Frustrated homeowners fighting foreclosure stood at the gates of the Federal Reserve Bank of Richmond?s Baltimore office Thursday, seeking more help from the federal government to save their homes.
Warning the foreclosure crisis has broadened ? a claim bolstered by a 150 percent jump in homes entering foreclosure in Maryland in April ? several dozen protesters led by community activist group ACORN demanded the bank?s policy-makers crack down on questionable lending practices.
“I served my country in Iraq for 14 months, and now I can?t get any help,” yelled retired Army Sgt. Monique Kelly, who is at risk of losing her Owings Mills town house.
The former personnel specialist said she was forced to pay $7,000 to fix a rotted floor hidden underneath carpeting that home inspectors missed. Now the 10-year Army veteran has fallen behind on her $1,600 monthly mortgage payment and is facing foreclosure.
“I deserve help; that?s all I?m asking for.”
Donna Hanke, 55, has watched the mortgage payment on her east Baltimore home skyrocket, after her adjustable-rate mortgage reset in January ? raising her payments from $1,662 per month to $2,200. Unable to keep up, Hanke lost her home to the bank.
“I?ve been making the same salary for 15 years; I just didn?t have it.”
Foreclosure rates have continued to climb in Maryland, with 13,000 homes currently in arrears and facing foreclosure.
ACORN organizer Stewart Katzenberg said stricter regulation is the key to preventing foreclosures.
“The Federal Reserve Bank has the power to regulate mortgage lending; we?re asking they do more.”
But despite a new package of laws for local lenders passed in Annapolis this year, Katzenberg said it was still difficult to negotiate more affordable mortgage rates for troubled homebuyers.
“They?re trying to squeeze blood out of turnips,” he said of lenders.
“They don?t realize these turnips are actually people.”
A representative of the Federal Reserve who declined to be identified told protesters that Angelique Campbell, spokeswoman for the Federal Reserve Bank, would arrange a meeting between ACORN and bank officials soon.
“We were promised sometime next week,” Katzenberg said.
