Lawmaker pushes to give predatory lending law teeth
Predatory loans with high interest rates are forcing Brooklyn homeowners into foreclosure, according to a report released Sunday by a state senator.
According to State Sen. Jeff Klein's report, the American dream of home ownership is becoming a nightmare, with lenders' credit ruined. Klein and other officials are drafting legislation to prevent predatory lending.
The senator's report also outlined local neighborhoods most affected by the nation's mortgage problems. In Brooklyn, the neighborhoods with the most foreclosures last year included East New York, with 507, and Bushwick with 497.
Industry experts predict New York will exceed last year's foreclosure filings by a whopping 60 percent.
"We have mortgage brokers who aren't really concerned about the ability of someone to afford a mortgage," Klein said. "They just want to sell as many mortgages as possible."