SENATOR SHAPLEIGH REQUESTS SPECIAL SESSION ON SUBPRIME LENDING AND TEXAS FORECLOSURES
October 17, 2007
"We believe certain counties in Texas are headed for record foreclosures and decreased property values unless strong actions is taken."
Written by Senator Eliot Shapleigh, www.shapleigh.org
EL PASO – Yesterday, October 16, Senator Shapleigh requested in a letter that Gov. Rick Perry call a special session on the Texas families expected to be impacted by a "tsunami of mortgage foreclosures," due to pervasive, high-risk predatory lending practices in the state.
"Since 2003, we have asked Perry, Dewhurst, Abbott, even Greenspan, to deal with significant subprime and predatory lending abuse in Texas, all to no avail," said Senator Shapleigh.
As reported in national news, including the New York Times and Wall Street Journal, our state and nation are experiencing a dramatic increase in foreclosures. Today, seven of the top 10 subprime cities are in Texas.
MSA Ranking by Overall Percentage of Subprime Refinance Loans
|
Rank |
MSA Name |
Population |
Conventional Refinance Loans |
Percent Subprime |
|
1 |
El Paso, TX |
679,622 |
1,767 |
47.82 |
|
2 |
Corpus Christi, TX |
380,783 |
1,061 |
46.84 |
|
3 |
Laredo, TX |
193,117 |
342 |
45.32 |
|
4 |
Killeen-Temple, TX |
312,952 |
683 |
44.80 |
|
5 |
Beaumont-Port Arthur, TX |
385,090 |
1,160 |
44.48 |
|
6 |
Miami, FL |
2,253,362 |
10,701 |
42.67 |
|
7 |
Columbus, GA-AL |
274,624 |
1,799 |
42.63 |
|
8 |
San Antonio, TX |
1,592,383 |
5,270 |
41.90 |
|
9 |
Memphis, TN-AR-MS |
1,135,614 |
7,577 |
41.86 |
|
10 |
Galveston-Texas City, TX |
250,158 |
944 |
41.63 |
|
|
|
|
|
|
Source: Texas Low Income Housing Information Services, using data from the May 2002 Risk or Race? Racial Disparities and the Subprime Refinance Market report by the Center for Community Change.
"We believe certain counties in Texas are headed for record foreclosures and decreased property values unless strong actions is taken," Senator Shapleigh added.
Senator Shapleigh asked Perry to call a special session to: (1) create a regulatory framework to encourage lender workouts; (2) fund relief for hard hit Texas families in the key counties; (3) enact laws to require counseling on high risk loans; and (4) evaluate the effect on state revenues and the budget.
"Again, I ask that you lead our great state to action and take immediate steps to help Texas prepare for and respond to the ongoing mortgage crisis," Senator Shapleigh concluded in his letter.
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(Click on the clipboard below for a copy fo the letter)