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Housing Crisis, Efficient Government, Drug Abuse, Transportation and Economics, Parks and Recreation
HOUSING POLICY: Part 1
Hidden Threat to Neighborhoods
At a recent gathering of Ward 4 residents I had a brief encounter with a Ward 4 constituent who had been forced because of a health situation to borrow from a subprime lending institution. Without a complete understanding of the terms of the agreement she now fears her home might be at risk. Lenders of subprime loans sometimes use predatory tactics, such as huge balloon payments or complex terms and hidden penalties. Many Ward 4 residents may not have the financial flexibility to recover from such startling 11th hour revelations.
According to current reports 1 in 8 sub prime borrowers nationwide are behind in their payments. Meanwhile, dozens of sub prime lenders have gone out of business. One of the pressing issues affecting stable neighborhoods, such as those found in Ward 4, are sub prime lending and predatory lending schemes targeted primarily at those with the least financial assets. In testimony before the City Council earlier this year the Urban Institute revealed that residents of Wards 4, 7 and 8 show high levels of sub prime borrowing, potentially putting many dreams of homeownership at risk.
Security in home ownership is critical to creating and sustaining viable and communities.This is an issue that can be dealt with through legislation and action. I will fight to set standards for disclosure for sub prime lending, and introduce financial literacy into the educational curricula, to teach our young people the importance of protecting their assets and making careful financial decisions.
I will endorse:
1. Strengthened disclosure
requirements for subprime lenders.
2. Financial literacy education partnerships with schools, banks, lending
institutions and not for profit advocacy groups.
3. Encourage banks and lenders to invest in homeowners in Ward 4 on a
more equitable basis and with greater parity and transparency.
4. Strengthen penalties for lenders who abuse the trust of homeowners.
5. Requirement that lenders present options to potential borrowers.
6. Cooperation with public interest groups to support an outcomes based
database of lending information so borrowers can make informed choices.
7. Assistance from Federal agencies such as FHA and others to protect
the fabric of stable neighborhoods and and the interests of long time
homeowners.
Ultimately it will be economic development centered around modern transportation, amenities, education and enterprise that returns the community and its residents to prosperity. When that occurs, residents will no longer have the need to resort to risky borrowing practices to meet essential obligations.
To learn more about Edwards’ systematic approach, and to meet her in person click this link. And on MAY 1st Vote for Marlena Edwards for Ward 4 City Council.
Paid For By Marlena Edwards 2007
Calvin Lucas, Treasurer
