The Center Responds: “Wall Street’s New Housing Bonanza”

Take a look at the Center’s comments below on a recent New York Times DealBook article. The Center will continue to work with our partners and elected officials to protect New York City homeowners and our neighborhoods.

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New York, NY – A recent article in the New York Times’s DealBook highlights a new plan to carve mortgage debt into slices and sell it on the market. Just five years after the mortgage crisis sent thousands of New Yorkers into foreclosure, the possibility of another financial crisis is in the making.

But what’s even worse is that this time, it’s not just a bursting credit bubble that we need to worry about. Families looking to purchase homes and invest in New York City may be pushed out of the housing market. Faced with stiff competition from investors, families looking to buy will instead add to the demand for affordable rental units. We know from our work at the Center that homeownership is an essential component of neighborhood stabilization. By pushing out homeowners, we are inhibiting the recovery of neighborhoods still reeling from the 2008 financial crisis.

The Center for NYC Neighborhoods urges elected officials at all levels to regulate this new industry and continue to invest in affordable homeownership opportunities in order to protect New Yorkers and their neighborhoods.