There have been widespread and serious problems in the subprime mortgage market over the past several months, but little attention has been paid to the economic impact of foreclosures caused by subprime loan defaults on local communities across the nation.
Over the last year, Ohio has consistently ranked in the top 10 of states with the highest rate of foreclosures in the country. Cities such as Dayton, Akron and Cleveland are ranked in the top 20 metropolitan cities nationally with the highest number of foreclosures in 2006. According to June 2007 data, Cleveland has been hit particularly hard by the increase in foreclosures. In particular, Cuyahoga County has the largest number of new foreclosure filings in the country. With 3,261 new unique address foreclosure filings in June, the county has one new foreclosure filing for every 169 households. Last year alone, Cuyahoga County had 13,000 foreclosures.
The JEC will examine the destructive impact of the foreclosure boom on Cleveland, Ohio, which is currently among the cities with the highest rates of subprime foreclosures in the country. The hearing will investigate the impacts of foreclosures on homeowners, neighborhoods, and cities, and explore federal policy responses.