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Forum targets subprime crisis: At City Hall event, Rev. Jesse Jackson, U.S. and city officials call for a federal
stop to loan 'hemorrhaging'
By: Pervaiz Shallwani, Newsday
Date: January 6, 2008
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The Rev. Jesse Jackson, joined by members of Congress and the City
Council, said yesterday it is time to address the subprime lending crisis that is
devastating families around the country. An overflow crowd packed City Hall, some
giving emotional testimony on the impact of what Jackson called the "central-most
issue in America today." Following up on a recent march on Wall Street to raise
awareness of the crisis, Jackson spearheaded this forum as part of his Wall Street
Project's 11th annual Economic Summit this week. Jackson, who was joined by Rep.
John Conyers of Michigan and Rep. Sheila Jackson Lee of Texas, called on the Bush
administration to more vigorously go after lenders who have misled homeowners.
"There must be more visibility and more focus on dealing with our domestic economy,"
Jackson told the crowd. In an interview afterward, he said the issue is going to
be an increasingly prominent one on the presidential campaign trail. "We
want to challenge them to put in their debate their remedy to stop the foreclosure
hemorrhaging," Jackson said of the candidates. Speaker after speaker yesterday
assailed the practice while the homeowners who showed up in droves gave accounts of
their loss. Maggie Larkins, 51, of East New York, talked about how a predatory
lender who has since been arrested gave her a bad loan that resulted in the cost of
her home escalating from $102,000 to $308,000. For now she is still in her home.
"My health deteriorated, but I kept on fighting," she said. Larkins noted that
after her lender was arrested, she won a one-year reprieve to stay in her home.
Council members are using testimony like Larkins' as valuable insight on how
predatory lenders bilk customers. Jackson announced he will lead a march to the
federal Department of Housing and Urban Development on Jan. 22. According to a
study published by the Furman Center for Real Estate and Urban Policy, in 2006 28.6
percent of the loans issued to Latino borrowers and 41 percent of the loans issued
to African-Americans were subprime loans. The concentration of subprime lending in
these communities has left them to bear the brunt of the 37 percent increase in
foreclosure filings recorded between 2006 and 2007, the report said.
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