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Subprime Mortgage Lending & Predatory Lending

Subprime lending refers to making loans that are in the riskiest category, traditionally to people with less than good, or “prime” credit.  It is generally thought today, though, that many of the subprime loans that were made in the past decade were actually sold to people with good credit.  Subprime loans carry high fees and higher interest rates, and may include a number of predatory loan terms such as significant interest rate increases, balloon payments and payments that cause the loan to negatively amortize (meaning, the principal balance increases over time). 

New York has two strong anti-predatory lending laws.  NYS Banking Law sections 6-l and 6-m prohibit certain practices when making “high-cost” loans or “subprime” loans in New York.   

Curbing the Mortgage Meltdown, The Impact of Foreclosures on New York's Economy and Communities (8/5/2008) - An Analysis of Securitized Subprime Loans At Risks (In Foreclosure, Delinquent or Scheduled for Interest Rate Increases).

 


ARTICLES

New Yorkers for Responsible Lending Information on the Foreclosure Shadow Docket
Frequently asked questions and other information on New York's foreclosure Shadow Docket. Read More

Down Payment Rules Are at Heart of Mortgage Debate
It seemed an easy fix to prevent the excesses of the housing market: make home buyers put more money down. But as the housing market starts to return and the subprime mess fades from memory, the issue is up for debate. Read More

Vacant Properties: Growing Number Increases Communities' Costs and Challenges
According to Census Bureau data, nonseasonal vacant properties have increased 51 percent nationally from nearly 7 million in 2000 to 10 million in April 2010, with 10 states seeing increases of 70 percent or more. High foreclosure rates have contributed to the additional vacancies. This report looks at the costs of these properties to communities. Read More

The Foreclosure Crisis and Its Impact on Communities of Color: Research and Solutions
This report examines the success and weaknesses of the major federal and private foreclosure prevention efforts and offers proposed solutions to rebuild the homeownership markets. Read More


Subprime Mortgage Lending & Predatory Lending: Articles


IN THE NEWS

NY attorney general threatens to sue Wells Fargo, Bank of America
New York Attorney General Eric Schneiderman says he plans to sue Wells Fargo and Bank of America for violating terms of the $25 billion National Mortgage Settlement. Read More

Many Long Island Communities Face Long Term Impact of Foreclosures
Study identifies hardest hit towns and strategies to keep families in their homes and limit damage to the local tax base. Read More


Subprime Mortgage Lending & Predatory Lending: In theNews


POLICY ADVOCACY

Highlights from the 2011 Legislative Session
After all the emails, strategy sessions, meetings, Facebook updates and trips to Albany, the 2011 Legislative session closed with a huge amount of excitement about New York’s new civil rights law. Read More

Empire Justice Center Testimony on Discriminatory Mortgage Practices in New York State
Testimony before the Assembly Standing Committee on Banks on discriminatory mortgage practices in New York State. Read More



PUBLICATIONS

Paying More for the American Dream V
Access to mortgage refinance loans sharply declined in communities of color – and increased substantially in predominantly white neighborhoods, according to a report released today by a multistate collaboration of regional research, policy and advocacy organizations, including Empire Justice Center.... Read More

 

The Mortgage Meltdown II
New York's continuing foreclosure crisis and the need to help homeowners avoid the loss of their homes Read More

 

Subprime Mortgage Lending & Predatory Lending: Publications


NEWSLETTERS

Policy Matters April 2012
Empire Justice Center’s newsletter focused solely on policy. This inaugural issue will focus on the recently passed state budget and how it will affect lower income New Yorkers, including people at risk of foreclosure, health care consumers, people with disabilities and those needing civil legal services. Read More



TRAINING AND EVENTS

Representing Homeowners at Mandatory Settlement Conferences
Mandatory settlement conferences are now an integral component to the foreclosure process for subprime loans. The governor has signed a new law that expands the settlement conferences to all residential loans. Pro Bono lawyers have been approved to represent homeowners for the limited capacity of these settlement conferences. This training addresses important considerations for lawyers willing to represent homeowners in this capacity. Read More

New Approaches to Stabilizing Homeowners and Communities in Western NY
This taped broadcast is geared towards housing counselors, legal services organizations, lenders, public officials, community-based organizations, and anyone who is concerned with the impact of the foreclosure crisis on homeowners and neighborhoods in the western part of the State. Discussion topics include information about housing counseling standards, specialized foreclosure trainings, State programs addressing the foreclosure issue, and successful approaches to reducing foreclosures, among other topics. Read More



RESOURCES

Attorney general sues HSBC over foreclosures
Thousands of New Yorkers have likely been denied a better chance to get their homes out from under foreclosure by HSBC Bank USA and its Depew mortgage operations facility, Attorney General Eric Schneiderman is charging in a new lawsuit. Read More

Free Housing Counseling and Legal Services are available throughout New York
If you are behind in your mortgage, you should contact your mortgage servicer immediately and seek assistance from a non-profit housing counseling agency in your county. The NYS Division of Housing and Community Renewal (DHCR) maintains a list of reputable non-profit housing counselors on their website. Read More

Subprime mortgage lending and predatory lending
Subprime lending refers to making loans that are in the riskiest category, traditionally to people with less than good, or “prime” credit. It is generally thought today, though, that many of the subprime loans that were made in the past decade were actually sold to people with good credit. Read More