Mark Winston Griffith

Stop in the name of ACORN: Foreclosure moratorium effort picks up steam

ACORN has become the latest warrior in the struggle to push through anti-foreclosure initiatives, putting their considerable political muscle behind a bill sponsored by New York State Assemblyman James Brennan that would place a one year moratorium on New York State foreclosure actions. (ACORN is planning a press conference at Brooklyn Borough Hall today, at 1 p.m., to discuss the legislation.) The basic idea - stopping the clock on foreclosure actions in an attempt to allow homeowners to explore loss mitigation options - has long been urged by a host of advocates, including DMI director Andrea Batista Schlesinger.

ACORN no doubt has the ear of lawmakers. At the Black and Puerto Rican Caucus meeting in February, the Attorney General's office, which was sponsoring a workshop on the subprime crisis along with assembly and senator Caucus members, literally turned over control of the meeting to New York ACORN executive director Bertha Lewis and a room filled with red-shirted ACORN members. Bertha proceeded to lead a revival meeting on the sins of subprime lenders and the virtues of the Brennan moratorium bill.

Once considered perhaps the least viable of various foreclosure prevention legislative proposals, the Brennan bill has been picking up momentum, even prompting attention from the New York Times earlier this week.

The Brennan bill joins other notable efforts to respond to the foreclosure crisis, including a proposal by Spitzer announced earlier this week to require lenders to send homeowners a pre-foreclosure notice at least 60 days before starting foreclosure action. The proposal includes other features, such as a mandatory settlement conference between the borrowers and lenders at the beginning of foreclosure proceedings, registration of servicers, and a series of consumer protection initiatives. The hope is that the Governor's bill will mesh with efforts, led by the New Yorkers for Responsible Lending, to establish an ability to pay standards for lenders and to update the New York State Anti-Predatory Lending Law.

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Posted at 7:20 AM, Mar 07, 2008 in Economy | Housing | Mortgage Crisis
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