempora ril y relocated to
and New Orleans? Would they really be willing to gi\'e
New Jersey.
up their two-acre backyards in favo r of more high-
This nonprofit applied its experti se in outreach to
density, interactive development? Are we really eager
speai·head a similai· effort in Louisiana. The Louisiana-
to walk to our workplaces, grocery stores, schools a nd
Speaks initiative included tlu·ee stages of public paitici-
greet each other on streets built for people instead of
pation: surveys, stakehold e r wo rks hops a nd pub lic
cars? Co uld we agree on or at least s upp ort the kinds
opinion polling. Each of the outreach efforts made use
of industries we want to provide our liveli hood over
of all forms of media and technology t·o reach the public:
th e next ten years? And even m ore daring: based on
Interne t, printed media, e-mail blasts, radio, television
public input, cou ld we actually hold o ur elected repre-
and word-of-mouth were just a fe w of the methods
senta tives accountable for putting o ur scai-ce resources
used to publi cize th e project.
where th ey make the most sense-fo r everyone·7 We
The group's initial goal was to get a sound w1derstai1ding of the wants, concerns and awai·e ness of Louisiai1a's
were ready for one of the most important tests of democracy, the voting poll.
residents ai1d leaders. A rai1dom sai11ple telephone survey in Februaiy 2006 reached 2,500 residents, ai1cl 100 of
those s mveyecl paiticipated in cletailecl interviews over
The planning group managed to accomp li s h th e
U1e next six months. SeYeral key themes emerged accord-
almost-impossible goal of clistilling dow11 the hopes ai1cl
ing to the repmt: "the impo1tai1ce of financial, storm ai1cl
dreams of th ousands of citizens and leaders to fi ve
personal safety; a desire for greater prosperity; preser-
distinct a reas of strategic direction. The s urvey asked
eight
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
respondents fi,·r ba5ic yet ciit icaJ questions (srr sicleb,u-).
kids from sc hool and to shop. FPw of us arr aware
Whik it might spem r,L'i.V on tlw sLU'facr to makP these
that thi s t_vpp of clp,·plopmrnt is an increasingly c'xprn-
choicPs as incli,·iduals. thesP clrcisions. likP human
siw ,,·ay to gro\\'. Our quality of lifP. possibl~· Pwn the
relati onships t hrmsrl\·rs, in nil\·e rr1wrcuss ions that
lrngt h of our lifrspa n, is being comprom ist'd by sprncl-
ext rnd IJC'yond the indi v idual.
ing morr timr in tra ffi c, get tin g lrss exercise and lC'ss
For examplt', traditionally tlw oil and gas sPclor has
frrsh air. In addition wr facr in crC'asPd strPss brcause
chin'n a largr prrcentagP of Louisiana's rc·onomy. But lrt's
of highrr property taxPs and gasoline costs relatc'cl to
say you support your fami ly by working offshore on an
sp rawl. Thr best choi ce for mo,·ing forward mi ght
oil rig, ,uicl yrt you enj oy the beauty and peacP of fishing
SPC' m clPar, but mo,·in g forward might lw Pasirr said
al da,,11 in Uw local marshes. Mrnw belit'VP that tlw oi l and
than cl one.
gas economy cont:Iibutrs to tJw shrinking of our " ·etlands.
ls tlwrP a compromisP solution that can SC'tYP both your
economic and personal interPsts·> Is it possiblr lo attract
Onr oft hp most powerful stat isl ics on the Louisi-
nrw compan irs whi lr simultrn1Pously growing small busi-
anaSpraks ballot wprr srvp ral analyses oft he cost lo
nesst' S locally·> Wouldn't this strategy strain rPsources
If we continur to gro\\' as \\'e mr \\'e
and business incentin•s'? Ho,,· \\'ould \\'P restructure our
• To hm·r mw +1-3,000 nrw people' li,ing in a floodplain
tax code to C'ncouragr small business dr,·elopnwnr>
• To log ,ui ,1\'erage of cm miles of trm·eling per house-
Although Nrw Orlrans alone hosts more th an five
uni,·rrsit i es, wr con tinu e to suffer from "brain clrain"
that draws our best and brightest to grrrner economic
and professional opportunities. In the absence of local
C,Ul
PXpPcl:
hold each clay
• To pay m ·rr 60 prrcrnt morr in fue l costs than if we
li\·ed in clensrr, c-losrr communit ies.
And, as the graph belo\\' sho\\'S, \\'e can P:-.l)ect to
job clewlopmrnt her<', would strengthrning our uniwr-
pay o,·er $:2..\ million more in public funds o,·er t lw
sities only lrad to ha,·ing OLff talPnt ancl Pnergy cheny-
nrxt •15 years t o support infrastructure ancl roads.
picked by out -o f~statr companirs·>
Total Infrastructure Cost (2005-2050)
Billions of 2007 Dollars
What intriguPs me tlw most m·r the choices wr must
makr about how wr want to grow and mm·r fo1ward
$58.2B
$60
,L'i a rrgion. llistoli cally Louisi,uia citizms and clrc-tecl
officials hm·r hrlcl onto n:•1y strong incli,iclual prope1iy
rights. E,·en [)('fore thr storn1s NC'w Orlrm1s was losing
S50
S40
$34B
an m·rragP of four perc-rnt of its population e\Tty decade
to Uw no1ih shorp of'Lakp Ponchmtrain ,mcl ernrrging brd-
S30
room conui1unities in surrounding arras. Baton Rougearra rrsiclrnts were purchasing homrs in thr 1warby
to,,·ns likP Gonzales ancl eYen sleepy l l ammoncl ,,·as
S20
S10
rxprriPncing inc rrasrd growth. Evacurrs from llurri cane Katrina rxacerbatrd the problems associat ed with
S·
housing, lranspo1iation and educational infra.st ru ctmes.
Option A
Few high-clrnsity residential buildings exist in our
Option B
major cit irs. Condos and warrhouse/lo rt rrdevr lopmenls
■ Regional Transit
were sren as appropriatr housing p1imarily for thr pio-
■
Infrastructure
Option C
Regional Highway
(local roads, storm , water. electr1cal)
neering young, urban professionals, artists or rrtirrrs.
