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52 STRONG HOUSING MARKET IN URBAN AREAS DRIVES MORE POSITIVE OUTLOOK ON LOCAL ECONOMIES Minorities were found to generally have a more positive outlook toward their local economy and job situation than whites across all income brackets, according to a survey released in June by NeighborWorks America. e differences in attitudes were generally split regionally, with those who live in urban areas responding more positively toward their local economies and job situations and those who live in rural areas responding more negatively, according to NeighborWorks. About 48 percent of those living in suburban areas and 57 percent living in urban areas said they thought their local economy was performing better overall than the national economy, compared to just 33 percent who live in rural areas. "Given the strength of the housing market in most urban and suburban areas, and the connection many make to home prices and a strong economy, it's not too surprising that people living in those areas have a more positive economic outlook as reported by our survey," said Doug Robinson of NeighborWorks. "Moreover, job growth is a key driver of home prices, so it also makes sense that people who are seeing strong home price growth also would say that their local job outlook is strong." Overall, about 50 percent of adults surveyed nationwide said their local economy was doing better than the national economy. About 32 percent said their local economy was doing worse than the national economy, according to NeighborWorks. e survey found 68 percent of Hispanics and 54 percent of African-Americans said their local economy is performing better than the national economy compared to 45 percent of whites. NeighborWorks reported the marked difference in the assessment of the local economy and job situation by region was driving the results. A larger percentage of African-Americans and Hispanics live in urban and suburban areas, where the attitudes are generally more positive toward the local economy and job situation. About 82 percent of rural residents are white, where the attitudes are generally more negative. NeighborWorks also reported the majority of those in higher income brackets were more positive toward their local economy; 64 percent of Americans with a household income of more than $100,000 per year believed their local economy was doing better than the nation overall. For those with incomes between $75,000 and $100,000, the number dropped to 55 percent; it fell to 45 percent for Americans with a household income below $75,000, according to NeighborWorks. For this survey, Anderson Robbins Research interviewed 1,308 adults living in the United States between April 30 and May 11, 2015. e sample polled included 1,005 adults and 303 interviews with Gulf Coast residents in Mississippi and Louisiana. SENATOR PROPOSES LEGISLATION TO HELP UNDERWATER BORROWERS AVOID FORECLOSURE U.S. Sen. Bob Menendez (D-New Jer- sey) proposed legislation to help underwater homeowners avoid foreclosure and remain in their homes, according to an announcement on Menendez's website. e Preserving American Homeownership Act is intended to help the estimated 5.1 million Americans who are underwater, or owe more on their mortgage than their home is worth. at number accounts for about 10 percent of homes with a mortgage in the United States, according to data recently released by CoreLogic. About 40 percent of those 5.1 million underwater bor- rowers (approximately 2 million) owe at least 25 percent more than their home is worth. Menendez's home state of New Jersey was one of the areas hardest hit by the foreclosure crisis and has routinely ranked near the top among states for foreclosure rate. In April, 5.1 percent of all residential homes in New Jersey were in some stage of foreclosure, the highest rate among states, according to CoreLogic. e national average for the month was 1.4 percent. New Jersey also had the nation's highest serious delinquency rate (8.5 percent) in April. Compounding the problem is the high num- ber of "zombie" foreclosures, or owner-vacated homes that are in the process of foreclosure. Re- ports have indicated New Jersey has the highest rate of zombie foreclosures in the nation. Many zombie foreclosure properties will end up sold in short sales or foreclosure auctions. "Far too many New Jerseyans are underwater on their mortgages and are all too familiar with the burden this brings," Menendez said. "My bill aims to give homeowners the break they need by working with banks to find acceptable solutions for everyone. Not only can we help families stay in their homes, we can mitigate the impact zombie foreclosures have on our com- munities and our economy." e national decline in home values since 2007 has caused many homeowners to be underwater on their mortgage. Underwater homeowners are more likely to default on their mortgages than those with equity. Menendez's bill seeks to help both home- owners and lenders. In exchange for reducing the amount of principal owed, banks would be entitled to a portion of any future increase in value the home might experience. is gives the underwater homeowners relief on their mortgages while banks take a short-term reduc- tion in exchange for a long-term gain pending the housing market recovery. Menendez said in his announcement that 80 percent of homeown- ers offered the chance to participate in a similar program offered by a private servicer agreed to do so and subsequently re-defaulted at a rate of just 2.6 percent. "e sad fact is that millions of homeown- ers still have underwater FHA and FHFA mortgages and many are facing foreclosure," said Phyllis Salowe Kaye, executive director of New Jersey Citizen Action. "Principal reduction is the most effective way to keep people in their homes, to prevent foreclosures and to stabi- lize neighborhoods that have been decimated by vacant and abandoned properties. Senator Menendez's bill offers real solutions. It should be supported and passed quickly by Congress."

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