March 6, 2008
Congressional
Candidate Tracey Brooks Calls For Immediate Action to Address the
Looming Sub-Prime Mortgage Crisis in the Capital Region
Tracey Brooks, Congressional candidate in the Capital
Region’s 21st District, today called for immediate congressional and
state action to address the looming sub-prime mortgage crisis in the Capital
Region.
“It is vital that elected leaders in Washington and
Albany work quickly to pass legislation to protect New York families from being
put out on the street and the economy from being put in further jeopardy.”
Brooks continued: “Although the Capital Region has
not yet been hit as hard as other regions of the country, experts say it’s only
a matter of time, so we should take that early warning to provide more protections
for homeowners, restructure these shaky loans and make appropriate regulatory
changes to prevent further harm to our housing market and local economy. ”
Under the
Bush administration, unregulated mortgage lenders sold unaffordable sub-prime
mortgages to buyers. In the last
week, economists testified to a panel of state lawmakers that the sub-prime
mortgage crisis will likely worsen in the coming year for New Yorkers as
interest rates on many adjustable-rate mortgages are due to increase
significantly.
“For too long under the Bush administration,
unregulated mortgage companies have been allowed to prey on vulnerable
borrowers,” said Brooks. “We need to
change the way business is done in Washington and I plan on doing just that by
enacting meaningful legislation to protect our neighbors, businesses, and the
economy from further disrepair from these so-called sub-prime loans and other
types of predatory and misleading lending practices.”
Local news outlets report there have been 57,000
foreclosure proceedings in New York in the last year—the ninth highest state
nationally and a 70% increase from 2005.
According to
a recent report published by the Joint Economic Committee (JEC), the number of
subprime foreclosures in New York will total 67,800 between third quarter 2007
and the end of 2009, while subprime mortgage-related foreclosures will cost New
York $9.52 billion over the second half of 2007 through the end of 2009.
“The housing crisis is felt by everyone in the state,” said Brooks. “Foreclosed homes and families faced with
bankruptcy will lead to decreased consumer spending, negatively impacting our
local economy. I am committed to
returning the focus to the people of the Capital Region, and when elected to
Congress, I will work to do just that.”
As a lifelong resident of the Albany area and the
Capitol Regional Director for Senator Hillary Clinton for the last three years,
Brooks enters the race with working knowledge of the problems facing the region
and experience in finding solutions to them. Brooks has spent much of her time
since announcing her candidacy visiting farmers, seniors, small business
owners, manufacturing companies, technology learning centers and families
across all seven counties of the District talking about the issues that really matter
to people.
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