NY announces plans to address rising foreclosures

NEW YORK, Nov 8 (Reuters) New York state officials on Thursday announced plans to address the rising rate of home foreclosures and to reduce risks of future lending in the area of risky subprime mortgages.

New York Governor Eliot Spitzer and state Attorney General Andrew Cuomo said at a news conference that the new initiatives would include a matching grant program to provide financial support for counseling groups and others that are assisting homeowners facing delinquency or foreclosure.

Cuomo's office is in the midst of an expanding probe of the trillion U.S. home mortgage industry. He announced on Wednesday that he was planning to subpoena records of mortgage finance companies Fannie Mae and Freddie Mac related to mortgage loans that they purchased from banks, including Washington Mutual Inc.

REUTERS BJR DB203