’ t know how the pandemic will proceed and how that will affect the u. s. economy, but i think we are currently on a good path, and our policy is in a good place. thank you again for inviting me to speak to you today, and i would be happy to respond to your questions. 1 see michelle w. bowman ( 2021 ), “ the economic outlook and prospects for small business, ” speech delivered at the economic club of oklahoma, oklahoma city, oklahoma ( via webcast ), march 22. 3 / 3 bis central bankers'speeches

loan modification for the borrower. to ensure that modification requests are handled appropriately, we have leveraged the information from our consumer complaint investigation process. as a result of complaints received from consumers and members of the congress on behalf of their constituents, in october 2009 the federal reserve began a review of the loan modification practices of loan servicers for which we have supervisory responsibility. these reviews include on - site examinations that began in the second quarter of this year and are still underway. the federal reserve has emphasized the importance of using loan modifications as a means to avoid unnecessary foreclosures and continues to encourage effective loan modifications. prudent modifications that are consistent with safe and sound lending practices are generally in the long - term best interest of both financial institutions and borrowers. we have sponsored numerous modification fairs and events to bring lenders and borrowers face - to - face to explore alternatives to foreclosure. in addition to promoting loan modifications, the federal reserve has actively supported efforts to help communities that have been hard hit by vacancies and foreclosures. federal reserve staff members in our research, community development, and supervision and regulation divisions are collaborating to encourage foreclosure prevention at the local level and promote neighborhood stabilization initiatives. further, federal reserve staff members are conducting empirical research on mortgage - and foreclosure - related topics, and they are reaching out to industry and consumer experts as well. a key initiative developed under the leadership of the federal reserve bank of chicago has been the mortgage outreach and research effort ( more ). more involves all 12 federal reserve banks and the board of governors in a collaboration that pools resources and combines expertise to inform and engage policymakers, community organizations, financial institutions, and the public at large. in september 2010, more sponsored a discussion among experts and policymakers on effective strategies for stabilizing neighborhoods weakened by real estate owned by financial institutions and vacant properties. this meeting also included a publication developed by the board and the boston and cleveland federal reserve banks that featured analysis and promising practices from leading practitioners and applied researchers. 1 another important resource published this year by more summarizes key actions that the federal reserve has taken to address the foreclosure crisis. 2 in addition to encouraging loan modifications by other holders of mortgage loans, the federal reserve has worked with servicers of mortgages it acquired in actions taken to stabilize the financial system. on january 30, 2009, the board of governors adopted a policy requiring the pursuit of mortgage modifications prior to