Do Borrower Rights Improve Borrower Outcomes? Evidence from the Foreclosure Process

February 28, 2012

Tuesday, February 28 at 5:30 p.m.
Allison Dining Room, 5th floor, Taubman Building, 15 Eliot Street

Presentation by Paul Willen, Senior Economist and Policy Advisor, Research Department, Federal Reserve Bank of Boston
Commentary by
Sheila Dillon, Housing Advisor to Boston Mayor Thomas M. Menino
What is the effect of laws designed to protect borrowers from foreclosure, such as requiring lenders to seek judicial permission to foreclose or blocking lenders from starting foreclosure proceedings for a set period of time after a borrower defaults on his or her loan? In a new paper, co-authored with Lauren Lambie-Hanson and Kristopher Gerardi, Willen found that neither approach seems to have a significant impact on foreclosures and that, at least in policy terms, both approaches are "policy failures."
Cosponsored by the Taubman Center for State and Local Government and the Joint Center for Housing Studies.