Long before Wall Street's collapse, southeast Queens homeowners were already feeling the effects of the mortgage crisis. According to the nonprofit Neighborhood Economic Development Advocacy Project, more than 1,600 Queens homeowners are facing foreclosure in 2008. It is a staggering number that will grow unless action is taken.
More than anywhere else in the city, southeast Queens was targeted by predatory lenders who encouraged people to take out subprime mortgages either on new homes or as a refinancing. They knew or should have known that these people could not afford the mortgages.
When the adjustable rates kicked in, these families would default and their homes would go into foreclosure. Brokers made their money up front in the closing costs and the banks wound up with bad loans.
These foreclosures are not just a crisis for these families. They represent a crisis that could destabilize neighborhoods and threaten Queens' quality of life. For this reason, Congress must act quickly to protect not only Wall Street, but Jamaica Avenue.
There will be time for name-calling and assigning blame. Now is the time for bipartisanship. Since thousands of Queens residents work in the financial sector, we have no problem with “bailing out” Wall Street. Despite conservatives' theatrics, Wall Street is critical to America's economic well-being.
But just as important is the desire of working men and women to keep the homes that house their families. Congress must stem the tide of foreclosures. Last week, several Queens congressional members, all Democrats, held a press conference to denounce the Republicans for not voting for the bailout plan.
“They put ideology first and the taxpayer last,” said U.S. Rep. Gary Ackerman. It appears Ackerman learned nothing from the blunder of House Speaker Nancy Pelosi, who attacked the Bush administration in a partisan speech moments before the House bill went down in flames.
There are dedicated people on both sides of the aisle. For the benefit of the homeowners fighting to keep their homes and the taxpayers fighting to keep their Wall Street jobs, we urge Ackerman et al. to can the rhetoric and get something accomplished.
