Congress to Hold Financial Services Hearing in Twin Cities Minneapolis --
Congressman Keith Ellison (D-Minneapolis) announced today that the U.S. House of Representatives Committee on Financial Services will hold an official hearing entitled "The Effect of Predatory Lending and the Foreclosure Crisis on Twin Cities Communities and Neighborhoods" on Thursday, August 9th from 6:00 - 8:00 p.m., at the Minneapolis Central Library (300 Nicollet Mall).
The hearing is open to the public. The goal of the hearing is for the committee to hear from advocates, community associations, industry and local representatives with unique perspectives of the foreclosure and housing situation in the Twin Cities. While communities all over the country are struggling with foreclosures, predatory lending, and issues associated with the sub-prime lending crisis, Minneapolis and St. Paul are emblematic of a larger, nationwide problem.
In fact, in the first three months of this year, there were 678 foreclosure sales in the city of Minneapolis, an increase of more than 100% in just one year. Furthermore, more than half of these foreclosures were located in North Minneapolis, an area particularly hit hard by predatory lending and foreclosure policies.
"I am proud to have the Chairman of the Financial Services Committee, on which I serve, here in the Twin Cities to see first-hand the impact these practices have had on our neighborhoods.” Congressman Ellison stated. The hearing's testimony and transcript will be a part of the official record, which members may use as they develop, discuss and debate predatory lending legislation in the coming months.
WHAT: House Financial Services Committee Official Hearing "The Effect of Predatory Lending and the Foreclosure Crisis on Twin Cities Communities and Neighborhoods"
WHEN: Thursday, August 9th, 2007 - 6:00 - 8:00 P.M.
WHERE: Minneapolis Central Library (300 Nicollet Mall)
WHO: Chairman Barney Frank Congressman Keith Ellison
Lori Swanson, Minnesota Attorney General
R.T. Rybak, Minneapolis Mayor
Chris Coleman, St. Paul Mayor,
A Minneapolis Star Tribune April 24, 2007 article called the Minneapolis foreclosure rate an "epidemic."
This problem is not limited to one city or neighborhood, a 2006 study by the city of St. Paul found that there are more than 800 abandoned buildings in the city, the highest number since the city began keeping such records in the 1980s.
Foreclosure rates are not unique to the Twin Cities. The nation-wide default rate among borrowers holding sub-prime mortgages has risen to 12.6%.
In the interest of fair disclosure, that site has a badge showing its political alignment:
With that said, I believe my concern about housing and Ramsey Town Center is a universal concern regardless of where on the spectrum one is - myself close to these people keeping the Wellstone memory alive; and Matt Look, Ramsey Councilmember who is a supporter of GOP State Senator Mike Jungbauer. Each of us wants to see the Town Center survive the present housing slump, and each of us wants to see it done without overburdening present Ramsey resident-taxpayers. Without subsidy, a success within the market, measured by the market.
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That will take time.
In the interim, the hearing might be a start toward some federal effort at reducing the stress on individuals facing home foreclosures - or townhome purchasers facing selling with negative equity because builders are still selling off inventory at a discount.
The excerpted site suggests our Sixth District Rep. Michele Bachmann will be a nonparticipant in this hearing. I hope not. She sought and obtained the committee assignment and this would be an opportunity for her to give the hearings a suburban perspective - with our Planning Director, our mayor, or Bob Close as a hearing witness.
My vote for a hearings witness - Bob Close could discuss how the situation looked to him two-three years ago, and how it looks to him now. He could dissect the changes perhaps better than anyone else - he was NOT a Nedegaard insider, he got the award, he can opine about how times can change.
AND - he is one person I would like to hear from, now, publicly, about his perspective on events, chance and planning. Wouldn't you?