 NEDAP News | Vol. 2 Issue 3 | March 2007
Welcome to the March 2007 edition of NEDAP News
NEDAP Issues Report on Discriminatory Mortgage Pricing in NYC
NEDAP issued a report this month, "Paying More for the American Dream," which documents that blacks and Latinos in New York City are far more likely than whites to pay high interest rates for home purchase loans. NEDAP's research found that blacks in NYC were more than 12 times, and Latinos almost 8 times, more likely to receive a high-cost "subprime" home purchase loan than white borrowers in 2005.
NEDAP co-authored the report with the California Reinvestment Coalition, Community Reinvestment Association of North Carolina, Empire Justice Center, Massachusetts Affordable Housing Alliance, and the Woodstock Institute. According to the groups' research, New York has the greatest disparities in mortgage pricing by race of the six cities examined for the report. NEDAP's executive director co-presented the report's findings at the March meeting of the Federal Reserve Board Consumer Advisory Council.
Click here for a copy of the report and here for the press release.
Hot Off the Press: Banks Drop Predatory Loan Product
In March, HSBC announced that it will discontinue making "paystub" and "holiday" loans, which are high-cost, unsecured loans issued through tax prep sites like Jackson Hewitt and H&R Block, before tax season even begins. JPMorgan Chase followed suit soon thereafter and announced that it too will cease offering paystub loans.
NEDAP and advocacy groups from across the country had been pressing the three major banks that make paystub and holiday loans - HSBC, JPMorgan Chase and Santa Barbara Bank & Trust - to stop making these loans, as well as traditional tax refund anticipation loans (RALs). NEDAP is now calling on Santa Barbara Bank & Trust to follow the other banks' example and immediately discontinue making paystub and holiday loans.
For a copy of NEDAP's press release on HSBC's announcement click here.
Workshop Series in Full Swing! Register for Upcoming Sessions
 NEDAP's 10th Annual Community Reinvestment Workshop Series got off to a lively start in March, with more than 75 organizers and advocates attending the first two of six sessions, "Emerging Issues in Predatory Lending" and "Spotlight on the Debt Industry."
The workshop series will continue on Tuesday, April 10 with "High Cost of Credit in Low Income Communities." The workshop will address the proliferation of high-cost credit and its destabilizing effect on NYC neighborhoods - from tax refund loans and rent-to-own stores to credit repair and debt consolidation scams, high-cost credit cards and payday lending. With guest presenter Chi Chi Wu from the National Consumer Law Center.
On Thursday, May 3 NEDAP will hold the fourth session, "Immigrant Financial Justice Organizing," which will highlight local campaigns to expand fair financial services access and promote reinvestment in immigrant communities. New community education material and research on ITINs, consular IDs and remittances will be presented.
Click here for more information and to register, and here to download the workshop series flyer (PDF).
Community Training and Advocacy Roundup
In March, NEDAP:
- Helped lead city-wide and national discussions about subprime and predatory lending, mortgage pricing discrimination and the impact of rising foreclosures in New York. NEDAP's research and analysis were covered extensively by the press, including:
- Conducted community workshops for first-time homebuyers and homeowners, in conjunction with the Hanson Place Central United Methodist Church in Fort Greene, Delta Sigma Theta sorority, Bronx Community Board 3 and Margert Community Corporation in Far Rockaway.
- Hosted a site visit from social work students and faculty from the University of West Indies, Jamaica.
University of West Indies students and faculty with NEDAP's Mark Winston Griffith
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