Taskforce Established to Tackle Predatory New York Mortgage Lending
Governor Eliot Spitzer has established a state interagency group charged with stopping predatory lending practices within the New York mortgage universe.
The interagency task force will be headed by Banking Superintendent Richard Neiman and will include the agency heads of the Department of State, the State of New York Mortgage Agency, the Division of Human Rights, the Consumer Protection Board, the Division of Housing and Community Renewal, the Governor’s Office of Regulatory Reform, and members of the governor’s executive chamber.
The task force will look for lending practices which prey on the public and recommend steps to protect home purchase loan borrowers, especially minority and elderly borrowers, the governor said.
The group will hold a series of regional meetings that bring together regulators, law enforcement, community representatives, and lending industry representatives. The first meeting was held in New York City on April 11 and a second will be held during the summer in Buffalo.
“By taking this grass roots approach to understanding the regional challenges facing [the New York housing market] we learn first hand how our current laws and regulations impact borrowers and whether any legislative or regulatory changes are needed, Neiman said.
The task force will also:
- Analyze foreclosure and mortgage lending data to identify borrowers and communities at the greatest risk;
- Develop loan and finance programs to help homeowners whose current mortgage loan payments are too heavy for their financial situation;
- Pursue enforcement actions against those who engaged in wrongful conduct when making loans and coordinate those enforcement actions with federal, state and local law enforcement agencies.
The State Of New York Mortgage Agency is already working to help low-income home buyers purchase a house without entering the subprime commercial market.
The agency is now offering a 40-year fixed rate loan for first-time home buyers and is working on a mortgage refinancing program for low and moderate income home loan holders.