NYS Banking Dept.To Launch Campaign Targeting Abusive Practices

The New York State Banking Department is launching a "Campaign to Halt Abusive Lending Transactions and Mortgage Fraud" this week in Manhattan whereby the state Banking Department will bring together the banking industry with state and nonprofit groups in an effort to solve the problem, according to the Albany Times-Union. One item expected on the agenda is the enforcement of the New York Home Equity Theft Prevention Act, which the state passed last year and went into effect this past February 1 with the view to eliminate illegal foreclosure rescue scams that take unfair and illegal advantage of New York homeowners facing foreclosure without targeting ethical investors. According to Steve Kirchgraber, deputy superintendent of the consumer services division with the state Banking Department:

• "The legitimate investors who aren't looking to scam people will play by the rules ... This is designed to make the market unappealing to those who would run a scam, because now there are penalties, including jail time."

Similar conferences are expected later this year in Albany, Buffalo and, possibly, Watertown. For more, see State targets abusive lending (Schumer pushes subprime rules, says 6,000 in Capital Region could lose homes).

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