Basile Builders Group Sponsors Seminar on Brooklyn Subprime Market

With all the latest information on the subprime market, the saddest news is how much it has affected the minority neighborhoods all over the U.S. They have been heavily targeted for risky high cost loans. That's why my family's company Basile Builder's Group, is joining a group of other specialists including Legacy Financial, the law offices of Daniel Boldi, Esq., L.I. Business Consultants, Amenity Appraisals and Ameraprise Financial to hold a free seminar on February 19 at The Knights of Columbus, Brooklyn , New York.

Why? Our community needs advice and guidance. With millions of Americans suffering from rising mortgage payments due to adjustable rates, balloon payments and other unscrupulous sub-prime programs, many folks have started to really panic as they hear about or know other family members and friends who are losing their homes. It's our goal to help answer questions.

Minorities are at the center of the subprime mortgage crisis, according to a study that was put out by United for a Fair Economy, a Boston-based economic policy group. The “State of the Dream 2008: Foreclosed” report evaluated subprime lending during the past eight years and projects a direct loss from defaulted subprime loans to range between $365 billion and $605 billion.

It's estimated that whites hold 55 percent of the bad subprime loans, while minorities hold the other 45 percent. African-American borrowers are projected to lose between $71 billion and $122 billion — about 20 percent of the total projected losses, while Latinos will lose $76 billion to $129 billion for the same period, about 21 percent of the subprime default burden.

It's pretty bad here in New York in places like Brooklyn. According to this January 26th Bloomberg subprime article, the communities of Bedford-Stuyvesant and Crown Heights had a foreclosure rate of almost four times the national subprime figure of 6.89 percent, which was the highest since March 2003.

These sharp increases in subprime mortgage loan delinquencies and in the number of homes entering foreclosure do raise important economic, social, and regulatory issues.

For more information on the Feb. 19th free seminar, contact Jonathan at 516-404-5855.