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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

Top Ten Ways The CFPB Can Help You With Financial Questions
The U.S. PIRG Education Fund has put together this great resource of how the CFPB can help you. It includes information on how to make complaints to the CFPB. Read More

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


Subprime Mortgage Lending & Predatory Lending: Articles



IN THE NEWS

WATCH: The Zombie Home Apocalypse In Monroe County
According to Rebecca Caico, Senior Staff Attorney with Empire Justice Center, there are thousands of zombie properties in Monroe County. We’ll discuss how they’re haunting taxpayers in ways they may be unaware of. Read More

Media Advisory: New Report Shows That African American and Latino Borrowers and Neighborhoods of Color Continue to Have Little Access to Home Purchase Lending
Media are invited to a community forum releasing Empire Justice’s report, “The River Runs Dry II: The Persistent Mortgage Drought in Rochester’s Communities of Color.” Read More


Subprime Mortgage Lending & Predatory Lending: In theNews



POLICY ADVOCACY

Empire Justice Memo of Support: Improving Mortgage Foreclosure Settlement Conferences
This bill provides clarifying amendments to CPLR 3408, bringing the statute in line with the rules and practice of the courts. Read More

Empire Justice Memo of Support: Provide Clarity Regarding Standing to Sue in Foreclosure Actions
This bill provides a homeowner defendant the right to challenge standing at any time they learn that the plaintiff may not be the rightful party during a foreclosure proceeding. Read More




PUBLICATIONS

The Lingering Storm: Mortgage Lending Disparities on Long Island
The Lingering Storm: Mortgage Lending Disparities on Long Island examines mortgage lending, denial rates, and denial disparities in 2013. In an effort to combat our nation’s discriminatory housing policies, we offer several recommendations for policy makers at all levels of government. Read More

 

The River Runs Dry II: The Persistent Mortgage Drought in Rochester’s Communities of Color
"The River Runs Dry II: The Persistent Mortgage Drought in Rochester’s Communities of Color” analyzes home purchase lending in the Rochester metro area and the City of Rochester. 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

Top Ten Ways The CFPB Can Help You With Financial Questions
The U.S. PIRG Education Fund has put together this great resource of how the CFPB can help you. It includes information on how to make complaints to the CFPB. Read More

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