ASK VICTIMS OF PREDATORY LENDING TO REPORT ABUSE
Wasting No Time, Legislator-Elect Gregory Asks Victims of Predatory Lending to Come Forward
Horsley Continues Push for Legal Action Against Predatory Lenders
Lawmakers Flag Discriminatory Lending Practices
Lindenhurst, New York – Today, Legislator Wayne Horsley (D-Babylon) and Legislator-Elect DuWayne Gregory (D-Amityville) revealed that residents of Suffolk’s minority neighborhoods have been victimized by “reverse redlining,” a discriminatory lending practice that targets an area with predatory lending practices because of the race or ethnicity of the area’s residents. Reverse redlining violates the federal Fair Housing Act. Both Legislators are asking residents to report suspected predatory lending to the Suffolk County District Attorney.
“There is no mistaking the facts. Wall Street set its sights on minority and low-income neighborhoods in Suffolk County to make a fast buck at the expense of hard-working residents pursuing the American dream of homeownership,” said Horsley. “As the County continues to uncover the full effects of the subprime mortgage failure all residents who suspect they have been victimized by “reverse redlining” should report it to the Office of Minority Affairs immediately and all residents at risk of mortgage default are encouraged to call the LIHP immediately.”
Reverse Redlining in Suffolk
According to the Empire Justice Center minority homeowners are three times more likely than non-minority homeowners to live in the ten most highly impacted zip codes. The Empire Justice Center reports 66% of Suffolk County’s minority homeowners live in the highly impacted zip codes, while only 20% of Suffolk County’s non-minority homeowners live in these areas. The three zip codes with the highest number of loans in foreclosure or over 30 days late are: Amityville with 623 loans in foreclosures, Brentwood with 526 loans in foreclosure, and Central Islip with 433 loans in foreclosure. Furthermore, Wyandanch had the highest percentage of home foreclosures of any zip code in New York State with 581, or 43.4% of all subprime loans in foreclosure or 30 days late
Legislator-Elect DuWayne Gregory, “Low income and minority areas have been severely impacted by these predatory lending practices. While Wall Street celebrated record profits the residents of Wyandanch, Amityville, and Suffolk were busy fighting for their homes. It is imperative that our residents step forward and to report an allegation of ‘reverse redlining’ and to seek counseling on how to remain at home.”
Community Response
Anne Stewart, Director, Wyandanch Weed & Seed Program, stated, “At every turn the community of Wyandanch, and others like it, have to fight for every inch of the American dream, and now to see these residents wronged by the misdeeds of Wall Street fat cats, through no fault of their own, is tragic. This unnoticed plight must be exposed for what it is and confronted. ”
Sondra Cochrane, Director, Wyandanch Community Development Corporation, said “I am in this community everyday trying to help families find a home that is right for them and these predatory lenders are destroying everything that we have worked so hard to build. The people who are targeted for ‘reverse redlining’ are the people who can least afford to pay. ‘Reverse redlining is an immoral practice and it needs to be confronted and ended.”
Edna Newton, Chair, Wyandanch Beautification, stated, “I am a life long resident of Wyandanch and to see the effects predatory lending has had on my community truly disturbs me. These are decent people who are attempting to raise their families, and they should not have to be subject to predatory practices that prey on the hopes of every American family, the dream of homeownership.”
On July 28th, 2008, for two weeks, Community Development Corporation of Long Island has opened its Housing Choice Voucher Program wait list. The list will close on August 11, 2008. For more information or to speak with a housing educator contact the CDC of LI at (631) 471-1215.
The Long Island Housing Partnership offers a HUD counseling program. If it appears that the account can be brought current, the counselor works with the client and the mortgagor to arrange a mutually agreeable payment plan. Contact the LIHP at (631) 435-4710 for more information.
Legislation
Legislator Horsley has introduced legislation to pursue legal action against predatory lenders. Horsley’s legislation will be eligible for a vote on August 5, 2008, and would direct the county attorney to determine the feasibility of Suffolk County suing subprime lenders for damages and other violations of law.
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