An Informed Discussion of Nontraditional Mortgage Products & Escalating Foreclosures
On December 11 & 12, 2007, the Federal Reserve Bank of Chicago, Consumer and Community Affairs Division, in co-sponsorship with the University of Wisconsin Extension, and the Wisconsin Housing and Economic Development Authority (WHEDA), hosted a conference titled, An Informed Discussion of Nontraditional Mortgage Products & Escalating Foreclosures. The conference will be held at the Country Springs Hotel in Waukesha, Wisconsin.
Participants gained valuable insights from experts who will explore the risks posed by nontraditional mortgage products as well as the problems created by Wisconsin's rising number of foreclosures. "Nontraditional," "alternative" or "exotic" mortgage products are residential loans that include "interest-only" and "payment option" adjustable-rate mortgages that allow borrowers to defer repayment of principal and sometimes interest. These products allow borrowers to exchange lower payments during an initial period for higher payments later. The conference also seeks to build a grassroots coalition to build an effective community response to address the rising tide of Wisconsin foreclosures, which rocketed 34% in the state last year and have jumped another 21% thus far in 2007.
Possible Tools to Communicate the Availability of Information about Foreclosures