ACORN Convinces Largest NY Village to Leave Chase Bank – Part of Bring Down Big Banks Plan

Posted on April 10, 2011

As part  of their “Destroy Chase” campaign,  ACORN has convinced the Largest NY Village, Hempstead, to withdraw its funds from JP Morgan Chase due to their predatory loan practices.  Acorn announced their campaign which was dubbed “mortgage terrorism” at the Lonely Conservative.  Hempstead is a minority-run municipality and they are leading the state-wide movement to begin to bring down the big national banks such as Chase and Bank of America. [Democratic Underground]

Nearly one in every four U.S. homeowners with mortgages — or 10.8 million people — currently owe more on their home than it’s worth. In Hempstead, almost 4 percent of homes are in the foreclosure process, according to Dealbook, a rate four times Nassau County average. While data on Chase loans in Hempstead are hard to come by, in nearby New York City, only six percent of the 1,027 borrowers with Chase mortgages who asked for help in the past year were granted a permanent modification, according to a report released recently by the Center for New York City Neighborhoods. Moreover, a full 80 percent of these homeowners have not even received an offer for a loan modification.Chase’s national modification record is not much better. Of 233,653 trial modifications started by Chase under the Obama administration’s Home Affordable Modification Program (HAMP) launched in 2009, the bank now has just 71,657 active permanent modifications, according to the latest data from the Treasury Department. [Huffington Post]

Clients of these banks are mindful of the fact that their taxpayer funds went to bail them out.

The Village of Hempstead is the first municipality in the country to close a bank account due to foreclosure policies. But a spokesperson for NY Communities for Change said many local governments throughout the state are planning to close their Chase accounts in the coming months. New York City Councilman Jumaane Williams marched into a Park Avenue Chase bank in February to close his account, and major unions have also announced their intention to pull their pension-fund money out of JP Morgan Chase.  [Huffington Post]

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