State Budget To Include Funds For Those Affected
By Sub-Prime Mortgage Industry

Assembly Speaker Sheldon Silver, Ways and Means Committee Chair Herman D. Farrell, Jr. and Banks Committee Chair Darryl C. Towns today announced that the SFY 2008-09 budget would provide $25 million in grants through the state Division of Housing and Community Renewal (DHCR) for legal services and financial counseling to homeowners facing default and foreclosure due to the unscrupulous practices of the mortgage industry.

"With each passing month we hear more and more about the strain so many homeowners experience as a result of disastrous sub-prime lending," said Silver (D-Manhattan). "In this budget, the Assembly Majority will provide much-needed assistance to those who face losing their most important investment, a home. With the help of dedicated professionals, it is our hope that we can help families keep their dreams of homeownership alive."

"The Assembly understands that for homeowners facing foreclosure, the best chance to save their house is with committed financial and legal help," said Towns (D-Brooklyn). "With this budget, the Assembly assists those affected by sub-prime lending to navigate a desperate and confusing terrain and keep the homes they have worked so hard for."

"The sub-prime crisis has done serious damage to the financial services industry and also threatens the well-being of thousands of families here in our state," said Farrell (D-Manhattan). "By taking action to help hardworking residents keep their homes, New York can lead the way in addressing what has become an economic nightmare."

"The assistance this budget provides to sub-prime lending victims is an important step in addressing what has become a national crisis," said Lopez (D-Brooklyn). "Helping families in our towns, villages and cities keep the homes they've worked hard for is an obligation of the Assembly Majority as we deal with the fallout of the unethical practices of the mortgage industry."

The state budget will make available $25 million through DHCR to assist homeowners affected by sub-prime loans and provide grants and aid to non-profit organizations involved in counseling, mediation, legal services and negotiation.