Industry News

Civil rights groups call for moratorium on foreclosures

Minorities hit disproportionately by subprime lending crisis

Civil rights groups Wednesday called for a six-month moratorium on foreclosures on homes purchased using "reckless and unaffordable" subprime loans, saying a disproportionate share of the harm done by those loans is falling on African-American and Latino homeowners and their neighborhoods. At a Washington, D.C., press conference, the groups -- including the Leadership Conference on Civil Rights, the NAACP, the National Fair Housing Alliance, and the National Council of La Raza -- urged Congress to pass anti-predatory legislation, including a "private right of action," that would give aggrieved borrowers more leeway to sue lenders for damages. "If lenders, servicers, Wall Street and policymakers allow the flood of subprime foreclosures to continue rising unchecked, years of economic progress in communities of color will be wiped out, and the racial wealth and equity gap will widen even further," said the NAACP's Hilary O. Shelton in a statement. "Without intervention, subprime foreclosu...