Cars arr requirrd to gPt to ,,·ork easi ly, lo pick up thr
FEDERAL RESERVE BANK OF ATLANTA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Source: Louisiana Recovery Authority
nine
But if we agree on the third option, "focusing develop-
Mor{\ to com
ment on existing cities and towns," our housing modes
In the ne>--1, issue of Parinas I'll discuss the resulting
wou ld s hift to more condominiums, apartments and
regional plan and how it fits with other plans a nd the
townhouses, and more public funds would go to build
17 Targe ted Neighborhood Zones adopted by the City of
light rail systems rather than roads.
New Orleans' Office of Recovery Management. I'll also
Even though now only one out of every four famili es
in American can afford to purchase their own home,
provide updates on key legislation that can affect the
implementation of the plan and relay how leaders and
most of our potential first-time homebuyers pursue the
citizens have reacted. And lastly, I'll share stories about
dream of a single-family, detached home with a front
how this has affected the work we do as conununity
yard and porch of th eir own. I'm a professional who
development professionals and rebuilcling residents. To
preaches the message of homeownership as one of the
be sure, I'm looking forward to being a part of the
best asset-builcling strategies for low-wealth fan1 ilies. By
regional vision that will be with me for the rest of my
charn1eling their desire for homeownership into a more
clays here in New Orleans. As a profess ional and
afforda ble living situation s uch as a condo, wo uld I be
resident it's a journey and a dventure that, eagerly and
perpetuating the frustrations of renting?
cautiously, I undertake.
♦
I pondered these issues as I cast my own ballot over
the Inte rnet. In spite of my apprehensions about how
This article was w1itten by Nancy Montoya, regional conrn1w1ity
deve lopme nt manager in the Atlanta Fed's New Orleans Branch.
this movement would trans late into my own work , I
foun d myself infused with a sense of hope and optimism
Photo on page 7 by Marvin Na uman courtesy of FEMA.
for Louisiana's future.
LouisianaSpeaks Poll Questions
Below are the five questions posed to Louisiana residents in the LouisianaSpeaks Regional Vision poll:
1. What are your top priorities for economic development
in Louisiana? (pick three)
3. How important do you think funding and implementation
of the state's proposed plan is to the recovery? (pick one)
• Pursuing new opportunities in traditional sectors
· Very important
• Fostering knowledge-based businesses
• Somewhat important
· Expanding trade and shipping
· Somewhat unimportant
• Attracting and retaining companies
• Not at all important
Nurturing entrepreneurs and small companies
• Not sure/ No opinion
· Expanding job-skills and vocational training
• Strengthening colleges and universities
4. How should we grow? (pick one)
· Keep building and developing as we are
2. Which values in the state's proposed plan are most
important to you? (pick three)
• Modify development patterns
· Focus development on existing cities and towns
· Community preservation
· Commercial fishing
5. What is the right mix of property rights and
· Navigation and ports
community risk? (pick one)
· Recreational hunting and fish ing
· Emphasize property rights (i.e, no increased restrictions on
· Oil and gas infrastructure
• Wildlife habitat and flyWays
tenFRASER
Digitized for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
how or where people build, shared risk increases)
• Balance property rights and community risk
· Emphasize reducing community risk (i.e., development prohibited
in unprotected, flood-prone areas)
VOLUME
17,
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HOW DOES YOUR
PAYMENT WORK?
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Federal Reserve Bank of St. Louis
Don't Bet the House
IT WAS JUST A FEW YEARS AGO THAT WE WARNED FRIENDS AND FAMILIES
MEMBERS: "DON'T BET THE HOUSE" AND "DON'T MORTGAGE YOUR FUTURE."
homebuyers, for all mortgage brokprs and mortgage
bcmkPrs, and especially for gowrnnwntaJ agencies and
elect ed o ffi cials w ho have responsibility for hous in g
America's fami lies.
The .J(' I IS Report confirms that w(' have done thin gs
in n'cent years to undercut the stability of the dream
of safe ,md decent housing for all. The decade oft he DOs
and the first hair o f this decade witnessed tremendous
annual appreciation in home \·alues and simultaneous
record high rates of homemrnership. The housing mrn·ket is now in a "correction'· phase which is painful to
many. I Ialf of the met ropolitrn1 areas in the Cnited States
had a real dollar decline in median home p1ices bet \\·een
the fou11 h qurn1er of :200-5 and the fourth qurn1er of :2006.
In recent years, howe\·er, t lwse risks have become
badges of honor as we 'n, bet the house and mort-
The national homeownership rate dedined in :2006, ,md
mortgage delinquencies rn1d foreclosures rose shaqJly.
gaged the future. And now \\"(' are beginning to see
E\·en more troubling, hO\\·eyer, rn·e tlw shifts which ha\·e
the consequences.
oc-c-u1-recl in the fundamental concept ions of home-
I lome mm1 gage foreclosures are at record levels, and
ownership, putting at C'\'en great er risk the long-term
we 're not yet sure th at we ca n see the bottom o r th e
consequences to the Arne1icrn1 dream. We have unfortu-
market downturn. llomeowners today ,u-e more vu lner-
nately forgotten the ach·ice of om grandp,u-ents rn1d great
able to losing their homes than at any point in the last
grandp,u-ents in five ways.
80 years-when our grandparent s and great grcmdparents
learned not to "bet th e ho use." As a soc iety we have
failed to heed those words of ach·ice.
