Recently homeowners in my corner of Harlem held a soiree in someone’s garden. We form a warm group of 130 people who represent the changing neighborhood — black old-timers with a growing number of whites. Everyone brought a dish or bottle and the talk over the macaroni was cheerful. Did anyone know a good contractor? How did the Little League do this summer? A door prize, a box of Godiva chocolates, was awarded to the longest resident — Dina Morrison, 93, who has lived with her older sister in the same place for 67 years.  No one mentioned foreclosures.

Foreclosure crisis? What crisis? Not in Harlem.

Harlem is full of the sort of people who are losing their properties all over New York City, namely little old ladies and working-class African-American families. But the nation’s black capital has been insulated from the sub-prime meltdown by the very thing usually blamed for destroying communities of color — gentrification.

While the dreaded G word has priced some residents out of the ‘hood, we’ve seen a paradoxical upside. The house values that have skyrocketed over the past 15 years in Harlem scared off many predatory lenders who targeted other black areas. These $1-million-plus price tags have also given homeowners who are struggling to keep apace with mortgage payments the option of selling out before the bank closes in.

“There tends to be a tight connection between property values and foreclosures,” explains Josiah Madar, from the Furman Center for Real Estate and Urban Policy at New York University.

He and other experts understand little about the mechanisms of abusive lending, other than the stark racial component.  Eight of the ten top neighborhoods hit by foreclosures in the city are overwhelmingly non-white. A map representing the worst afflicted areas — among them Bedford-Stuyvesant, East New York, North Bronx, South Jamaica — says it all. Each filing is a dot, and the aforementioned areas resemble solid metastasizing cancers, with several hundred foreclosures each.

Yet the area comprising Hamilton Heights, which claims some of Harlem’s most prized Victorian brownstones, had just eight foreclosure notices, so few one can discern the individual specks.

It appears that the conmen who besieged other black neighborhoods steered away from Harlem, wagering that anyone who lived in a valuable townhouse would be too financially sophisticated for their tricks. Unlike in the outer boroughs where the racial demographic is similar but house values lower, Harlem residents didn’t report a barrage of flyers pushed through mail slots that promised zero interest rates. The scam artists who solicited people to over-borrow just didn’t approach Harlem as aggressively. Take a look at the numbers. Only 0.8 percent of all home-purchases mortgages in the Hamilton Heights area in 2006 were sub-prime, versus 34 percent in Bedford-Stuyvesant and 39 percent in East New York. (EDITORS — These are the latest available figures.) Refinancing loans from risky lenders were likewise lower here.

“It was all a matter of the assumptions of the predators,” said Dwayne Jones, lending director of the Parodneck Foundation, a housing advocacy group. “They did not come to Harlem.” He credits the large concentration of organizations like his, as well as social networks like our homeowners’ association, for raising awareness among less savvy member of the community.

Those Harlemites who did borrow more than they actually owned could take the money and run. That’s what our next-door neighbor did. Literally a week before the bank jumped to possess her 1888 row house, she sold the property for a nice packet to a white family and found something cheaper. Granted, it’s disruptive to move but she was spared financial ruin.

The added positive effect is that properties like hers do not sit vacant during New York’s long foreclosure process. We see a vicious cycle in foreclosure-hit areas, where empty houses sink the cost of those nearby. As anyone who lived through Harlem’s dark ghetto days knows, no one wants to live next to a boarded up building that tempts drug dealers to loiter. Moreover, few people want to buy a boarded up building with a leaking roof, which is often the case as banks rarely maintain the properties they seize.

This is not to say that gentrification is great for everyone. Of course it has a bad side. Most Harlemites rent apartments and do not dwell in fancy mansions. The locale is losing its status as the last outpost of affordability in Manhattan. Those suffering are victims not of the white professionals who buy shells and fix them up. No, the destructive forces are the big developers who scoop up rent-stabilized apartment buildings and then try to force out tenants by doing improvements and jacking up the price. Some of these investors borrowed more than the value of their properties, and now risk default. Then what happens to the residents living on the premises?

For the time being, though, homeowners like Dina Morrison are in a good place. There’s talk among the homeowners of a jolly Christmas party, just like every year of plenty.

©2008 Judith Matloff

About the Author:

Judith Matloff is the author of Home Girl — Building a Dream House on a Lawless Block (Random House.)

