Several reports have been released in the past few weeks detailing pieces of the continuing foreclosure crisis hitting the nation. For instance, reports released by the General Accounting Office (GAO) earlier this month note that the number of Federal Housing Administration loans have declined as the subprime mortgage market has grown. According to one report, the FHA's share of the market dropped from 19% in 1996 to 6% in 2005. FHA loans decreased among populations where it traditionally has had a strong presence, including minority borrowers and low- and moderate-income borrowers, the GAO said.

Another study, Income is No Shield against Racial Differences in Lending: A Comparison of High-Cost Lending in America's Metropolitan Areas (recently released by the National Community Reinvestment Coalition), finds that minorities are at the greatest risk of receiving poorly underwritten, high-cost loans, regardless of income levels. On a related note, HUD has announced the creation of a new lending division, which will be tasked with scrutinizing lending practices which may be discriminatory. This new division will enhance the quality and speed at which HUD conducts lending investigations.

Also this week, NCRC raised concerns that the new Fair Mortgage Practice Act, introduced by Representative Spencer Bachus to curb predatory lending practices across the nation, does not go far enough in protecting consumers. While the Bachus Bill creates an originator registry, establishes limited counseling, identifies appraisal pressure, and calls upon regulators to establish standards, it fails to address many issues, including assignee liability, responsible mortgage servicing, good faith and fair dealing in lending, fiduciary duties for mortgage brokers and appraisers, or anti-steering concerns, to mention but a few.