Vallone, Commerce Bank Hold Mortgage Seminar
City Councilmember Peter Vallone Jr. explains how to avoid subprime mortgage pitfalls during a seminar at Commerce Bank in Astoria.

In the wake of the mortgage crisis, City Councilmember Peter F. Vallone Jr. held a seminar, hosted by Commerce Bank, alerting local residents about the dangers of subprime loans and discussing responsible debt management. A roomful of residents heard banking experts speak about different loan options, and Vallone gave helpful legal advice about mortgages.

"This crisis has hit every corner of the city, and we are doing our part to help inform residents how to avoid and deal with bad debt," Vallone said. "Knowledge is power, and we must use it to fight unscrupulous lenders looking to take advantage of homeowners, as well as fighting fraud that occurs in a large percentage of loans."

The seminar focused on the good and bad loans that are available to borrowers. Representatives from Commerce told residents to avoid adjustable rate and subprime loans, instead encouraging them to seek fixed rate mortgages. A former real estate attorney, Vallone also told the audience that they should always have a lawyer review the loan documents before they sign.

"If anyone tries to sell you an adjustable rate mortgage on a home that wasn't for construction or sale, you have them call me and I will have a little talk with them," Vallone said.

Last year there were 14,000 foreclosures in New York City. The City Council responded by giving $5.5 million to help fund the Center for New York City Neighborhoods, an organization that is working to help communities grapple with the mortgage crisis. There are also several resolutions supporting state legislation to halt foreclosures and help residents deal with their debt.