Article Source: ArticlesBase.com – How Gentrification Saved Harlem

Remarks on predatory lending

Predatory Lending Housing Crisis is a post from: Upside Down Mortgage

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Question: where do you go to file a lawsuit without a lawyer?

i want to know how do i file a lawsuit without a lawyer? for predatory lending practices an harressment an diress

Answer: You can go to your local county court house and tell them you wish to file a civil suit; a legal aid will give you the proper paperwork and send you in the right direction. With this type of civil suit you'll most likely want an attorney to do it for you, they'll have a better chance at getting a judgement in your favor; the lending companies lawyers will rip you apart.

Joplin, Missouri Predatory Lending Lawyers - The Hershewe Law Firm

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Question: Does anyone else find this curious?

Here is a link to an article from the NY Times… dated September 30,1999.

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1

Bill Clinton was still President.

Please note who is “applying pressure” in the third paragraph.

But that isn’t the best part…

Take a look at the eighth paragraph. Here we have Peter Wallison already talking about how a bailout will be necessary when the subprime market inevitably collapses.

I know the Bush administration proposed legislation to fix the predatory lending situation, but was stopped by the Dems in Congress. Although I admit I don’t have all the details on that particular issue.

Thoughts? Does anyone have any more information on this?
Artguurl: What about the talk of the bailout in 1999? That is the part I’m more interested in.

Answer: The Bush administration never proposed legislation to fix the predatory lending situation. He never did anything to stop it. He supported it by helping deregulation the business even more. You're right, you don't have the details on that particular issue. You don't even have the facts.

February 23, 2004: Instead of heeding warnings, Federal Reserve leadership promotes non-traditional mortgages over fixed rate products in a speech to the Credit Union National Association annual conference. "American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.the traditional fixed-rate mortgage may be an expensive method of financing a home." [Remarks By Federal Reserve Chairman Alan Greenspan, 2/23/04]

October 8, 2003: Bush administration objected to a proposal to have an independent regulator of Fannie Mae and Freddie Mac be an independent unit of Treasury, much like financial regulators housed in the agency that oversee banks and thrifts. The Bush administration also objected to a proposal to have the Department of Housing and Urban Development have oversight over the companies' business activities. The independence provision has broad support from committee Democrats and Republicans. The HUD provision was pushed mostly by Democrats but had been accepted by Oxley and Baker as a compromise needed to move the bill forward. [Washington Post, 10/8/03]

February 24, 2004: At a Senate Banking Committee hearing, Norman Rice, President and CEO of the Federal Home Loan Bank of Seattle questioned having low-income Americans use ARM's to finance their homes. In addition, Senator Sarbanes questioned the Federal Reserve's promotion of alternative mortgage products over traditional fixed rate mortgages:

* Norman Rice: "Particularly if you're talking about serving an underserved constituency. Adjustable rate mortgages for a low income constituency is a nightmare."

* Senator Sarbanes: "[The Federal Reserve] is pushing adjustable rate mortgages.and throwing this risk back on the consumer." [Senate Banking Committee Transcript, 2/25/04]

June 30, 2004: After encouraging the use of non-traditional mortgages, many of which re-set with rising interest rates, the Federal Reserve begins to raise rates-17 consecutive, 25 basis point increases that take the Federal Reserve Funds rate from a 46-year low of 1 percent in June 2004 to 5.25 percent in June 2006. [Market News International, 4/29/08]

October 26, 2005: House of Representatives passed regulation reforming the GSE's. The bill passed the House 331-90 (Republicans: 209-15; Democrats: 122-74), and would have given the new regulator broad authority over setting capital requirements and limiting portfolio size. Senate Democrats picked that bill up and offered it, but the Administration opposed that legislation. According to Mr. Oxley, the White House gave Congress and the GSE reform legislation "a one-finger salute."

* "We missed a golden opportunity that would have avoided a lot of the problems we're facing now, if we hadn't had such a firm ideological position at the White House and the Treasury and the Fed," Mr. Oxley says." [Financial Times, 9/11/08]

February 7, 2007: Federal banking regulators released their voluntary Guidance on Nontraditional Mortgage Products for mortgage lenders. However, the guidance did not apply to subprime mortgages. [Senate Banking Committee Transcipt, Prepared Statement of Martin Eakes, 2/7/07]

March 22, 2007: Senator Dodd laid out how the Federal Reserve was responsible for the "perfect storm" sweeping over American homeowners. At a Banking committee hearing Dodd said, "By May of 2005, the press was reporting that economists were warning about the risks of these new mortgages. In June of that year, Chairman Greenspan was talking about "froth" in the mortgage market and testified before the Joint Economic Committee that he was troubled by the surge in exotic mortgages." [Senate Banking Committee Transcript, 3/22/07]

