New York State Senator Jeff Klein and Brooklyn City Council member Brad Lander will announce Wednesday proposals to make home foreclosures a less attractive alternative to banks, according to an article at wsj.com today by Shelly Banjo.
"The proposed legislation includes introducing a fine of $100 a day for banks that don't maintain foreclosed property," the article said, "and a requirement for lenders to post a bond for each vacant property. The latter is intended to ensure the city collects fees it assesses during the foreclosure period."
The article said that Mr. Klein, a Democrat representing parts of The Bronx and Westchester County believes that "lending institutions aren't taking this seriously enough," adding that "Using a stick, rather than offering a carrot, he says, 'will force banks to be more willing to modify mortgages and keep people in their homes.'"
New York City is second in mortgage modification activity after the Los Angeles area according to federal data, the article said, adding that "nevertheless, modifications have been made for only 6.1% of the New Yorkers eligible for the federal Making Home Affordable program."
"The proposed legislation includes introducing a fine of $100 a day for banks that don't maintain foreclosed property," the article said, "and a requirement for lenders to post a bond for each vacant property. The latter is intended to ensure the city collects fees it assesses during the foreclosure period."
The article said that Mr. Klein, a Democrat representing parts of The Bronx and Westchester County believes that "lending institutions aren't taking this seriously enough," adding that "Using a stick, rather than offering a carrot, he says, 'will force banks to be more willing to modify mortgages and keep people in their homes.'"
New York City is second in mortgage modification activity after the Los Angeles area according to federal data, the article said, adding that "nevertheless, modifications have been made for only 6.1% of the New Yorkers eligible for the federal Making Home Affordable program."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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