Foreclosure Moratorium Bill Set for New York; LPAC Leads Nation Around HBPA

8 de enero de 2008

January 8, 2008 (LPAC)--A bill in the FDR-era model, to stop foreclosures, is set for filing soon in the New York General Assembly, by Brooklyn Assemblyman James Brennan (D) and in the state Senate, by Sen. Frank Padavan (R), Queens. The bill would impose a one-year delay in any foreclosure, after the lender gained entitlement against the homeowner.

This is one of many New Year initiatives on the state and local level, to try to deal with the financial breakdown crisis, given the inaction by Congress to date. The LaRouche Political Action Committee is intensifying its deployment cross country, to create the pressure to force Federal action, for a "Home Owners and Bank Protection Act" (HBPA).

The Brennan bill, according to the Brooklyn Daily Eagle (Dec. 28), is in the tradition of a New York state law enacted during the 1930s Depression, which then expired in 1949. "This bill would require that the court provide for a minimum payment by a homeowner that would be fair and equitable and would not alter the relative financial position of the parties", says Brennan. He estimates that 100,000 homes will be subject to foreclosure in New York in the next two years. Locally, in Bedford-Stuyvesant, foreclosures are occurring at a rate of 51 percent of all subprime mortgages.

In June, 2007, a bill was filed in the N.Y. Assembly, that would have granted a moratorium on all subprime mortgage foreclosures, for a specified time period. Many co-sponsored it. Now, the more far-reaching Brennan/Padavan bill can expect even wider support.

  • East. LPAC teams are mobilizing support for HBPA-resolutions in New York and other Eastern states, including in Massachusetts, where the LaRouche Youth Movement (LYM) is at the Boston state house this week. LYM teams are in New Hampshire over the primary period.
    • In Pennsylvania, 21 cities and towns have already passed resolutions of support for the state bill (H.R. 418) calling for a Federal HBPA. These 21 local governments, including Pittsburgh, Philadelphia, Erie and Harrisburg, the capital, represent 2.5 million people out of the state's 11 million population. Dozens more resolutions of support are expected over the coming week, before the Jan. 14 re-convening of the legislature.
    • In Richmond, Virginia, an LPAC/LYM team will be on hand this week, for the opening days of the legislature.
  • Mid-West. The latest backing of the HBPA came Jan. 7 in Ohio, with unanimous passage of a resolution by the City Council of East Cleveland. 
    • In Missouri, a LYM team is on hand for the opening of the state legislature, where state Rep. Juanita Walton (D-St. Louis) intends to introduce a resolution backing the HBPA. Walton announced this months ago, to rally other legislators  to action.
  • West. In Texas, LYM teams have been touring the state, where no regular legislative session is scheduled for 2008, but crisis-action is called for. From the Rio Grande Valley, to Dallas, to Austin, LYM organizers have sought out lawmakers and local activists on their home turf. 
    • In California, the LYM is in Sacramento, directly confronting the Governator Schwarzenegger operation, orchestrated by George Shultz and Warren Buffett, which is demanding "bi-partisan" fascist austerity in the state.  
    • In San Bernardino last night, the City Council heard testimony from four LYM organizers, on the urgency for HBPA-acton.

Nationally, the AFL-CIO has issued a call for a moratorium on foreclosures on homes caught in sub-prime mortgages. On Dec. 6, AFL-CIO Associates General Counsel Damon Silvers outlined their plan at a Congressional hearing. The points include restructuring mortgages for 30 years, and keeping people in their homes.