NEW YORK STATE -- The sub-prime crisis affects millions of people who bought homes they couldn't afford, through tricky interest-only loans, variable interest rates and loans given out by predatory lenders.
The State Senate Democratic Conference is demanding passage of emergency legislation to help out people who could lose their homes. Many say the home buyer is ultimately to blame for not reading the fine print and not being realistic about how much house they could afford.
Governor Patterson says he doesn't buy that argument.
"I’ve heard some argument, fortunately not in the halls of this legislature, why are we helping these people that made bad decisions and I guess the counter argument to it is, we helped Bear Stearns, who made bad decisions," Paterson said.
The sub-prime crisis affects millions of people who bought homes they couldn't afford, through tricky interest-only loans, variable interest rates and loans given out by predatory lenders.
The Governor also pointed out that $25 million of the state budget has been set aside for counseling people caught up in the crisis and wants to make sure all lenders are licensed by the state banking system.
The proposed legislation calls for immediate assistance to homeowners facing foreclosure, as well as tougher laws to protect consumers from questionable mortgage lending practices.