The impact of downturn housing market on Minnesota #6
Millions of homeoners across the United States are in deep worries. Adding to these worries, New Century Financial Corporation filed for Chapter 11 bankruptcy protection in the biggest collapse of a mortgage lender in the U.S. housing downturn. The company also fired 3,200 employees.
USA Today said the growing trouble in the subprime mortgage industry poses many uncertainties nationwide, especially for the financial industry. For example, shares of many subprime lenders have plummeted including NovaStar Financial, a leading subprime lender. Its shares have plummeted more than 42% to $10.10 after it announced a fourth-quarter loss of $14.4 million, USA Today has reported.
This news feature will look at the negative impact the housing downturn is likely to have on Minnesota's economy and housing market. The story will look especially at the impact on low income families and what could be done to prevent foreclosures. How is the impact in Minnesota compare with other states?
Dexter Sidney, Field Officer (Minnesota)
U S Department of Housing and Urban Development
Tel: (612) 370-3000
Professor Ed Goetz, Director of the Urban and Regional Planning Program, and Housing Research Fellow at CURA Humphrey Institute of Public Affairs.
Jacqueline King - Assistant Vice President and Community Affairs Officer
Federal Reserve Bank of Minneapolis
Tel: 612 204 5470