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STATEWIDE RESPONSIBLE LENDING COALITION CALLS FOR IMMEDIATE FORECLOSURE MORATORIUM
The Steering Committee of New Yorkers for Responsible Lending (NYRL), a coalition of 143 not-for-profit organizations statewide, today called for a temporary moratorium on foreclosure actions on all primary residences in New York State. The group called on all mortgage lenders and servicers to halt foreclosure filings and actions until at least eight weeks after the Obama Administration’s anticipated foreclosure mitigation plan goes into effect.
Thousands of New York homeowners face foreclosure, at the same time that dramatic new action at the federal level is expected to give borrowers and lenders substantially more tools to modify loans and prevent foreclosure. More than 32% of all subprime adjustable rate mortgages were seriously delinquent or in foreclosure in New York at the end of 2008.
The Office of Thrift Supervision recently called on the federal savings banks it regulates to halt foreclosures until the Administration’s new plan is finalized. Following the OTS’ announcement, Citigroup and JPMorgan Chase pledged that they will halt foreclosures until at least early March 2009, while the Administration develops its plan.
“A foreclosure freeze, in combination with a meaningful federal plan to get borrowers into sustainable loan modifications, is absolutely vital to slowing the escalating foreclosure rates in New York,” said Josh Zinner of the Neighborhood Economic Development Advocacy Project, in New York City.
“It would not be in anyone’s interest for a lender to proceed with a foreclosure today – and for a New York homeowner to lose her home — when that foreclosure could be averted under the President’s new plan,” said Kirsten Keefe of the Empire Justice Center, in Albany.
# # # Founded in 2000, NYRL promotes access to fair and affordable financial services and preservation of assets for all New Yorkers and their communities. http://www.nedap.org/programs/nyrl.html
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