August 6, 2007: At a White House morning press briefing, in response to a question whether the housing market is correcting or in crisis, President Bush says that the economy is stable: "[I]t looks we're headed for a soft landing." [Remarks By President Bush, 8/9/07]

November 15, 2007: Senator Reid asked unanimous consent to pass the FHA Modernization Act, but Republicans objected. [Congressional Record, 11/15/08]

December 4, 2007: In response to a question about whether the Administration was too slow to recognize the subprime problem, President Bush said: "We've been working on this since August." [Remarks By President Bush, 12/4/07]

December 6, 2007: Senator Reid asked unanimous consent to pass the FHA Modernization Act, but Republicans objected. [Congressional Record, 12/6/08]

October 4, 2007: At a news conference on Wednesday, House and Senate Democrats outlined a plan to help low- and middle-income families keep their homes." [New York Times

Congressman Kanjorski on Anti-Predatory Lending Legislation on House Floor

Predatory Lending Legislation is a post from: Upside Down Mortgage

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There is a great quote regarding history that goes – those who do not study history are doomed to repeat it.  However, it seems that even as we are watching history play out, we are seeing people repeating it again and again.  A huge portion of our current economic crisis was caused by subprime mortgages and predatory lending practices.  Unfortunately, some companies are going back to the subprime concepts.

Toll Brothers Inc. is using a subprime tactic to lure new home buyers, offering a 3.75% interest rate for seven years on conforming loans. Many companies are expected to copy the concept, in spite of how badly the economy collapsed because of it.  During the housing boom, home buyers were tempted by loans that offered shockingly low rates, only to see them reset higher, sometimes very quickly, which resulted in crippling payments two and three times the original amount.  People who were banking on a home increasing in value were sorely disappointed.  This tactic is once again being used by mortgage companies to attract prospective homeowners, ignoring how this very tactic crushed large portions of the nation’s economic vitality.

If you would like to witness for yourself just how bad the financial carnage is, go to the office of any loan modification attorney and see the long lines of people hoping they can get some help in avoiding foreclosure and stay in their homes.  People with ARM loans which have adjustable interest rates watched their monthly payments spike, often sapping them of any financial security they had.  People paying two or three times as much for their monthly mortgage payment meant less money spent on food, clothes, healthcare, cars, etc.  This hurt homeowners as well as the economy as a whole.  The number of foreclosures in certain neighborhoods, especially in California, went through the roof, as people from San Diego to Eureka and from Needles to Santa Monica had to walk away from homes they’d lived in for years.

California loan modification attorneys have seen serious fallout from all the foreclosures; people who were once pillars of their community had to move to lower income housing in other neighborhoods because they could no longer afford their mortgage payments.  Sometimes, whole communities seemed to be uprooted, and entire blocks were just covered in “for sale” signs.  City and state governments were crippled because they were not bringing in property taxes and as a result municipal services shut down.

Much of this was caused by subprime mortgage practices, and the thought of these practices returning is terrible.  California loan modification attorneys have been working night and day since the economic crisis began to help people affected by the subprime mortgage crisis, and other homeowners as well.  Foreclosures ruined entire communities, and even with loan modification attorneys working tirelessly, sometimes it seemed like a never ending battle.  For many people facing foreclosure however, a California loan modification attorney might just be their best friend.  Loan modification attorneys can negotiate with lenders, file paperwork and effectively fight to keep people in their homes and off the streets.  Trying to do a loan modification on your own might be a losing battle because of how much work it takes.  However, having a seasoned loan modification professional could save you tens of thousands of dollars in the long run.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Author: Greg Feldman

About the Author:

We are the #1 website for FREE loan modification help and mortgage assistance programs to stop foreclosure. Loan Modification Help Center has information about loan modifications and resources to help you with your home loan modification Learn what agreement, and government help is available today!

Source – Feldman Law Center – Are Subprime Mortgages Returning?

Predatory Lending Attorney San Diego is a post from: Upside Down Mortgage

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Question: Why are republicans so intent on destroying America?

First Bush and his republican rubberstamp Congress dereulate the banking industry.Which led to predatory lending.Basically putting many unqualified buyers in the real estate market.
Thus creating the boom in the economy for the first 6 years of Bushs’ presidency.
Also while this was happening Bush took a budget surplus and turned it into deficit spending.Spending more then ALL the other presidents combined!
Now that democrats want to spend money here at home all you hear from the republicans is whining about the deficit they ran up!
Oh and let’s not forget about how they didn’t bother investigating the worst terrorist attack ever on America for more then a year!
Warren you didn’t even try to answer my queestion.Why because I’m right?

