Empire Justice Center one of only two New York organizations to receive grant to help borrowers in crisis
For Immediate Release
March 17, 2008
Contact: Kristi Hughes, (585) 454-4060
Rebecca Case-Grammatico, (585) 454-4060
Ruhi Maker, (585) 454-4060
ROCHESTER, NY, March 17 -- In the wake of historic levels of subprime mortgage foreclosures, the Institute for Foreclosure Legal Assistance (IFLA), a project of the Center for Responsible Lending (CRL) announced it has awarded $6.5 million in grants to 27 legal-aid offices in 19 states and the District of Columbia. Empire Justice Center, a statewide non-profit law firm, is one of only two organizations to receive grants in New York State. The other New York grantee is South Brooklyn Legal Services.
Empire Justice Center received $65,000 per year over a three-year period to fund a new staff attorney position to help defend victims of predatory lending. The new grant will be targeted to expanding services in the Greater Rochester area.
“Every day more and more New Yorkers are losing their homes to foreclosure, and in most cases these families will not be represented by a lawyer,” said Becky Case-Grammatico, an attorney with the Empire Justice Center. “Borrowers across New York were given unaffordable loans that placed them in danger of foreclosure as soon as the loan was made. These homeowners need lawyers to restructure their loans and save their homes,” Case-Grammatico said.
The IFLA grant announcement comes on the heels of news from the Mortgage Bankers Association that foreclosures hit a record high in 2007’s fourth quarter. Additionally, Empire Justice Center partnered with national advocates to release a report that examined Rochester and six other big and medium-sized cities across the country. The report found that subprime lenders aggressively targeted Rochester homeowners right up to the collapse of the industry. Furthermore, 20 percent of all loans made in mostly-minority neighborhoods in 2006 were made by lenders known for making risky and high-cost loans -- compared with 4 percent in mostly white and more affluent neighborhoods.
”The new crisis caused by unaffordable adjustable rate mortgages is building on a decade of widespread foreclosures in the City of Rochester,” said Ruhi Maker, a senior attorney with Empire Justice. “Rochester has suffered from stagnant and declining values for a long time and many neighborhoods already have vacant houses. We cannot afford to add another vacant home in these neighborhoods. Inner ring suburbs are also beginning to see foreclosures,” Maker explained.
There is a critical shortage of attorneys to help the staggering number of borrowers assert their defenses to foreclosure. IFLA funds will fill a small part of this shortfall. In addition to providing direct legal assistance, Empire Justice will continue to be integrally involved in research and policy initiatives around the subprime mortgage lending issue and will continue to push for solutions to help homeowners caught in New York’s foreclosure crisis.
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