To understand where we are now and where we might be headed in the near- and mediumterm, I am monitoring four conditions that seem most likely to determine the amount of credit that will support the recovery as we emerge from the recent financial crisis:   First, the condition of the banking system will certainly influence the capacity for lending.
We continue to support industry-led efforts, especially those of HOPE NOW, in pursuing flexible approaches to stem the rise in foreclosures and to deal with their effects. Earlier this year, we embarked on a joint effort with NeighborWorks America on neighborhood stabilization to help communities develop strategies for addressing increases in foreclosures and vacant properties.