The number of high cost loans in NYC increased steadily from 2004 through 2006, with one in three loans being identified as high cost. This led to a dramatic increase in foreclosures- a situation the current economic crisis will only exacerbate. There were 15,000 foreclosures in New York City in 2007, a number up from just 5,000 in 2005. By the end of 2008, this number increased to 20,000, up a staggering 33%. Minorities are the hardest hit by this trend with households of color three times as likely to have subprime loans as white households and foreclosures projected to impact 8-10 percent of all black and Latino homeowners nationwide.
In the wake of this growing crisis, Restoration remains committed to helping residents of Bedford Stuyvesant maintain their assets.
As a leading partner on the Coalition for the Improvement of Bedford Stuyvesant's (CIBS) Asset Building network, Restoration collaborates on the Know the Facts campaign, designed to raise awareness of predatory lending practices and prevent foreclosures.
As manager of the Brooklyn Financial Empowerment Center, Restoration works with residents to help them preserve their assets and avoid unsafe financial practices.