Nonprofits Now Bailing Out Mortgage Lenders
May 5, 2009 1:08 PM
The Ford Foundation and the MacArthur Foundation are going to invest $50 million in a new nonprofit effort to help municipalities buy foreclosed homes from financial institutions. The foundations hope that the National Community Stabilization Trust will stop or reduce declines in home values. They are optimistic that their investment will attract additional private capital because it will be securitized by the investments, and will also encourage similar efforts by others.
The Ford and MacArthur Foundations deserve the thanks of American homeowners for the creation of the Trust. Despite the substantial amounts of taxpayer money invested by the government to help mitigate the housing crisis, more is needed. These two foundation's worthy effort stands in marked contrast to the paltry or nonexistent efforts of most mortgage lenders who have failed to use the taxpayer money they have received to address the crisis that they created.
The Ford and MacArthur Foundations deserve the thanks of American homeowners for the creation of the Trust. Despite the substantial amounts of taxpayer money invested by the government to help mitigate the housing crisis, more is needed. These two foundation's worthy effort stands in marked contrast to the paltry or nonexistent efforts of most mortgage lenders who have failed to use the taxpayer money they have received to address the crisis that they created.
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