September 7, 2007 — Edward “Ned” Gramlich, a former member of the Board of Governors of the Federal Reserve System and former chairman of NeighborWorks America, died of leukemia on September 5 at the age of 68. A strong and consistent advocate for consumer protection in the financial arena, Gramlich served on NeighborWorks America’s board of directors from 1999 until 2005, and as board chair from 2001 to 2005.

“Ned’s leadership was instrumental to our success and shaped a strategic direction for our work going forward,” said Kenneth D. Wade, NeighborWorks America CEO. “Through his leadership we launched our NeighborWorks Center for Foreclosure Solutions in 2004, a visionary move given the challenges in the market today."

“Ned was a great board member and board chair,” Wade added. “We are very grateful for his commitment to NeighborWorks America, which has made a lasting impact not only on our work but also in the thousands of lower-income communities we serve.”

Among his accomplishments at the Federal Reserve, Gramlich led a nationwide effort to educate community leaders on abusive lending practices, particularly those targeted at female, elderly and minority borrowers. Federal Reserve Chairman Ben Bernanke praised Gramlich for his "leadership in consumer protection issues" and his work in helping to restructure the way the Fed's discount loan window operates.

Speaking at the 25th anniversary of NeighborWorks America in 2003, Gramlich warned about predatory lenders and “programs in which lenders allegedly take advantage of unsuspecting borrowers through terms that hold unpleasant surprises for the borrower down the road and that often result in lenders foreclosing on properties.” He talked about how NeighborWorks was one of the first programs to recognize the need to defend the gains that it and other housing programs had already made.

“Ned Gramlich saw the early ripples of the subprime and foreclosure problem in distressed neighborhoods and understood those ripples could turn into a tidal wave," said Steve Tuminaro, director of public policy and legislative affairs for NeighborWorks America. “Part of his giftedness was that he helped those around him develop by his knowledge and character.”

A distinguished economics professor and the former dean of the School of Public Policy at the University of Michigan, Gramlich was appointed to the seven-member Fed board in 1997 by President Clinton. He served until August 2005. He resigned to return to the University of Michigan, where he served as an acting provost in 2005 and 2006.

Gramlich joined the Urban Institute in 2006 and focused on community redevelopment, affordable housing, and entitlement issues. His keystone work was Subprime Mortgages: America's Latest Boom and Bust, which he wrote and edited as he was undergoing medical treatment.

Bernanke, who served on the Fed board with Gramlich, said, "Those who knew him will miss not only his penetrating insight and shining intelligence but also his great wit and warmth."

Gramlich is survived by his wife Ruth, children Sarah and Robert, six grandchildren, his parents, two brothers, and a sister.