Nevada currently has the unfortunate distinction of leading the nation in foreclosures. One foreclosure can reduce nearby property values and home equity as much as $220,000. The Center for Responsible Lending estimates that roughly one in three households will see their property values drop by $5,000 on average as mortgages from 2005 and 2006 reset at higher interest rates, and a foreclosure lowers the price of neighboring properties by 0.9 percent on average.

Homes in foreclosure strain local governments too, since they often become sites for crime or other neighborhood problems. Just one foreclosure can impose up to $34,000 in direct costs on local government agencies, including inspections, court actions, police and fire department efforts, potential demolition, unpaid water and sewage, and trash removal.

We need to re-establish a housing market that has long-term stability in which private capital, not the federal government, is the primary source of mortgage financing. Any financial regulatory reform bill in the future should stop taxpayer-funded bailouts, make further reforms to Fannie Mae and Freddie Mac, and help address the struggling housing market which is especially problematic in Nevada.