Melvin and Katie Scott and their 12- year-old son, Alexander, spent Wednesday in front of the Denver branch of the Federal Reserve Bank. If the Scott family cannot raise nearly $6,000 soon, their Green Valley Ranch home will go on sale June 19.
The Scotts and about 12 other demonstrators – in a rally organized by the Association of Community Organizations for Reform Now, also known as ACORN – demanded the Federal Reserve crack down on high-rate mortgages.
ACORN groups across the country gathered in front of Federal Reserve Bank branches with a list of demands, including the elimination of prepayment penalties in subprime loans and a one- year moratorium on foreclosures so borrowers late on their mortgages could set up payment plans.
“We’re letting (politicians) know that this foreclosure thing is getting ridiculous. It’s the mortgages; they’re rip-offs. They’re predatorial,” Melvin Scott said.
The Federal Reserve Board will hold a public hearing on abusive lending in Washington, D.C., on June 14.
Colorado led the nation in rate of foreclosures for much of last year, and the state is on pace to record more than 37,000 foreclosures by year-end, an increase of about 30 percent from 2006.
Gov. Bill Ritter has endorsed five bills to address the problem; the bills are not expected to help those already in foreclosure but should prevent future foreclosures with tighter regulations on mortgage brokers.
The Denver demonstrators never entered the building to express their demands but sent the office a press release about the protest. A Federal Reserve representative said the branch was willing to invite the demonstrators in to discuss ACORN’s concerns, but the protesters never requested a meeting.
Facing a sale date only 12 days away, Melvin Scott believes he will be able to raise enough money and reach a payment plan with his bank so he can keep his home of more than 10 years. The Scotts said they refinanced two years ago to pay bills and that an adjustable-rate mortgage was the only loan the bank offered.
The Scotts remain hopeful, but they know eviction is a possibility.
“That would be so devastating. I can’t even describe anything like that,” said Katie Scott, who has no plans if the family loses its home. “That’s a good question. That’s the name of the game. Where are we going to go? Where are we going to go?”
Staff writer Zach Fox can be reached at 303-954-1755 or zfox@denverpost.com.
