Frankly, this is a problem that should have been fixed long before Spitzer took office. It wasn't hard to see that sub-prime lenders were going to swoop into low-income areas and take advantage of low interest rates and unsuspecting borrowers. At least our new Governor is going to do something about the terrible practice of predatory lending.
From Crain's New York Business:
New York state Gov. Eliot Spitzer on Friday announced an interagency task force aimed at combating predatory lending practices throughout the state.
The task force -- Halt Abusive Lending Transactions -- is designed to help the public handle questionable lending practices in the subprime market, and to make it easier for low-income families to buy new homes.
"Lending practices that prey upon the public cannot and will not be tolerated," Mr. Spitzer said in a statement. "This task force will take a comprehensive look at the sub-prime lending industry, and recommend steps to protect borrowers, particularly minorities and the elderly.
The city alone is facing 15,000 foreclosures, ruining many families that were tricked into what they thought was a low interest loan. Now as payments soar higher and higher, people cannot afford to live in their homes anymore. Hopefully the Governor and AG Cuomo can do something about this escalating problem.
|