Answer: It's called selfish greed, and it comes in all sizes and shapes. We are seeing what a strict free-market system has wrought, and while capitalism is still the desired choice, said capitalism must be tempered by oversight and rules. Since the markets were deregulated by bush/gramm, we are now paying for it--you, me, everybody else (even including the non-answerer, warren). Republicans don't really want to destroy america so much as they just want all her money and power, but they should be careful what they wish for, as the saying goes.

Bank of America - credit card pushers

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Regulation of lending institutions is handled primarily by individual states, and this growing industry exists atop an active and shifting legal landscape. Lenders lobby to enable payday lending practices, while opponents of the industry lobby to prohibit the high cost loans in the name of consumer protection.

Payday lending is legal and regulated in 37 states. In Georgia and 12 other states, it is either illegal or not feasible, given state law. When not explicitly banned, laws that prohibit payday lending are usually in the form of usury limits: hard interest rate caps calculated strictly by APR.

In the United States, most states have usury laws which forbid interest rates in excess of a certain APR. Some payday lenders have succeeded in getting around usury laws in some states by forming relationships with nationally-chartered banks based in a different state with no usury ceiling (such as South Dakota or Delaware). This practice has been referred to as “rate exportation”, the “lender/servicer” model, or the “rent-a-bank” model. Under the legal doctrine of interest-rate exportation, established by Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. 439 U.S. 299 (1978), the loan is governed by the laws of the state where the bank is chartered, regardless of the borrower’s state of residence. This is the same doctrine that allows credit card issuers based in South Dakota and Delaware states that abolished their usury laws to offer credit cards nationwide. As federal banking regulators became aware of this practice, they began prohibiting these partnerships between commercial banks and payday lenders. The FDIC still allows its member banks to participate in payday lending, but it did issue guidelines in March 2005 that are meant to discourage long term debt cycles by transitioning to a longer term loan after six payday loan renewals. As a result, no federally insured banks engage in the business of payday lending as of 2007 using an agency model.

For usury laws to be effective, they need to include all loan fees as part of the interest. Otherwise, lenders can charge any amount they want as fees and still claim a low interest rate. State laws in the United States generally preclude charging of fees other than those expressly permitted by law, and the federal Truth In Lending Act requires disclosure of all fees. Payday loans, because of their simplified pricing structure, do not contain hidden fees or charges.

Some states have laws limiting the number of loans a borrower can take at a single time. This is currently being accomplished by single, statewide realtime databases. These systems are required in Florida, Michigan, Illinois, Indiana, North Dakota, New Mexico, Oklahoma, and Virginia. These systems require all licensed lenders to conduct a real time verification of the customer’s eligibility to receive a loan before conducting a loan. Reports published by state regulators in these states indicate that this system enforces all of the provisions of the state’s statutes. Some states also cap the number of loans per borrower per year (Virginia), or require that after a fixed number of loan renewals, the lender must offer a lower interest loan with a longer term, so that the borrower can eventually get out of the debt cycle. Borrowers can circumvent these laws by taking loans from more than one lender if there is not an enforcement mechanism in place by the state. Some states allow that a consumer can have more than one loan outstanding (Oklahoma).

Federal regulation

In the US, although payday lending is primarily regulated at the state level, the United States Congress passed a law in October 2006 becoming effective on Oct. 1, 2007 that caps lending to military personnel at 36% APR as defined by the Secretary of Defense. The Defense Department called payday lending practices “predatory”, and military officers cited concerns that payday lending ruined low-paid enlisted men and women’s finances, jeopardized their security clearances, and even interfered with deployment schedules to Iraq.

Some federal banking regulators and legislators seek to restrict or prohibit the loans not just for military personnel, but for all borrowers, because the high costs are viewed as a financial drain on the working and lower-middle class populations who are the primary borrowers.

About the Author:

Get Fast Payday Loans

Visit Online Payday Loans Now !

Source – Regulations For Payday Loans And Their Effect On Payday Lending

Predatory Lending Database Illinois is a post from: Upside Down Mortgage

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Question: Ameriquest Multistate Settlement in PA?

I have been one of the many thousands of individuals that had the misfortune of refinancing my home through Ameriquest Mortage. Due the predatory lending tactics of these scumbags, I was forced to sell my home to avoid foreclosure and futher damage to my credit.