Uninformed choices putting American dream at risk
First, the terms of residential fimrnce are so complex
and nufab le that homeO\\llers rarely know what they
Housing market undergoing correction in home values
are doing. Precious few really understm1d a graduated
The Joint Center for Housing Stud ies (JCIIS) at 1-1,u·-
paynwnt adjustab le rate mmigage with negative rn11orli -
\'cU-d has recently released ils mrnual su1Yey of housing-
zation. In 2006, almost 12 percent of all lorn1 01iginat ions
77w Sla/e qftlw Sa/ion's Ho11si11g .2007-and the data are
i.J1\·oh·0d mmigages \\ith defened pa_v1n0nts of principal
not encouraging. It paints a powerful pictLu-e not just of
and interest, pushing mrny only for a brief time the
the current excess im·entories of houses but of the rea-
IJC'nding crisis.
sons why homeownership is more precarious today
Second, we\·e gone a\\·ay from th(' dassic fixed-rate
than in decades. This brief :30-page report shou ld be
mortgag0 which fo.:0s the arnmmt or the monthly pa~1nents
required reading for all homeowners and prospecti\·e
for the ent ire life of tlw lorn1, and in which 0ach paym0nt
Digitized twelve
for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
im·oln's a small but d<:'linite builclup of equity, of smings.
ancl by preempting state and local attempts to neate
ln steacl, we rrjo ice in the l owrst possib le m onth ly
substantive protectio ns. If all borrowers had achwic-ed
paym('nls founcl in interest-only loans or teaser rates,
degrees in rra l estat0 finance then disclosures might
bli ndly ignoring tomorrow. Though AHi\1s ha\"C' been a
wor k to sort en the problems. But that's not tlw \my it is.
significant part oft he n'sident ial mortgage market for
:2:)
years, the rC'lia nce on traclitional AHi\ls has clec:li1wcl
in tlw fac-0 of interest-only loans and paymen t option
Low-income families less able to bear risk
Some ca n af fo r cl t o t akr ri sks in ba lancing th eir
loans, which counted for almost one-third of all loan
incomes, tllC'ir e:s,_7)('nci itures and their mortgage debt. It is
originations in :2006.
thosr who h,we less who trncl to get hw-t more. The cost
Third, we sr0k to borrow tlw largest possiblr amount
of housing has continued to rise while incomes hm·e not,
for tlw biggest possible housr, making the lowrst clmrn
at IC'ast not for fami lies in the lo\,·er half of the clistribu-
paynwnt possible. With little or no clown payment and
lion of fami ly incom0 in tlw C.S. lla l f of all low-income
little or no equity builclup. thr only "cushion·· that the
fam i lies are spending more than .)0 pC'l"cc-nt of their
homC'0\\11er has w hrn tough times come lies in the hopr
inco me on housing- th e defin ition of sc-\·C'l"e!y cost-
for constantly increasing home \·alu0s: but that is pre-
burdenecl , and this is at a time when feclc-ral assistance
cisely w hat stops happening in tough times. T he JCII S
fo r affordab le- housi ng is not c-\·c-n keeping up with infla-
Hc-po11 points out that r:3 percent of recent homebuycrs
lion in real clollar terms.
(in 200:3 and 200..t) already hm·c- "negative- equ it y" in thC'ir
As a socie ty we all bear responsib il ity. The lending
homes as the mo1igage debt exceedecl the Yalu(' of the
industry nee-els to regain its sanity in loan underwriting
home. \\'ith dee-lining home ntluc-s, higher interest rates
crit0ria and in designing loan products. Our politic-al
coming into effect and cleferred principal payments. tlw
leaders need to rc-con•r thei r courage in setting lega l
numbC'l"s canying 1wgati\·e equity \1ill likely incTeas0 in
limits designed to protect a futw-e for us all. As bmTm1·ers
the next :2,-! months.
we need to reclaim the knowledge- ,md und0rstancl ing of
Fm11ih , \1·e\·e taken the beauty and simpUcity of ATi\l
the relationship b0l\1·c-en our incom0, tlw pa)1nents w e
cash and applied i t to our homes. Between :2002 ancl
might have to make and tlw reser\'C'S we have fo r th ose
:2006, consunwr debt increase-cl by :21 percent , but O\·c-rall
tough times.
mortgage- debt increasC'cl by 6:2 percent. Whc-ne\'er we'
Fo r curr0nt ancl future homeowners tlwr0 is st ill time
desire or nee-cl cash we quickly and simply refinance (on
to protect thc-rnsc-lws e\·C'n if the lending industry and
terms \1·e don't understand), kming tlw cupbmu·cl b,u-c-
politi cal l0aclers c-lose their eyes ancl point their fingers.
f"or those tough ti m es. O\·er S,'i percent of all m o1igagc-
Consumers can and must take ach'antage of intc-nsi\"C:'
refimuicings in :2006 im·oh·ecl cashing out equity, and thC'
financial literacy and home-buyer education programs.
aggr0gate amou nt of home equity cashed out last year
Ex isting ho m eow ner s now confront i ng imposs i ble
was $:3-):2 billion-mor0 than 10 times the amount caslwd
mo r tgage- obligations can and should sc-rk help imme-
out just six years earli0r in :2000. \\1wn home p1ices stop
diatrly. The recc'nt ly created consumer forec losure-
rising this option quickly cUsappears.
prc-\'ent ion program (l-888-995-1 !OPE) is a powerfu l
Fifth and finally, ,1·0\·e let dmrn our legal and social
first step, but it is only a first step. A second step is for
guards against the cl<rngers of short- t0rm gains wh ich
rvc- ryone to read and th en rea d again 711(' Stale ri( lilr
lead to long-term losses. \\'e\·e completely abandoned
.\"alion'.<i l/011si11_q 2007.
all substan ti ve lega l constraints on residenti al mortgage-
Don't bet th e house. Don't mm1gage your fut ure. ♦
bom)\\i.ng in the name of freedom and instant satisfaction,
leaving the fo reelosecl-upon family wi th Uttle freedom and
no satisfaction. For th e past :30 years pub l ic- policies
hm·0 responded to market failures and market ab us0s
in rrsiclential linai1c0 by incrrasing 1muiclatmy disclosures
FEDERAL
RESERVE BANK OF ATLANTA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Thrsc \ icws are prC'sPntecl by Frank S. AlexallclPr. prof"(' ssor of
law at E1110 1y Llniwrs ity School o f" Law, an Pxpcrt in ( ;porgia
rC'al C'statp l,nancP and forcc-losurc law.
Tlw Stol e r!f /li e' ,Vr,/ irJII \ l/011si11u ,.!007 is m·ailab lP o n line al
,1,n1·.jchs.l1,uYarcl.Pclu/ public-ations/niarkets/s<>n2007/ i11clPx .htm
I hi r I e en
Is Bankruptcy Reform Legislation Working?
Bankruptcy Institut e (ABI), 500,000 consumers raced to
fil e c laims the wee k before the bankruptcy law took
Subtitle A-General
Pro
effect. ' This rush to fil e in 2005 n'ry likely cont1ibutccl to
the subsequent steep drop in 2006 filings.
