New York, N.Y. - December 10, 2007 - At a Wall Street rally addressing the subprime mortgage crisis, National Urban League President and CEO Marc H. Morial Monday called for increased assistance for homeowners in foreclosure as a result of adjustable-rate, high-interest and high-cost subprime mortgage loans.

"The subprime mortgage meltdown has touched millions of Americans so far - from Wall Street hedge fund employees to U.S. investors to last but not least homebuyers, a disproportionate number of them blacks and Hispanics," Morial said. "We must put a stop to this crisis before it causes major disruptions in our credit markets and economy and devastates urban communities, where subprime lending has helped millions of hard-working Americans own their own homes for the very first time and has pushed homeownership rates among minorities to historic levels."

The NUL president described the Bush administration's plan to freeze interest rates of some adjustable-rate mortgage loans combined with compromise mortgage reform legislation that recently passed the U.S. House of Representative but not without losing a few teeth along the way as "promising first steps but still not enough to resolve the worsening crisis," which has resulted in an estimated 1.7 million foreclosures and another 2 million expected in the coming years.

"It is not the availability of subprime mortgages that has brought about this meltdown. It is the way these loans have been used by fly-by-night brokers to exploit and taint the dream of homeownership for countless urban residents," he added.

The league Monday also unveiled an updated version of its Homebuyer's Bill of Rights that includes one new right - The Right to Fair Treatment in Case of Default -- in addition to the six original ones, among other changes.

Moves by many lenders, as well as big mortgage gatekeepers such as Freddie Mac, to amend their approach to dealing with delinquencies have given some hope to countless homeowners behind on their mortgages and those teetering on the brink of default. They have realized that it is more cost-effective to help borrowers stay in their homes than pursue foreclosure and deal with the hassle of owning, managing and then selling the resulting real estate.

Consequently, there are myriad scenarios that can play out as a mortgage delinquency progresses. In the case of default, the league believes that three key provisions must be afforded to homebuyers: 1) the opportunity for loan restructuring that includes the conversion to fixed rate loans for those determined to be onerous; 2) fair and unbiased counseling; and 3) accessibility to reasonable workout plans that promote preservation to the greatest extent possible and resort to foreclosure when all other options are exhausted.

"Nationwide, Americans have lost jobs, become temporarily disabled, incurred unexpected medical expenses or have been forced to choose between paying the mortgage and repairing the car that transports them to the job that pays the mortgage. It is a vicious cycle exacerbated by inconsistent state laws regarding mortgage default and foreclosure and inconsistent policies of mortgage lenders and servicing companies in the way they approach delinquent borrowers," Morial observed.

"All homeowners deserve to be treated fairly when facing foreclosure - not left powerless to watch their homeownership dreams wither and die," he added. "We urge lenders to restructure loans not repossess homes."

The remaining six rights of the Homebuyer's Bill of Rights include: The Right to Save for Homeownership Tax-Free; The Right to High-Quality Homeownership Education; The Right to Truth and Transparency in Credit Reporting; The Right to Affordable Housing for Working Families; The Right to Fairness in Lending; and The Right to Aggressive Enforcement of Fair Housing Laws.

For more information and a complete copy of the Homebuyer's Bill of Rights with further explanation, contact Adrien Seybert at 212-558-5315 or visit www.nul.org

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