Mark Winston Griffith
Look for City and State Anti-Foreclosure Actions in 2008
As the foreclosure crisis continues to ravage the country, America's cities and states are having mixed results in the fight to stem foreclosures and guard against predatory lending practices.
Take the example of New York State, where Governor Spitzer's "State of the State" address called attention to some of his proposed anti-foreclosure policies: "We...must continue our shared efforts to make sure New Yorkers don’t fall victim to the subprime lending crisis...[W]e can continue to press banks to agree to mass modification of loans. And we can assure that our court system is not being used to treat homeowners unfairly...I will send you a bill that amends state foreclosure law to provide additional protections for homeowners. In addition, working with Attorney General Cuomo, I will submit legislation that enhances our anti-fraud laws, to ensure that those who engage in mortgage scams are punished."
New Yorkers for Responsible Lending praised Spitzer's commitments and urged him to work to enact the Responsible Lending Act (A. 8972) which, among other things, would establish an ability to pay standard and eliminate many abusive lending practices and products. NYRL commended the "Governor for his proposal that lenders issue a 60-day pre-foreclosure notice, and afford borrowers the opportunity to negotiate with lenders before a foreclosure action may be filed. NYRL also commends the Governor’s commitment to press banks to modify unaffordable loans."
In contrast, earlier this week, the New York Daily News editorial pages took a swipe at the Spitzer administration's Keep the Dream program, the State of New York Mortgage Agency's $100 million revolving loan fund designed to help homeowners refinance their mortgages at lower costs. The News took the Keep the Dream program to task for its unreasonable eligibility requirements and anemic marketing efforts which have resulted in only four applicants, and only two modified loans closings, over the past four months.
But if you're looking for aggressive efforts to tame subprime lenders, the New York Times ran a piece on Tuesday that highlighted municipal efforts to "make lenders responsible" for abusive lending practices. In particular, the Times reported on a law suit filed by Baltimore mayor Sheila Dixon (who is featured on DMI's Mayor TV) and the City Council against Wells Fargo for discriminating against black borrowers in Baltimore. Compare this to New York City where just a few years Mayor Bloomberg, with the help of the State Supreme Court, was successful in shooting down anti-predatory lending measures passed by the NYC City Council.
Posted at 12:38 AM, Jan 11, 2008 in Economic Opportunity | Mortgage Crisis | Permalink | Comments (4)
Comments
While the measures proposed by Gov. Spitzer are good, they are not enough to address the problems posed by "sub-prime" loans in NYS. Allowing sub-prime borrowers 60 days notice to renegotiate their defaulted loans will not help if the borrowers are left on their own. They need expert representation, but people who cannot make their mortgage payments, cannot pay for lawyers to vigorously represent them.
Money needs to be allocated for legal services. No foreclosure action should be permitted to proceed where borrows are representing themselves. Lenders have to know their practices will be subject to scrutiny in every foreclosure action. For example, careful document examination in Pennsylvania has shown that Countrywide, a major sub-prime lender, fabricated loan documents. Unless borrowers are represented effectively, predators will continue to use them as ATM machines.
Posted by: Daniel Millstone | January 11, 2008 08:09 AM
I agree. Thankfully, in New York City, more resources for legal services are on their way through efforts like the Center for NYC Neighborhoods. My hope is that will happen in New York State as well.
Posted by: Mark Winston Griffith | January 11, 2008 05:14 PM
On my URL at myspace.com/08nys you see the potential Albatross of NYC's Mayor Bloomberg should he ever enter the presidential race. It is alleged by this whislteblower Mayor Mike Bloomberg gired him an out of twon caribbean Headmaster who is an expert at the type of Racism not known on the mainland through a Tino Hernandez, Chairman of NYCHA and Vice ROY of New York City.
You shall see in a hour video flip chart presentation in six 10 minute segmanets for a one hour TV show to be aired on Queens County, New York Cable Asccess. It is alleged mr. Tino Hernandez and Ricardo Eleias Morales have instituted the kind of Negro Mulatto Oprression of the Blacks as it has been since the Colonial masters left their Half Breed offsprings to run the little islands. I am a Haitian National who was born and raised there and I was born and raised in Haitian Aristocracy and I am related to Former President Magloire, Former President Kebreau and 2nd cousin to Baby Doc. Trust me ai have lots of Negro Mulattos in my family becasue we the dark ones onw the land as descendants of the revolutionary slaves that routed the French for our Independence in 1804. See my presentation and call Ida M. Smith, Special Assistant to Congressman Gregory W. Meeks (New York 6th Congressional District) at 718-725-6000 and ask her for a copy of the 350 page three part volume book or body of evidence becasue I need help. My life is in danger
Posted by: philippe edouard Drice | January 13, 2008 12:21 PM
Gentlemen: We keep blaming the sub prime lenders, and the banks for this Foreclosure Meltdown, our homeowners are the ones who cashed out and took the money. While a few are real victims most took the money, others took positions to become real estate moguls creating overly artificial valued market when in fact "reality" the values were ridiculously over inflated due to a false demand. Lets add the new fuel costs, rising operating costs of a home, increased food market and retail prices, small increases that sucked out every extra penny from Americans. Wall street dropped Note trading due to the high risk and high expense in servicing during foreclosure preceding s . This all falls in one direction. Our Leaders, thank our Dumbest of all who single handedly tripled fuel prices, tripled home prices, And reduced the value of a single dollar to less than .14 cents. The billions sent overseas to fight a losing war could have saved a couple of thousand suffering homeowners.
Posted by: Mike Fish | January 16, 2008 01:16 PM