The question remains whether the new legislation ,,ill
(a)
am
keep bankruptcy filings low. Figur0s for 2007 alrcacly
indicate a significant 1ise in filings. Growth in tlw numbers of bankrupt cy filings can be tracE'CI to an increase in
mmigagc deli nquencies and foreclosu res nationw icl c.
Some anal ys t s p redi ct that bankruptcy filin gs co ulcl
r each pre-reform levels o f on e million by year-encl.
r
it c u s ·
b
et!f
s ·m
o
The effecti,·eness of credit coLmseling, a critical component o r the bankruptcy reform legislation, is unclcr
scrutiny in response to opi ni ons staled in a recent
Govern ment Acco unt abi lity Office (GAO) repo rt. It
IN 2005 WHEN LEGISLATORS LAUNCHED
BANKRUPTCY REFORM MEASURES ,
indicates that th e pre-filing credit coLmscling required by
the law docs not seem to be workin g as int ended. '
Accord ing to the GAO, "Anecdotal e,idcnce suggests
that by the time most cot1SLm1ers recei,·e cow1Seling, tlwir
ANNUAL PERSONAL BANKRUPTCY
financial situations arc dire, lem·ing them with no ,iable
al ternatiYe to bankruptcy." The GAO recommenclecl
FILINGS WERE AVERAGING WELL OVER
that the Justice Department track and analyze the
r esults of' nedil co un seling to gauge its i mpac t on
1 MILLION PER YEAR.
bankrupt cy filings .
Justice Dep,u-tmcnl tracking results show that at le,1St
The nu mber doubled to just over 2 mill ion in 2005 due
10 p0rccnt or I he consLm1ers w ho compktcd counseling
to the sLU'gc of filings in anticipation of' tlw October enact-
decided not to fil0 bankruptcy. Ilowe,·cr, the data cl o not
ment date. (See Pal'/1 w1·s Vol. 15, No. 2.)
rule out th e possibi li ty that filings may ha\·c oeeurrecl at a
No t surprisi ngly, the barrage of filin gs in 2005 was
later date. The .Justi ce Department plans to impro\·e cur-
followed by a dramatic decrease in 2006. Co nsum er
rent tracking procedures with enhanced automation and
bank rupt cies dropped by 71 perce nt , l o a tota l of
tim e series data that will provide more reliab le infor-
598,000 filings for th e year.
mation on th e ou tcome of cr edit counse ling.
Docs thi s mean the legis lation has succ·ccdcd in putting a clamper on bankruptcy filings·? Not necessarily.
l\1ost analysts be lie\'C tha t passage of' I he legislatio n
Georgia lead
nation's " ank u
.y ca · a "
Most states logged a signifi can t decrease in pe rsonal
prompt eel many consumers who were working through
bankruptcy fili ngs in 2006. Georgia saw a drop as well
credit problems to opt instead for filing- before tougher
but con tinuccl to lead the nation with the highest number
measures were pu t in place. According to the Arne1ican
of individual filings. On a per capita basis (basccl on
fourteen
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
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of dosl' lo a yp;u· in slal0s like Flo1ida ,md :\'e,, York
whPrc' forec-losurC' happPns under judicial law. Hat 11C'r
lhwi IOS(' lheir honlC'S, most c·onsumC'l'S opl lo [ilC' for
STATE
2006
2005
79 ,273 (8)*
Cha pt N L:3 p ro t PC' l ion l o slow clow n o r stop fo rP-
GEORGIA
39 ,142
CALIFORNIA
37 ,107
162 ,532 (1)
In addition , ChaptPr J:l rporganization bankrnptcy
TEXAS
34 ,550
117 ,612 (3)
rl'l ic l' fil ings arl' 111orp common in (;po rgia tha n Chap-
OHIO
34,466
133 ,541 (2)
trr 7 liquidation filings. BPcause f Pdl'l'al bankrnptcy
88 ,402 (7)
fffonn tm·gptpd ChaptPr 7 filings, thl' IPgislation·s impact
65 ,360 ( 11)
w,L'i
closun' proc·Pc'dings.
MICHIGAN
32 ,746
TENNESSEE
31 ,406
ILLINOIS
29 ,774
105,964 (6)
Anotlwr c·ont1ibuling f~ll'tor ,,·as (;c'orgia·s high \'Olunw
NEW YORK
29,059
107 ,489 (4)
or nonl racl it ionaJ mid subprinw mo11gagc' loans in rc'CC'n t
FLORIDA
24 ,709
106,250 (5)
years. :\lost of lh<'Sl' lllo11gagrs wrn' PXlPnckd to first -
PENNSYLVANIA
23 ,190
77 ,587 (10)
not as pronounced in Gc'orgia.
ti.Jll(' honH' buyc'1-s ,,·ho qualified basPd on lo,, int roduc-tory rail's sd H'dull'd l o rt'Sl't within <>Ill' to two years.
1\ow that ra t<' adjustnwnts h,ffe lwgun to occu r, lllany
affc,c·tpd bo1To,1·c' 1'S han' not bren ablP to makp tlw highpr
STATE
FILINGS PER 1,000 HOUSEHOLDS
2006
2005
TENNESSEE
13.3
28.0 (3) *
GEORGIA
11.4
23 .6 (11)
ALABAMA
10.8
26 .7 (7 )
INDIANA
9.0
32.5 (1)
MICHIGAN
8.5
23 .0 (13)
ARKANSAS
8.5
27.8 (5)
MISSISSIPPI
8.1
21 .9 (18 )
OHIO
7.7
29.7 (2)
KENTUCKY
7.4
24.3 (9)
LOUISIANA
6.8
21.6 (19)
paymPnl. Ol'tPn tlwy arr not able lo rpfinancP IJpc·ausP
of tlH' 1wgali\·r amo11ization typical!~ associatC'd \\'ith
thC's<' p rod uc ts. Ma ny of thPse consu mPrs now fac·c'
tlw p rosprc t or forC'c losur<' and poss ib ly ba n k ru p tcy.
,\ !so of note. tlw top Hl highest filing statC's on a 1wr
capita basis includc'd fi\·r Sixth Distlic-t state's: Alabama,
Georgia, Louisi,rna, :\l ississippi and Tc'nnPSSl'<'. Florida
nrnkc'd :JS and :J.'j for :ZOO(i ,rnd 200-:i n'SP<'c·lin'ly (Table' 2).