I have received paper work from the State Attorney General’s office in Pennsylvania in regards to the restitution payment I am able to receive under the multistate settlement against Ameriquest. The minumum amount I am eligible to receive is $320.62, which certainly does not feel like “restitution” to me.

I am curious as to how many Ameriquest borrowers in the state of PA will participate in the multistate settlement or seek other legal action ? Does anyone know of a law firm in PA that has filed for a class action law suit against Ameriquest ?

Regards,
Chris

Answer: Approximately 15,000.

http://www.ameriquestmultistatesettlement.com/index.htm

Howard Nassiri LLP, Predatory Lending

Predatory Lending Tactics is a post from: Upside Down Mortgage

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Question: Isn’t the Bush administration responsible for creating the imminent depression?

In 2003 the Bush administration’s Office of the Comptroller of Currency (OCC), a part of the Department of Treasury, invoked a clause from the 1863 National Bank Act to preempt state laws against predatory lending, thereby rendering those state laws inoperative.

The OCC also formulated new rules prohibiting states from enforcing any of their consumer protection laws against national banks.

So anyone who saw what was going on and wanted to try to stop the predatory lending had their hands tied by the Bush administration.

So basically, the Bush administration gave a green light to their financial buddies on Wall Street to rob Americans blind, and drive the US into a recession in the process.

What a big surprise, considering that Bush has ties to the financial industry.

So shouldn’t we be thanking the Bush administration for creating our next depression?

Answer: It is his policies which are at fault, so, yes, Bush would be responsible for the mess that we are currently in.

As far as those who are trying to blame Clinton (don't worry, Clinton has enough blame which should be placed on him with NAFTA) BUSH could have STOPPED whatever Clinton put into place! Another words, Bush is responsible for implementing it. I know that Bush stopped all the clean air laws from going into affect...this is no different!

Is it not interesting that right around 2003 is EXACTLY when we first started having problems with the housing market? Things that make you go, Hmmmmmm.

Rep. Frank - Mortgage Reform and Anti-Predatory Lending Act

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Imagine borrowing $50 from your brother to pay the phone bill. The following month your brother comes to you and says you now owe him $450. I know this sounds absurd but I just read an article citing a lady living in Ohio borrowed money from her local Payday Loan lender to buy her child school clothes. She obviously didn’t understand the terms or nature of the note and failed to pay the borrowed amount back on her following payday. The article went on to bash lenders and how they are the vultures of the financial services world. A bit harsh but many legislators and politicians share the same view.

This creates a unique situation. On one side of the divide, you have consumers generally cash poor and in need of services like this. Lawmakers and politicians wage a warlike protest against predatory lending practices in which they believe is the foundation of payday loan lending. Then we have the actual lending companies. They provide the service, make the money and take all the heat.

Do cash advance companies provide a valuable service? Well that depends on who you ask. I find it interesting that the people in opposition of these loan types are for the most part financially well off. Ask the consumer needing money to pay a light bill if he is ok with the finance charges and you’ll know what I’m talking about.

The bottom line is that the poor lady that borrowed the $50 did not pay back the loan as agreed to. In situations like this, it would have been better to not take out the loan. Unfortunately not everyone takes the time to read and/or understand the financial terms.

The good news is that there are many credible payday loan companies that make extra effort to educate their consumers on the ins and outs of personal finance and payday loan basics.

The key to not falling into the same unfortunate trap as the lady mentioned above is to understand your options before you actually need it.

Things to remember:

1. A payday loan is meant to be a short term solution to your emergency cash needs.

2. Be sure to plan for the payback. The loan is borrowed against your next paycheck so you’ll need consider that amount gone from your wages. Many payday loan companies offer an extension option. Be careful! This is where it becomes expensive. You’re better off biting the bullet and paying back the loan in full plus finance charge.

3. Communicate with the lender. Ask questions. Make sure you understand what you are committing to.

About the Author:

Randy San Nicolas is the managing partner of Launchpad Marketing, LLC and owner of http://www.fastmoneyfinder.com and http://www.ultimatecashfinder.com. The sites provide consumers with a Payday” target=”_blank”>www.fastmoneyfinder.com/howitworks.aspx”>Payday Loan matching making service designed to connect lender and borrower.

