Forbes Magazine has named Jacksonville, Florida the foreclosure capital of America for 2009. Can a local community implement a strategy to combat a global problem? Absolutely, and in this four part series, I will discuss how Jacksonville and other cities can fight foreclosures. After all, as we wait for the federal government to take real action, real middle class Americans are being displaced from their homes. The first step of problem solving is to understand the problem. The problem of foreclosures is the securitization of residential mortgages on Wall Street, known as a mortgage-backed security (MBS). Baby-boomers, representing the largest sector of our population, are getting close to retirement, and fund managers were under pressure to provide a safe investment with a high yield. The federal government had implemented a program encouraging lenders to make home loans to middle-income Americans to increase home ownership. A Wall Street whiz, Lewis Ranieri (pictured left), determined you could reduce the risk associated with a sub-prime mortgage by bundling it together with thousands of similar mortgages.