Foreclosures in New York: What's Really Going On

Four years into the mortgage meltdown, the home foreclosure crisis in New York State continues unabated, particularly in low income neighborhoods and communities of color. Recent reports on foreclosures in New York cite a decline in foreclosure actions filed in New York courts. These reports, however, fail to include key information needed to understand the true foreclosure picture and formulate effective public policy. According to NEDAP's analysis of new mortgage default and delinquency data, foreclosure risk remains disturbingly high in New York. NEDAP found that more than 345,000 mortgages were in default or delinquent in New York State, in 2011. This staggering number -- based on 90-day preforeclosure notices that New York now requires servicers to send to homeowners -- indicates severe mortgage distress and risk of foreclosure and destabilization for huge numbers of families and communities throughout the state.The number of foreclosure actions (lis pendens) filed against New York homeowners has indeed dropped, notwithstanding the extremely high number of mortgage defaults and delinquencies. The decline in foreclosure filings, however, is largely attributable to banks' inability to produce documentation required to initiate foreclosure cases, as New York courts heighten their scrutiny of banks' foreclosure filings. NEDAP found that 90-day pre-foreclosure notices in New York City, for example, outnumbered foreclosure actions filed in New York courts 14 to 1

Paying More for the American Dream IV: The Decline of Prime Mortgage Lending in Communities of Color

The financial crisis has led to significantly reduced access to mortgage credit for all borrowers and communities. In neighborhoods of color, however, where the foreclosure crisis has taken an especially severe toll, access to prime, conventional mortgage loans has declined precipitously -- to a much greater degree than in predominantly white neighborhoods. Families living in neighborhoods of color disproportionately lack access to affordable loans needed to purchase or improve their homes or to refinance their mortgage to secure a lower monthly payment. As this lack of access and the ongoing foreclosure crisis wreak havoc on communities of color, neighborhood rehabilitation efforts, includingsustainable loan modifications, are desperately needed to help families avert foreclosure and stay in their homes, and to prevent further destabilization of neighborhoods.This report focuses on changes in lending patterns in seven key metropolitan areas: Boston, MA; Charlotte, NC; Chicago, IL; Cleveland, OH; Los Angeles, CA; New York, NY; and Rochester, NY. It examines changes in the levels of prime, conventional home purchase and refinance mortgage lending in predominantly white communities and communities of color between 2006, the beginning of the foreclosure crisis, and 2008, the most recent year for which national mortgage lending data are available.The report also examines lending patterns for the four largest bank holding companies: Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Finally, the report includes recommendations for federal policy reforms that would require financial institutions to issue credit responsibly and protect all communities, particularly communities of color, from abusive lending practices

Paying More for the American Dream III: Promoting Responsible Lending to Lower-Income Communities and Communities of Color

This report analyzes 2007 Home Mortgage Disclosure Act data and finds that, in low- and moderate-income communities, depositories with CRA obligations originate a far smaller share of higher-cost loans than lenders not subject to CRA. It also finds that lenders covered by CRA are much less likely to make higher-cost loans in communities of color than lenders not covered by CRA