Source – Debt That Goes From $50 to $450 In Just 30 Days

Predatory Lending In Ohio

Predatory Lending In Ohio is a post from: Upside Down Mortgage

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There are times when people complain about the number of laws there are in this country. How is anyone to keep track when Capitol Hill keeps adding new laws to the statute books? Even the lawyers find it hard to stay on top of all the changes. That leaves ordinary people with no chance at all. Yet, in some areas, the laws can be very helpful to ordinary people. They may not even need to know if government changes the way in which business is regulated. The people can be protected without them ever being aware of it. So the lobbyists start to work. This is big government not little government. This is the nanny state not the rugged individualism that made the US such a great place to live. People should be allowed to stand or fall on their own without the state having to get involved. We have all heard it all before. And the reason this time? Well, there is a bill in the Senate proposing a national cap on the interest rates charged on consumer loans. The maximum annualized rate would be 36%. Needless to say, the loan industry is up in arms. It seems no-one can lend money and make a profit if interest is pegged at such a low figure. So will the law change? Let us go back to 2006 when the Department of Defense persuaded Congress to impose the same cap on all loans made to military personnel. According to the DoD, the families of those in active service were being victimized. Many families were being forced to pay 400% and more in annual interest. Curiously, no-one chose to see the same rates being charged on loans to ordinary people. As it stands, only fifteen states have stepped in to protect their citizens. When people take cash advances against their next pay check, they are so easily caught in a spiral of debt they cannot escape. Those promoting the current bill justify the general cap by saying there will be no cost to the taxpayer and it will save billions of dollars from being sucked out of the pockets of the poorer members of our society. We need to be clear about one thing. Payday loans do serve a useful function. When many are denied access to bank overdrafts and their credit rating is not good enough to get generous limits on their credit cards, these loans can bridge people when there is a financial emergency. The facility is available with few formalities, the money deposited in the bank account the next working day. It is a quick an easy solution to a short-term problem. But, as it stands, the lenders are acting in a predatory way, abusing those who are dependent on their loans. If the bill passes, the maximum interest chargeable on a payday loan will be 36% but states can enact lower limits. In Arkansas, for example, the cap is 17%. Help is on the way so long as the lobbyists do not sideline this protective measure.

About the Author:

David Mayer is a frequent contributor to http://www.one-click-payday-loan.com/where-are-the-laws-in-all-this.html and is a highly regarded writer, having professionally dealt with numerous subjects. Visit the site to read David Mayer’s contributions.

Source – Where are the laws in all this?

Predatory Lending Statute Of Limitations is a post from: Upside Down Mortgage

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Question: Does this issue by Nader against Obama reminds you of someone now under indictment?

In an interview with CNN on Monday, Nader accused Illinois Sen. Barack Obama of name-calling and challenged him to “address the issues.”
“Above all, explain why you don’t come down hard on the economic crimes against minorities in city ghettos: payday loans, predatory lending, rent-to-own rackets, landlord abuses, lead contamination, asbestos,” Nader said.

http://www.nytimes.com/2007/06/14/us/politics/14rezko.html?pagewanted=1&ei=5088&en=e1200b3bd12fba7c&ex=1339473600&partner=rssnyt&emc=rss

http://www.cnn.com/2008/POLITICS/02/25/nader/index.html

Answer: Maybe because when all each fails to get rid of a pest...a cochroach...they bring in the bazooka.

Nader is there to "save" america and rid us of this evil "perfect" muslim/christian man.

You are right battman. Obama is a chameleon. He changes colors like underwear.
NOW we are finding out that he changes religions the same way.

Hearing on Predatory Lending: Kucinich Opening Statement

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Finally, a reform bill that puts the responsibility where it belongs – back in the lap of the lender. By toughening some of the old rules, and adding rules that should have been there in the first place, this bill makes the lender more accountable when it comes to negotiating a mortage.

The ominous sounding “Mortgage Reform and Anti-Predatory Lending Act of 2009″ introduced by the House Services Committee is moving ahead after a successful 45-19 vote. It still needs be cleared by Senate and signed by the president before being enforced.

If it seems that this bill is moving quickly, it is. Over 2 million subprime mortgages are expected to reset to higher interest rates in the next 18 months, and this reform will be part of the action implemented to reduce the resulting national fallout.

Here are some of the highlights of this bill:

Licensing for mortgage brokers and bank loan officers will become standard.

Previously, larger incentives were paid out to mortgage brokers for securing higher rate or higher risk mortgages; with the new bill, no incentives can be attached to the interest rate or type of mortgage.

Mandatory quality control for mortgages on a national level will be enforced. Standard rules will include encouraging lenders to provide long term, fixed-rate loans with consistent market rates, instead of low interest introductory rates or negative amortization. It will also hold lenders accountable to find terms and rates that are appropriate for the individual borrowers and their ability to repay. Lenders will also be required to offer the option to choose a loan without a prepayment penalty. Mandatory arbitration clauses in most mortgages will also be removed.