,.
DC'l>at<' continues aboul till' effPc-tin'nPss of tlw bankru p t C'Y rpfo rm IPgis lal ion. Some argul' that I IH' nrw
rPq uirPme nl s and add itiona l costs o n ly impose mo1T
s,,,ir,·,·: / '..'i. Uo11kr1111t,·_1I Court.
l .S. r ·,,11s11s H11r<'<111
burdC'ns on consumC'1'S ,,·ho lrgitimatC'ly nec>d d!'l>I rrlipf'.
Othc'r'S aSSC'ti that tllC' law is necessmy to c-tu'h ahusr mid
filings pPr 1,000 l1<1usl'holcls) . lw,n'\'l'r. GC'orgia C'IHkd
rnsurP that those c·onsumC'l'S ,,·ho c-,m afford to repay at
thl' yPar Sl'(·ond IH'h incl TennC'SSC'('.
k'ast a portion or tlw ir dPbts do
so. ♦
Part or tlH' rpason for Georgia's dubious distinct ion
111ay lH' tlw statp's nl'ditor-fril'ndly la,,·s, \\'hich han'
This ar1 idl' 11·as 1\l'illC'n h.' Lisa EasH' n1 ood. finan('ial analysl
in tlH• Supc>1Yision and RC'gulaIion cli\ision at till' AIlanta Ft'<'-
oftpn lef't borrowNs with k\\' options ot hN lhan
bankruptcy to protect lhem in tlH' e\·ent of financial
difficult il's, Psp0(·ia lly when a 111ortgagP is i1n-oln'cl.
(il'orgia is a non-judicial state that permits IPnders to
forc•close on a home \\'ilhoul going lo court. From
initiating foreclosure' proceedings to selling a honH' on
t hl' court house slc'ps, l 11C' procC'ss c·,rn be c·omplekd in
as fp,,· as :l'i clays in (ieorgia, co111parC'CI with a l i1110lhune
F E DERAL
RES E R V E BAN K O F A TL ANTA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Endnotes
1
Erika Lo,·pi.'·, "BankrupJc·y Filings Rist' l p1n1rd TrPnd is
Expt' <'lt•cl to ConIinuP Through :200,." llri 11s/ ()11 ('/i m 11ic/1.
Apri l !I, :200,.
~(;n•gory Stanford, ··Bankrupt cy: Repairs lo l."'111 \!'P<IPd ."
Tit<' .\l i/11 ·<111k,·1• ./() 111'11<1/ Se11ti11Pi. ~la.' I , :!00,.
fifteen
Predatory Lending and the Military
PREDATORY LENDING IS ALWAYS PROBLEMATIC, BUT IT'S A SPECIAL CONCERN WHEN
MILITARY PERSONNEL ARE PREYED UPON DURING ACTIVE DUTY. A NEW LAW WILL
HELP CURB ABUSES , AND THE FEDERAL RESERVE IS PLAYING A REGULATORY ROLE
ALONGSIDE THE DEPARTMENT OF DEFENSE {DOD}.
Protective provisions within The Jo hn Warner National
A 2005 s urvey of serviceme mbers rated pe rso na l
Defense Autho rization Act for Fiscal Year 2007 (Warner
finances lllo re stress ful than deploylllents , health con-
Act) were s igned int o law in Octo be r 2006 and wi ll
cerns, life e\·enls a nd personal relations hips. The most
become effecti\·e October 1, 2007. Also known as the
common traps ha\'e been payday loans, \'ehicle title loans,
Talent Amendment, the new legislation vvill protect ser-
nlilit3ly instal lment loans, tax ref1-md an ticipatio n loans
\'ice men and wolllen and their fam ilies frolll some of the
and rent-to-mvn purchases.
worst practices of loan sharks.
Early in 2005, legis lation was proposed to limit preda-
Financial stress not only affects the well-being of individual se1v ice melllbers but also the operation of the arllled
tory lending practices targeting mil it3ly personnel. The
forces as a whole. Financial strain is so system ic Lhat
Servicelllembers Anti-Predato1y Lending Protection Act
many members have become unqualified for s l rategic
sought to limit the an nual percen tage rate (APR) to
secLUity clearances, thereby comp romising the ability of
36 percent, enhance disclosme of loan terms and rest1ict
the amwd forces to conduct their missions. As a result of
auto matic loan roll-overs. (See Par/11C'l's Vo l.1 5, No.2.)
these concerns, the DOD developed a strategic plan to
Although this bill didn't become law, it paved th e way
reduce the stress related to financial prob lems, increase
for the new legis la tion.
the personal savi ngs of its members, decrease its mem-
Effects of predatory lending
prevalence or predatory lending practices.
bers' dependence on unsecured debt, a nd decrease the
Over the last several years, DOD has been increas-
Even though the DOD has been paitnering with a nw11-
ing finan cial education for membe rs of the lll il itary.
ber of organizations li ke the FDIC to prmide financial
O\'er 40 percent of military se1Y ice personnel a re
education, these efforts have not been sufficient to stem
under Ihe age of 25, and ma ny are no t experie nced
the tide of predatory lending. DOD therefore pressed Con-
in financial matters. Thus th ey are easy targets for
gress to prO\ide greater legal protections from predatory
predatory len ders.
lending practices.
sixtee
n
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Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
New rules to curb abuses
SC'ction 670 of the W,:m1er Act , ·'Limit ations on Terms
of Consumer Credit Extended to Scnic·p :\!embers and
:2. Any clisclosmes requircd by llw Truth in LC'ncling Act:
;J. A clear d0sc1ipt ion of tlw payrncnt obligation; a11d
-l. A "co\·crcd borrower idt>ntification stat0ment."
DC'prnd0 nt s," is designed to curtail abusive pract ices
assoeiat cd with payday lending an d other prcclat ory
l0nding praclic-cs largt>ted al military pt>rso nnl'l .
