Brooklyn, New York – Congressman Edolphus "Ed" Towns (NY-10) is hosting a Predatory Lending Town Hall Meeting on Saturday, May 3rd from 10:00 A.M. to 12:00 P.M. at the Beraca Baptist Church, located at 9602 Flatlands Avenue at the corner of East 96th Street. 

District Attorney Charles Hynes, the featured guest speaker credited with indicting violators for predatory real estate fraud practices, along with a mortgage fraud expert will address preventative measures and issues in predatory lending such as: discriminatory interest rates, intense pressure tactics that manipulate people into higher-risk loans with steep repayment penalties, and excessive fees for unnecessary or nonexistent services.  This meeting is free and open to the public; all residents are encouraged to attend.

“I am outraged with the pervasive practices of lenders who deceptively convince borrowers to agree to unfair and abusive loan terms,” said Congressman Towns. “I want residents to be aware of the malicious, aggressive and deceptive tactics of predatory lenders that prey on the elderly, the poor, and minority communities,” insisted Towns.

According to the Federal Reserve Bank of New York, “a Brooklyn community had the highest subprime foreclosure rate in the state in October.  One in four homeowners with subprime mortgages in the 11233 zip code, which spans Brooklyn's Bedford-Stuyvesant neighborhood, lost their homes,” the Fed said. 

When predatory lenders calculatingly target young, elderly, minority, or financially inexperienced borrowers; this transaction can have severe consequences for families and communities.  Predatory lenders are identified as such because they pursue those who have bank accounts, continued income or employment, little savings, poor credit ratings and, ultimately, fewer opportunities available to secure a traditional home loan.

Congressman Towns concluded, “To protect vulnerable citizens from these vicious predators, I am supporting legislation in Congress, such as the Foreclosure Prevention Act of 2008 in order to provide necessary resources for mortgage foreclosure assistance.  I am deeply concerned about this crisis and the impact on Brooklynites and Americans everywhere.  I will be fighting hard to assure that measures are in place, laws are enacted and penalties are enforced to address this on-going problem.”

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