The village of Freeport, Long Island, became the second municipal government in New York to close its accounts with JP Morgan Chase Bank to protest what it says are the financial institution's discriminatory loan modification practices towards African-American and Latino homeowners.

Andrew Hardwick, the mayor of Freeport, announced the city's decision at a press conference that took place on Thursday, June 2nd, outside City Hall. Representatives from NY Communities for Change, Long Island Jobs With Justice, and the mayor's office of the village of Hempstead also attended. In April, Hempstead was the first municipal government to close its accounts with Chase for the same reason.

"Chase has a responsibility to serve our community and it's about time they set things right," Mayor Hardwick said during his speech, referring to 200 families in Freeport that are facing foreclosure and have not been able to obtain a mortgage adjustment.

Based on a report by NY Communities for Change, local elected officials and activist organizations say that Chase is not modifying home loans for African-American and Hispanic families, and letting them lose their homes to foreclosure.

Michael Fusco, a spokesperson for Chase, said that the bank has had a financial relationship with the village of Freeport for more than 40 years and employs more than 80 local residents. According to a press release, Chase also serves more than half of the families in the community and 1,500 small businesses through its two branches in Freeport.

"We are doing all we can to help homeowners prevent foreclosure, in New York and throughout the country," Fusco said in a written statement.

Freeport closed its accounts with Chase, even after a morning meeting on June 2nd with representatives from the bank, said Hardwick. He did not mention how much money the city decided to withdraw. But Freeport trustee and former deputy mayor Carmen Piñeyro, who led the initiative to close the city's accounts, said that the city managed "several million dollars."

Freeport had recently borrowed more than $5 million from Chase, said a Chase spokesperson, and the city still has this account open. The village is looking to transfer its funds to one of five other financial institutions.

The village of Hempstead was the first municipal government in all of New York to take a stand against Chase, withdrawing more than $12.5 million, because Chase did not resolve the problem of modifying the loans of the city's minority residents, said Wayne J. Hall, Hempstead's mayor.

During the press conference in Freeport, a resident and homeowner in Hempstead, Maribel Toure, spoke of trying to adjust her mortgage with Chase: "After trying to get a modification for years, they only gave in when the mayor intervened and closed the city's bank accounts," she said.

"But my case is not the only one," she added. "This isn't just about me. When Chase helps the entire community, then we will be able to say that Chase is on the people's side. Until then, I encourage others to approach the leaders of Freeport and Hempstead, and to do the same," said Ms. Toure.

The closing of Chase bank accounts is part of campaign run by NY Communities for Change. The goal is to close bank accounts in cities where there are a high number of homeowners that are unable to obtain a mortgage adjustment with Chase, whose headquarters are in Manhattan.

A report by New York Communities, published this past January, said that Chase had only granted mortgage adjustments to six percent of borrowers in New York. New York Communities wants Chase to halt foreclosures, alter its loan modification process, and pay money to homeowners who lost their properties because they were denied modifications.

According to a press release from New York Communities for Change, there is hope that at least four other local governments in New York will decide to close their accounts with Chase. New York City labor unions including the Transport Workers Union and the United Federation of Teachers have threatened to shut down their accounts, while 25 members of the Albany county legislature have signed a petition to end the county's relationship with the bank.