If a borrower’s rights were not considered according to the rules of this policy, they would be eligible to cancel their loan contract and receive a refund of all payments, fees and legal costs. If a borrower committed fraud or was untruthful about their situation when applying for a loan, they would not be eligible for the same recourse.

Lenders offering anything other than a 30-year fixed-rate loan, is required to maintain a minimum 5% investment in the loan until it is paid off. If it goes into default, they would own part of the loss. Today, lenders simply sell off the loans and walk away. The intention here is to discourage fly-by-night lenders or those offering low introductory rate sales or promotions to entice buyers. Many believe this will put a strain on the smaller mortgage companies, having to set aside securities to cover any potential losses.

Anyone considering refinancing will have to pass a “net tangible benefit” test that indicates that the borrower will be better off financially with the new loan.

Stay tuned for more details. In the meantime, watch for the latest “Credit Card Reform Bill that recently squeaked through the U.S. Senate Banking Committ on a 12 to 11 vote. Although many believe this is an area in dire need of reform, there is the question that it will make it even harder for the average consumer to get credit approval.

About the Author:

Visit LeslieEskildsen.com for all your Orange County real estate needs. Compare the market in surrounding areas including real estate in Mission Viejo.

Source – Spring Ahead With the 2009 Mortgage Reform Bill

DOUCHE BAG LIAR MCCAIN ON FOREIGN POLICY

Anti Predatory Lending Policy is a post from: Upside Down Mortgage

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Illinois foreclosure listings represent the fourth highest in the country.

California is at the top of the list with 32,500 followed by Florida with

approximately 27,000 listings and Colorado at roughly 11,000 filings.

Combined with Illinois, these four states account for 52% of all homes in

foreclosure nationwide.

The staggering foreclosure rates in Illinois prompted Governor Rod

Blagojevich to file amendments to HB 4050, the Illinois Predatory Lending

Database Program. HB4050 protects consumers fight predatory lending

practices by shifting focus on the lenders who offer non-traditional types of

loans.

Under the proposed rules for HB 4050, Cook County first time homebuyers

and owners opting to refinance their primary residence will be

recommended for financial counseling if the loan they are considering

contains any of the following provisions:

? Permits interest-only payments;

? Allows payments that results in negative amortization;

? Total points and fees payable by the borrower exceed 5% of the

amount of the mortgage;

? Approval of the loan relies on the stated income of the borrower;

? A pre-payment penalty is included; or

? The financing transaction includes a second lien on the property,

often known as an 80/20 loan.

HB 4050 main purpose is to alert consumers that subprime lending

practices can lead to financial ruin. Todays housing market focuses so

much on the credit history of the homebuyer, and with some homebuyers

who have had past credit issues, spotty employment or not enough funds

for a down payment — some lenders have gone to great lengths to get

their business. However, this practice is costing the same homebuyer way

more than they can afford ¨C without them even realizing it. By enacting HB

4050, these same homebuyers will be instructed and informed regarding

the types of loans available, the type of loan they are considering and

what it means to their financial future. Many of these items are not

currently provided by the lenders who practice subprime loan lending.

Luckily, Governor Blagojevich has an eye on his Illinois homebuyers and the

lenders who serve the Illinois residents. Currently, HB 4050 is in the pilot

program phase and is being piloted in Cook County. Illinois residents

outside of Cook County should expect to see it offered to them also in the

near future. The governors¡¯ mission is to see the Illinois foreclosure listings

numbers drop and this is a great start to realizing that mission.

About the Author:

Bob Smith is a freelancer but regularly writes for ForeclosureListingsNationWide.com. You can get more information on Illinois foreclosure listings at http://www.foreclosurelistingsnationwide.com.

Source – Illinois Foreclosure Listing Tops 11,000 Addresses, Governor Steps In!

Predatory Lending Cook County is a post from: Upside Down Mortgage

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Last week, and just today, we received in the mail a notice titled “Notice of HUD Rights” from a company called National Foreclosure Relief based in NV (addressed to the landlord/homeowner). At first, I thought this was some type of solicitation and threw the first one away. It states that the notice is not an attempt to collect a debt but that the time to enter into a repayment plan is running out.

