Delta Funding Corporation -- which became infamous through the '90s and beyond for tricking elderly, minority homeowners into mortgages they could not afford -- has been born again, this time as First Reliance Capital.
Delta declared bankruptcy a year ago and stopped making court-ordered payments to victims of its past abusive lending practices.
Zinner told BrooklynRon:
“It is unconscionable that the same principals who got rich through Delta Funding’s past fraudulent, abusive, and discriminatory lending practices should be allowed to reconstitute as an FHA lender after filing bankruptcy.”
Zinner worries that unless New York State and/or other regulators step in, First Reliance Capital may rekindle the practices and spirit of its predecessor company, the Long Island-based Delta Funding.
Zinner began his career as Director of the Foreclosure Prevention Project at South Brooklyn Legal Services (SBLS), the first of its kind in New York City to use litigation, outreach and education in a virtual war against predatory lending.
Zinner is now co-director of NEDAP, the Neighborhod Economic Development Advocacy Project.
Zinner says that Delta was, and First Reliance is now, led by Hugh Miller. The Miller family, though hit with legal actions by New York State and other states, denies that its practices were dishonest and predatory.
The author of this BrooklynRon site, in past years, interviewed many Brooklynites and Queens residents who were victims of Delta, having lost their homes after being tricked into loans they could not afford.
This site has previously called on local prosectors to treat predatory lending as a serious crime that inflects great harm on many New Yorkers, especially the elderly. (read by clicking here.)
Recently Channel 9 in New York did an excellent piece on the apparently resuscitated Delta and on Zinner's call for economic justice. (See it on the TV station's website.)