Tlw law applies to both sr1...-ic-P members and their
dcp enc!C' nt s. It st ipul at cs th at the APR of a c-overe cl
Framing the regulations
Thc new legislation assigns DOD lhC' responsibilit y of
issuing regulations and in1pl0menting them. l low0H'r, it
also stipulalcs that DOD must consu lt with t]l(' FcclPral
extension of ncdit cannot excrcd :36 pere0 nt. and it
R0s01Ye and other primary banking regulato1y agencies
manclatcs disclosures and terms mirroring thc Truth in
as wcll as th0 FTC <U1d NC'l .A. This l\-ill be tlw first time
Lcnding Ac t. It also in (' luclcs a pro\·ision against any
DOD has bPPn im·ol\·pcl in drafting r0gu lati ons thal will
stal e or fC'Cleral preemption , unlcss th ose law s prmi clc
affpc-t th e banking industry. Proposrd regulations \l'C're
C'\·en grcater protections.
published in the FeclC'ral R0gister on Ap1il 11 , :2007, ,me!
Othcr pro\'isions inC'ludc thc follow ing proh ibitions:
tlw c-onmH'nt period ended in Jww :2007.
• Lcndc'rs may not roll o\·C'r. n' new. rrfinance or
( 'onmw nt s acknowlC'dge that signi fi cant protect ions
consolidatP c-reclit unless th<' nC'w tnmsac-tion
ar<' added into law by the stat ed pro\·isions, but I lwy
rcsults in more fa\'Cnable tcrms to thC' borrowC'r.
also cite c-ha.ll0ngcs, including crafting language' that does
• Borrowers nmnot bc requircd or allowed to w ai\'C'
thC' right to IC'gal r('COLU-SC'.
• In t lw case o f di spute, lcndcrs cannot rc' quirr the
not presrnt contradic-tions or cr0ate confusion with
regard to Pxisting la\1·s and regulations. For example,
som<' beliP\'<' that disc-losing ,rn APH and a i\lAPR might
borrower to submit to arbitration or impose onerous
bc confusing to consumers, or that t lw dcfinit ion of "c-on-
lc>gal nolieP prmisions.
sumPr crc>dit" might be too rnuTowly statrcl.
The \\'arner Act prm·idcs speci fi c c!C'finilions of the
Others ai·guc that installnient lmms should b0 inc-lucled.
terms "interrst," "APR" and "c-onsunwr cr Pclit. " For
St ill otlwrs note that open-Pnded neclit such as c-r0dit
pxamplP. its dPf'inilion of APR incl udes all fpes and
ca rd s, bank o\·ercl raft l oans and payday loans O\'C'r 91
cha.rgc>s eo1mccted to the loan, inc-luding singlc-prcmiwn
clays 11·en' not addr cssecl. Furtlwrmorc, somc a.re' c-on-
credit insuranc0 and other products sole! in connection
ccrn0d that prcdatory lcnc!C'rs will r0struc-lun' loan terms
1\·ith the> transaction. Sonw of thes0 fprs and chargPs
to g0t around the rc'g ulation ·s d0f'inilion of "consumer
are c>xempt from standard APR calculat ions so thr Iww
crt> dit " in o rd er to co ntinue their p rcdat ory pract ic0s.
method of calcu lation is being called tlw "M ilitaiy AP ff' or ·':\lAPR."
Prior to becoming ohligatccl through th0 transaction,
An important debate
Enhancing consumer protrctions for s0nicen1('111bers
each app li cant must be provided w ith a clear and con-
is c-lpar[y lwnclicia.l. But som0 have' argued th at in tt>rms
spicuous "con' red borrowC'r identification statement"
of p0rsonal finance our senicenl('mb01-s ,u·0 no different
that must be signed by th0 borrower.
than the rpst of us, ,u1d that consumers as a wholc cou ld
It shou ld lw noted that the law docs not apply to resi-
b01wlit from strong0 r prot 0c-t ion against prcdatmy prac-
dential mortgag0 loans and loans to purchasP \ 'C'hic l0s.
tice's. At llw sa.nw lime. r0gu latory bocli0s must walk a
Residc>ntial mortgag0 loans ar0 defined not only as
finc line to m·oicl undue rest ri ction against acc0ss lo
purchasc monc'y but also relinancing, home cquity loans
crcd it. Whilc thc debate continues, all parties agr0P upon
and home equity lines of credit.
the rnlue of hming fin ancial education in making \1·ise
For cm·ercd loans, s0nicemembers should <'xpect to
recci\·p th e following at the loan closing:
I. A disclosurP cont aining the l\-lAPR and tlw total
fina ncial choic0s.
♦
This ,utic l<' \\'as 11-ritlPn by ~li c-hael ~lilnPr, rPgional c-omn111nit y
dp1·plopnwn1 director in thP A1lm1ta FPcl's Birmingham 13r,rnc-h.
dollar amount of all charg0s;
FEDERAL
RESERVE BANK OF ATLANTA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
seventeen
Free Tax Sites Generate
Refunds for Nashville Families
THANKS TO FREE TAX PREPARATION
AND THE EARNED INCOME TAX
~ 1040
CREDIT, MORE THAN 6,000 LOW-
Label
's llrsl name and uutllll
L
~
II a ,oint r9turn. sl)OUSO
E
L
LwJt f\NT'l8
haVe
HonMt~l~
a po b01t, see page \6.
and sttael): rl yau
- --;:;:-
-
~ - - - . ; atorfl9" ~
AND MODERATE-INCOME FAMILIES
"l t ~
THROUGHOUT NASHVILLE RECEIVED
A TOTAL OF MORE THAN $9 MILLION
IN FEDERAL TAX REFUNDS THIS
PAST TAX SEASON.
The Kasl1\ille \\'ealth Building Alliance (1 \VBA) spon-
to call :2-1-1 to get a free, one-hour financial consulta-
sored 13 tax preparation assistance sit es, plus a mobile
ti on whic h in c ludes a custo mized budget and goa l
w1it that traveled to se,·eral nonprofit organizations w1d
assessment as we ll as information about resources
local employers to provide help for households earning
for further help .
$-!0,000 or less.
Thanks to th e work of the Volun tec•r 1.ncome Tax
Assistance (\1TA) sites:
• 6,2 13 returns were filed through al l VITA sit es,
a 6 percent in crease o,·er 2006;
• $8,946,529 in Federal refw1ds were due to VITA site
clients, a 4 percent increase m ·er 2006;
• $;3, 009,:283 in Earned I ncome Tax Cred it (E l TC)
refW1ds \\·ere tallied, a 7 percent increase o,·er :2006.
