High Risk Foreclosures

The Acting Comptroller, Julie Williams, warns lenders that the biggest challenge facing community development today is the problem of foreclosures. The marginal and high risk loans that lenders are encouraged to make, particularly in the context of CRA, may also have a high risk of foreclosure because the borrowers' capacity to repay is "fragile." These loans may need special attention. Programs that involve financial and home buyer education and counseling are important elements for success in these markets.

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 7, 6/05