With the United States economy officially in a recession, 10 banks will issue more than 4,600 notices of foreclosure to New York families despite receiving more than $122 billion in the taxpayer funded bailout.

Senator Craig M. Johnson (D-Nassau) and Deputy Senate Democratic Leader Jeff Klein earlier this month released the top 10 banks responsible for the most foreclosure filings on Long Island this holiday season. They also proposed to standardize Operation Protect Your Home, a foreclosure prevention forum, to help stem the rising tide of foreclosures in the state by requiring lenders to meet with borrowers and work out mutually beneficial ways to avoid foreclosure.

The report, which was released in front of a foreclosed property on Brush Hollow Road in Westbury and authored by Senator Klein's office, examined foreclosure trends in the New York metropolitan area and found that the top 10 banks responsible for the most foreclosures on Long Island, are: US Bank, Deutsche Bank, Wells Fargo, JP Morgan Chase, HSBC, Bank of America, The Bank of New York, Citigroup, Indymac and Capitol One. According to the report, Nassau County has the dubious distinction of having the second-highest rate of foreclosure filings, 1,033, in October and November. Suffolk County has the third-highest rate with 762.

"These foreclosures and the predatory loans that spawned them are the spark that set off this financial crisis," Senator Johnson said. "It is simply unacceptable that many of these banks have by and large been disinclined to help families stay in their homes - especially during the holidays - yet are lining up for a taxpayer-funded bailout."

In September, Congress passed a $700 billion bailout package that relieved major mortgage banks of the growing burden caused by the dissolution of the credit market. However, average Americans remain dogged by financial failure and pending foreclosure. Despite the federal government's rhetoric toward home retention, little has actually been done to incentivize banks to modify mortgages and keep people in their homes. The banks listed in the report, or Subprime Scrooges, have received billions in taxpayer monies, yet continue to file foreclosure proceedings rather than use programs like the federally funded Hope for Homeowners, to help distressed borrowers.

"This is socialism for the banks and capitalism for everyone else," Senator Klein said. "We need to fundamentally refocus the banks on loan modification and make the state a stakeholder so as to wield homeownership as a responsible investment rather than a financial scalpel."

"I find it outrageous that banks, especially those getting taxpayer subsidies, would foreclose homes during the holiday season," said Senator-Elect Brian X. Foley, (D-Suffolk.) "These corporations come looking for public assistance when it fits their needs but they're unwilling to give our struggling families a break during these tough economic times."

In 2008, the New York State Senate worked with the New York State Banking Department and over 15 lending institutions to create Operation Protect Your Home. From the Bronx to Buffalo, distressed homeowners from all over the state attended one-on-one modification meetings with their lenders in seven counties. More than 3,500 at-risk mortgages were discussed for modification under this program.

Governor David Paterson's 2008 subprime lending law made formal settlement conferences between lenders and borrowers mandatory within 60 days of a foreclosure filing on any subprime or non-traditional mortgage. The senators, however, announced that new legislation will be introduced in January to extend this protection to all residential mortgage borrowers. Lenders will also be offered the option of satisfying this obligation by participating in a series of state-sponsored Operation Protect Your Home events throughout the state for lenders serving large numbers of New York properties; Operation Protect Your Home is likely to be the most efficient way to connect directly with their borrowers. It will also keep more New Yorkers in their homes by facilitating direct contact before at-risk mortgages reach the foreclosure stage.

In addition, they proposed that State of New York Mortgage Agency (SONYMA) start refinancing troubled borrowers into 30-year fixed rate mortgages. Currently, SONYMA offers financing only to first-time homeowners. Under Klein's proposal, the home would be appraised at the time of the SONYMA refinancing and the mortgage would be up to 90 percent of the value of the mortgage. By empowering the agency to help any and all homeowners, the state would have a share in the equity of the home, and upon sale or refinancing it would benefit from the home's appreciated value.

All lenders would be required to work with SONYMA to determine if the homeowner qualifies for this refinancing option.

Lastly, the senators renewed their push for the Legislature to pass the Senator Klein-sponsored Neighborhood Preservation Act (S.7028) This legislation would allow a municipality to enforce safety and habitability requirements for every bank-owned property. Studies have shown that neighborhoods surrounding a foreclosed property are subjected to increased crime and devaluation of surrounding properties.