Eac h VITA client also received a fre e "Fi nancial Sta-
NWBA extends its reach through new partners
The Kash,ille Wealth Building Alliance \\·orks ,,·ith
nu merous compan ies and organizations to broaden its
outreach and educational efforts. This year, thei r coUaborations produced:
• Four new \'!TA sites, including an employersponsored VITA site at Tyson Foods that offe red
sel"\ices in 9 different languages.
• A new partnership with Tennessee's Depai1rnent of
bility Resource Guide," w hi c-h provides a cornpreh C'n-
Human Se1Yices, which sponsored the NWBA's lai--
si, ·C' listing of the free or affordab le asset-b uilding
gest VITA site and implemented EITC outreach to
se1vices in NashYill e. \'ITA clients were encouraged
Fami lies First and food stan1p clients.
eighteen
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
• A ne\\' partnership \\'ilh a local compmw, Ble\il1s
Inc. , to prmidC' a fn'C'-standing VlTA sitP in a lowincome' arC'a.
fami ly claiming the crC'dit, but also a boost for thC'
Nas ll\'ille eco nomy.
"ThC' 'ripple' C'ffect' from EITC refunds spent in .\ash-
• A new partnership with \ 'anderb ilt l ' ni\'C'rsit y to
establish a \'lTA silC' m1el sill' coordinator to targC't
\ 'm1dC'rbilt stuclC'nts and employees.
dllC' producC's millions of dollars each yC'ar in pc·onomic
stimu lus, crPat es hunclrC'cls ofjohs cluP to innPased
demand for products and sPnices purchased \\ith EJT('
• A 76 pc•rcpnt incrpa-;0 in calls to UnitPcl Way's 2- 1-1
rC'funds, m1d r('clu c·C's pm·C'rty w ithin our local c·omrnu-
call CC'nlC'r in i\'asl1\ille/Da\idson County about thC'
nity." said Congressman Jim Cooper C'ith Dist1ict , Ten-
hours and local ion of \'lTA sit C'S.
nC'SSC'C' ). CongrC'ssmm1 CoopC'r is 01w o f th e found ing
members of tlw '.'JWBA.
Economic ripple extends to Nashville economy
The EJT(' is m·guably the most C'ffccli\'C' m1ti-powrty
N \\ 'BA is a broad-basPd coalition of go\·ernmPnt, nonpro fit s, churclws and businrssrs working togpt lwr to
program in America and lifts more chilclrC'n out of
help low- and modrratr-inconw incli\·iduals m1cl families
po\·erty than any singlP fC'cleral program or combinat ion
tlu·oughout Nash\·illc/Dmiclson Count y to build mid main-
of fpderal progrm11s. It prmides one of tlw bC'st oppor-
tain financial stability. Sponsors incluclr: BIC'\ins Inc.;
tunitirs for working f'amiliC'S to put monC'y int o sa\ings,
Ba nk of AmC'rica; Regions Bank; TC'nnC'SSC'P l)ppart -
1\·hich is mi irnpo1im1t step towards helping thC'm achiC'\'C'
ment of lluman SenicC's (DIIS); Tyson Foods Inc. ; thC'
grpater financial stability.
Bank of
An economic impact study sponsored by tlw :'\\\'BA
found that EITC is not only a bC'nC'fit for tlw working
1aslwillC';
CS Commun it y CrC'clit t ·nion, and
Da\i cl & Ad riC'nn C' Piston. l 'nited \\'ay of !\let ropolitm1
.\asl1\ille is a IC'acling part nC'r of tl1C' :-,;\\'BA.
♦
Th is article \\'as \\'ritten by Rachel FrPPZP. Nash,·illP \\'palth
Bui ld ing Allianc·p managp;· at t ·ni tPd \\'a,v \'asl11ill<'.
2007 Season Results
PERFORMANCE INDICATORS
ALL CLIENTS
6,243
# filing returns
Total federal refunds claimed
$8,946,529
Total Earned Income Tax Credit
$3,009,283
29.12 %
1,678
# claiming Earned Income Tax Credit
$117 ,568
Total child & dependent care credit
257
# claiming child & dependent care credit
4.46%
$1 ,925,230
Total child tax credit
$1,483
# claiming child tax credit
25.74%
$283,747
Total education credit
6.56%
378
# claiming education credit
270
4.69 %
# with positive tax amounts
3,498
60.71 %
# with positive federal refund amounts
5,133
89.08%
# using direct deposit (federal tax)
3,075
59.91 %
5,154
89.45%
# claiming unemp loyment compensation
# federal returns filed (electronic)
Median Adjusted Gross Income
# with AGI > $37,263
S"111rr•: Nashl'i/1,• Wn1//h U11ildi11,11 Alli11111·,•
-
FEDERAL RESERVE BANK OF ATLANTA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$20,078
Ir
717
II
I
12.44%
nineteen
ALABAMA
HOUSING PLAN HOLDS PROMISE FOR FUTURE
The l lillsDale communit_v of :\lobile. Ala .. has
assw11rcl the motto "forging a
futurr " to dPsc-ribe its neighborhood rr\·italizat ion efforts. Located
curren tl y choose from se\·en different floor plans,
but DASH " ·ill r\·entually make up to 1:2 plans arnilable. DASH hopes to attract familirs clisplaced by
llurric-ane Katrina as 11·ell as any buyC'rs interrsted in
a re\ita li zecl I lillsDalP.
along one of the arC'a·s main transportation arteries and
acljac-ent to Cn ivrrs it y of South A labama, this onc-e\ibrant nrighbor hood is embarking on a plan to rrc-laim
its srnse of community and attrac-t 1w11· rPsiclents.
Unique aspects of plan
in aclcl ition to incorporating modul,u· housing, an othrr
uniqur feature' of thr reYita li zation plan i s thr sca le
and targeted nature oft he !'uncling pro\·idecl by local
DASH partners in HillsDale revitalization
Spearheaded by the residents ancl supported by DASII
gO\·ernment.
