Press Release

CONTACT: Pauline Barfield, Barfield Public Relations, Inc.
212-736-0404
Email: pb736@aol.com
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BRIDGE STREET DEVELOPMENT CORPORATION, BEDFORD-STUYVESANT RESTORATION CORPORATION, NORTHEAST BROOKLYN HOUSING DEVELOPMENT CORPORATION, PRATT AREA COMMUNITY COUNCIL, AND THE BROWNSTONERS OF BEDFORD-STUYVESANT LAUNCH A STRATEGIC CAMPAIGN TO COMBAT PREDATORY LENDING IN BEDFORD-STUYVESANT ON JULY 20, 2006

City Councilman Albert Vann, Senator Velmanette Montgomery, State Assemblywoman Annette Robinson, Assemblyman William Boyland, Councilwoman Letitia James, Fred Arriga, counsel for the Brooklyn Borough President’s Office and Community Stakeholders Joined at a

Press Conference on Combating Predatory Lending

BROOKLYN, NY (July 20, 2006) -- Bridge Street Development Corporation, Bedford-Stuyvesant Restoration Corporation, Northeast Brooklyn Housing Development Corporation, Pratt Area Community Council and The Brownstoners of Bedford-Stuyvesant announced an education campaign that alerts Bedford-Stuyvesant homeowners and residents of the dangers of predatory lending at a press conference on Thursday, July 20, 2006 at Restoration Plaza 1368 Fulton Street, Brooklyn.

City Councilman Albert Vann, Senator Velmanette Montgomery, State Assemblywoman Annette Robinson, Assemblyman William Boyland, Councilwoman Letitia James, Fred Arriga, Counsel from the Brooklyn Borough President’s Office, and other community officials joined these organizations at the unveiling of the anti-predatory lending campaign.

The practice of predatory lending aimed at Bedford-Stuyvesant homeowners has risen to crisis levels. In 2005, a Federal Reserve Bank study revealed that in 2004, regardless of income levels, African-Americans were about three times as likely as whites to obtain mortgages with excessively high rates. The booming housing market in New York City, combined with the allure of the stylized brownstones populating Bedford-Stuyvesant, has increased the value of homes in the community. Historically underserved by traditional banks, Bedford-Stuyvesant and other communities have been targeted by predatory lenders. In the last few years, many of the affected homeowners have been either seniors who are rich in equity but have fixed or little income or first time homebuyers eager to realize their dreams of owning their homes. All of these factors have made the community a prime target for lenders who have exploited homeowners through abusive loan practices, including excessively high mortgages which lead to foreclosure.

Bridge Street Development Corporation and the participating groups have collaborated and designed a campaign to educate Bedford-Stuyvesant residents on the dangers of predatory lending. Our goal is to be a resource to which the community can turn to get the information and facts they need to be better prepared homeowners as well as avoid being victims of predatory lending practices. These groups were chosen by Councilman Albert Vann who stated, “I am greatly encouraged by the collaboration of our premier community based organizations. Their collective ability to engage and inform the residents of our community will certainly reduce the number of neighbors who become duped by predatory lenders.”

Bridge Street Development Corporation President and Chief Executive Officer, Rhonda A. Lewis stated, “This campaign is vital to the Bedford-Stuyvesant community, and a call to action to alert residents that there is a crisis in Bedford-Stuyvesant known as predatory lending.”

The anti-predatory lending advertising campaign is under the direction of Bridge Street Development Corporation, and is funded through Councilman Albert Vann. The advertising campaign will feature a major education outreach through posters inside city buses (B25 and B26 lines) and on display in public areas, local newspaper ads, radio commercials, palm-card hand-outs and door knob hangers. The participating groups will invite the community organizations, block associations and civic groups to display the promotional pieces in their neighborhoods in Bedford-Stuyvesant. The five groups involved in the campaign are pleased to be able to provide the tools to help this community preserve their assets and be better prepared to protect themselves against predatory lending.

For further information, please contact Pauline Barfield at 212-736-0404.