RYAN APPLAUDS NEW HOUSING FORECLOSURE PREVENTION PROGRAM
Board Chair pledges to work with County Executive and community-based organizations to reduce mortgage foreclosures due to sub prime loans in Westchester

FOR IMMEDIATE RELEASE: October 5, 2007

From left, Gary Brown, Consumer Protection Director, State Senators Jeff Klein and Andrea Stewart-Cousins, County Executive AndySpano, Board Chair Bill Ryan, County Clerk Tim Idoni, WRO Director Geoffrey Anderson,Lynn Roque Alley, Regional Expanding Markets Director, Freddie Mac and County Legislator Lois Bronz at the news conference announcing new foreclosure prevention initiative.

Westchester County Board of Legislators Chairman Bill Ryan announced today that he will seek to secure funding for organizations that assist homeowners on the verge of foreclosure due to high sub-prime mortgages. Ryan made the announcement during a news conference in White Plains on Wednesday to introduce the “Don’t Borrow Trouble” program sponsored by Westchester Residential Opportunities, Inc. (WRO) Ryan says the sub-prime mortgage market is out of control and government must step in to help those homeowners who have fallen victim.

"Homeownership is part of the American dream," said Ryan. "Unfortunately, for many homeowners across the country, that dream has become a nightmare. The “Don’t Borrow Trouble” program will help keep homeowners from losing their investment.”

Ryan noted that Westchester has been hit hard by the sub-prime lending crisis. According to the Westchester County Clerk’s Office, judgments of foreclosures has risen by more than 52% over the last year.

WRO, a non-profit housing agency, has teamed up with Freddie Mac, one of the nation’s largest investors in residential mortgages, and Westchester County to provide information to homeowners on how to prevent devastating credit problems and where to go for free counseling to help them avoid foreclosure.

“As county legislators, we established laws in Westchester County that protected consumers from predatory lenders. I look forward to working with my colleagues to secure funding for organizations, such as WRO, that are dedicated to helping victims of unscrupulous sub-prime lenders,” said Ryan.

Sub-prime loans are loans normally offered to individuals whose credit history prevents them from securing a low-rate loan and first-time homebuyers. A typical sub-prime borrower has a low credit score and a history of late payments, charge-offs or bankruptcies. In some cases, sub-prime borrowers are drawn in by a low introductory rate, which then increases dramatically within the first two years to $3,000 or even $8,000 per month.