Rather than parce ling out smaller pots of money to
(Jkpenclable. Affordable, Sustainable Housing) for the
\·arious community cle\·elopment projects, the threr-
Gulf Coast, a Ne ighbor\\lorks® affili ate\ thr re\·itali-
member CDBG (Community De\·elopmrnt Block Grant )
zal ion plan wi ll build :2:20 new homes and renO\·ate
Entitleme nt Com mitt ee maclr th e bol d decision to
:2..J t'x isting homes in the 1wighborhoocl. Tlw total in\'est-
dedicat e over $750,000 of tlw city's $:3 mill ion annual
n1<'nt is Pslimated at almost $:27 mi lli on.
C'DBG fun d to projects in thr I lillsDa le neighborh ood.
Threr nrw modC'i homes were showcasPd recently lo
The money will be usrcl to build sidrwal ks, impron'
resick'nts, local banks ancl other stakeholcit'rs. They ,u-e
drainage, refurbish a nearby park and help residents
modu lar c-onstruct ion with upscale amenitic's such as
with clown payment assistance.
oak cabinrts and garclen tubs making tlwm appear far
pricier than comparable site-built affordable homes.
Tlw units range from a two-bedroom. nll:2-square-fool
Construction of the ne\1· homes 11·ill begin in midNowmber, ancl DASII anticipatrs that they 11·ill br ready
for occupancy by January :2008. Homebuyer training
homr pricrcl at $DG ,OOO, to a l ,..JGO-sq uare-foot. four-
classes wi ll begin in
brclroo m , two-bath honlC' for $1..JD.000. Buyers c-an
ownPrsh i p Crn I Pr.
ove mlwr at lhr DASH llom e-
For more in formati on about t hr clrvelopm ent or DASI I
for the Gui£ Coast call (:251) ..J:38-7800 or \·isit thC' website
at wvvw.dashgulfc-oast. org. ♦
This anic-le 1u1s \ITittc-n by :\" ancy :\lontoya, regional
c·ommun it y dc-n'lopment managc' r in tlH' A tl anta Fed's
'.\e\\" OrlPans Bran ch.
twenty
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VOLUME
17,
NUMBER
2
GEORGIA
FORECLOSURE SOLUTIONS: HELP FOR GEORGIA HOMEOWNERS
T he rece nt rise in forec losure ac ti vi ty is a national
cular emphasis on the
trend affecting thousands of LS. households. According
foreclosure process in
to RealtyTrac® , more than 1.2 million foreelosu res were
Georgia. lnte1Y iews wit h
fi lccl nationwide in 200G. Th is issue is of pmticular con-
nat iona l an d st ate leaders
cern in the Southeast, where Georgia ranked sixLh in the
prov id e info rlll ation al.J ouL rPsou1-c-es availab le t o
nation in forec losures last yem·.
no nprofit agencies that work w i th co nsumers to
T he Fc-dc-ral Reserve Bank of At lanta's Co mm unity
prc-ser\'c- the ir hollles. I n addi ti on, Emrny L1w School
Affai rs o ffi ce recog ni zes that foreclosures can have- a
pro rc-ssor Fra nk Akxan der explains the (')..l)C-dic-ncy of
de\·astati ng ripple effect on consumers, finan cial insti-
the foreelosure process in Georgia compared to ot her
tutions m,cl the overall commu nity. Combining research,
sta tc-s.
communicati on m,d active- involvernc-nt, the Community
Perh aps th e- most importm,t aspect of th e \icleo is a
Affai rs sta ff has w ork ed w it h com muni ty part ners to
seg ment tha t highli ght s sevC'ral consum ers w ho have
pro,·icle i nformati on that w ill help those affected by
face d forec los ure. T hey describe thei r p reclica nwnts
forec-losures lllake more informed decisions.
and offc-r acl\·ice fo r oth C'rs facing simi lar probl ems.
Atlanta Fed partners in
foreclosure prevention campaign
Th C' Atlm,ta Resc-1Ye Bank is an ac-ti\·e partner i n the
NeighborWorks Arnc-1i ca/National Ad Council Foreclosure
So l uti ons Ca mpaign, w hi ch promotes th P Homeownership Preserrn tion Foun dation's (IIPF) nationa l HOPE
hotl ine in Georgia. 1-888-005-1!OPE (.JG7:3). QppratPd by
I-IPF' and sta!T(•cl in par t by CC'CS of Greater Atl anta
co unselors, t hP hot lin P connpcts honwow,wrs facing
\
fo reclosure \\'ith free counseli ng 2-t hou rs a day, 7 days a
WC'l' k.
The HOPE hotl ine was launched in G(•o rgia in
ea rl y 2007. Bet ween Jan uary and Apri l 2007, over (i,:300
The At lanta Feel has responded w ith two i«'Y ini tiati,·es: (1) production of a \i cl eo that presents sollle of the
iss ues Gc-orgians ar c- facing as a res ult or forC'c losures,
homeowners called the hotline, m,d approximately 1,:500
caJ IPrs recein'ci cou nseling.
Both of these initiatives m·e pmi of the- Atlanta Fed's
m, d (2) part icipation in a national fo rC'closu re prevention
ongoing effort to promote a bett er unclerstm,cli ng of' l'ore-
cmnpa.ign in partnership w ith SC'\·eral national, state and
closure issuPs in the r egion and to support programs
local orgm, izat ions.
tha t seek to help affect eel consumers.
Video focuses on Georgia foreclosures
Th is aitici(' " ·as \\TiltC'n by Sibyl Slade, rpgio nal co mmunit,\·
dcvC' lop mc•nl 111a11agC' r at tilP Atlant a rC'cl.
♦
The Bank's fo rec losure- p r e\·en t ion \'icieo p ro\·i d cs
a nationa l perspecti ,·e on forC'closm e issues w it h parti -
FEDERAL
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FE D E RA L RESE RV E BA NK O F ATL ANT A
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COMMUNITY AFFAIRS OFFICER
Juan C. Sanchez
COMMUNITY AFFAIRS DIRECTOR
Wayne Sm ith
EDITOR
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PRODUCTION MANAGER
l la rri ette Grisso m
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Mike Milner
Nancy Montoya
Sibyl Slade
CONTRIBUTING WRITERS
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Lisa Easterwood
Rac hel Freeze
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Odi e Swa negan
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