Former HUD Secretary: Foreclosure crisis underestimated
Henry Cisneros, former HUD Secretary (during the Clinton administration), believes the entire nation underestimated the impact of the foreclosure crisis in the overall economic recovery process not only zapping consumer confidence but also leaving homeowners threatened by foreclosures hanging from the banking and financial sector.
The crisis kept prices low in the real estate market, dragging sales and preventing new home builders from competing with those low prices. “The foreclosure was right at the front of the economic recovery and contributed greatly to the slowness and the flatness of the recovery,” Cisneros said. “Although in the last year and a half the Administration has really stepped up and launched a number of different programs, I believe the banking sector has not done all they could.”