AARP commends the leadership of Assembly Speaker Sheldon Silver for proposing a comprehensive solution to the foreclosure crisis in New York State. Many older New Yorkers who had accrued a lifetime of equity in their homes were targeted by subprime lenders and are now faced with losing their homes.
The Assembly approach addresses the crisis head-on by helping those in default and in foreclosure with a grant fund and resources for financial counseling. In addition, the Assembly calls for the passing of the Responsible Lending Act of 2008 to address the predatory nature of mortgage lending in our state to prevent future foreclosures.
The foreclosure rate is the highest in the subprime market-place where there is a history of unscrupulous lending practices. These practices have targeted low- to middle-income persons and the elderly. Borrowers 65 years of age or older have been found to be 3 times more likely to hold a subprime mortgage than borrowers less than 35 years of age.
According to the National Center for Responsible Lending’s “Losing Ground” Report, one out of every five subprime mortgages that has originated during the past two years will end in foreclosure. For an older person, a foreclosure can mean losing a retirement nest egg as well as a lifetime of family memories without the ability to ever recover.
AARP believes the recommendations outlined in the Assembly plan announced today will undoubtedly save many New Yorkers from losing their homes.