On the back is states:
“As of Jan. 19, 2001, the US. Department of Urban Development mandated that all borrowers who had loans governed by their loss mitigation guidelines be informed as to their rights to repayment programs.”…

The Homeowners have other properties they manage/lease aside from working in separate professions. I am almost certain that if a foreclosure is of concern then they would know about it.

My question is that if there is a foreclosure, do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from ‘legal experts’ who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us?

Also, my question is do we have a right to know if there is a foreclosure, and do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from ‘legal experts’ who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us? Thank you

Thanks in advance.

National Foreclosure Relief And Notice of HUD Rights is a post from: Upside Down Mortgage

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The economic recession has affected a lot of homeowners. And in areas where the home values have declined significantly, many of them are now realizing the truth that they are unable to pay for their mortgages. As most of them were not ready for the risks involved with these loans, they are now finding themselves applying for countrywide loan modification to help avoid foreclosure.

Countrywide Financial Corporation is a Financial advertising and service company (which means that it has possession of stocks of other companies) that develops residential (Countrywide) mortgage banking and other dealings.

Through its National Homeownership Retention Program, the Bank of America provides their customers the significant help and resources that they need to maintain homeownership. It also aids their customers to achieve $8.4 billion to 400,000 Countrywide borrowers nationwide. Not only this, but Countrywide has started positive outreach to help suitable borrowers.

At this time, the Federal government is now encouraging all lenders to consider principal reduction for borrowers who meet certain requirements. If you are a borrower who meets a lender’s requirements for a countrywide loan modification option, then chances are you are qualified for a reduction in your principal balance. Although not every homeowner can avail of this option, those who are suited to this will find it very helpful in avoiding possibilities of foreclosure. Here are some helpful guidelines to help you know if you might be eligible.

First, Countrywide settled claims that were valued to be $8.6 billion dollars to homeowners who were holding risky loans and ever since that original settlement, two other states were also included to help other borrowers as well. Borrowers living in these states have the option of applying for a principal reduction. The states that are included in the special Countrywide Loan Modification program are:

Arizona, Texas, California, Connecticut, Iowa, Illinois, North Carolina, Michigan, Florida, Ohio, and Washington – as well as Tennessee, Mississippi and Pennsylvania.  If you live in one of these states, then you may be qualified to participate in the Countrywide loan modification program offered as part of the predatory lending lawsuit.  However, should you be ineligible, then you can still apply for a reduction of payment in order to avoid foreclosure.

Second, for those homeowners who are stuck in Pay option Arm loans (this is where the loan balance actually augments with each minimum payment), then you are a good candidate for a principal reduction.

In most cases, each Countrywide loan modification is examined on a case by case basis, but borrowers can make the odds better by understanding the lender’s requirements for acceptance and the proper procedures on how to how to complete the application properly. It is highly recommended that homeowners apply for a Countrywide loan modification as most lenders have set aside billions of dollars to assist borrowers in saving their homes.

About the Author:

A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.

For more inquiries, you may want to visit Countrywide Loan Modification or call directly at 1.888.864.1663 (TOLL FREE) for details.

Source – Countrywide Loan Modification: Do You Qualify for a Principal Reduction

Countrywide Predatory Lending Settlement is a post from: Upside Down Mortgage

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Writing a hardship letter to your mortgage lender may be the only chance you have to save your home from foreclosure. You must have a valid hardship to qualify for any type of loss mitigation. A hardship letter is a detailed explanation of a hardship in your life that has caused you to fall behind in your financial obligation to your mortgage lender. In your letter, outline the specific details of your reason for default along with supporting documentation. Your hardship must be temporary and you must now be in a position to begin making payments on your mortgage.

Important information you will need to write a letter of hardship include:

• Date
• Loan Number
• Reason for Default – Hardship
• Supporting Documentation
• Detailed events
• Dates of Events
• Your proposed outcome – what you would like to happen
• Documents supporting end of hardship

Some valid reasons for hardship that will be accepted in a hardship letter include:

• Death of Borrower
• Death of spouse or family member
• Unemployment
• Decrease in working hours
• Elimination of overtime or second job
• Involuntary job relocation
• Increase of expenses due to short term unemployment
• Mandatory pay reduction
• Decline in earnings for self employment
• Failure of business
• Short term or permanent disability
• Increase in expenses due to illness
• Divorce
• Incarceration

Keep your letter detailed and to the point.

Top Reasons Homeowners Fall into Foreclosure:

1. Loss of Job/Economic Recession – Many times circumstances are beyond the homeowners control like a job layoff due to downsizing or business closing or a slowdown in the economy.
2. Predatory Lending – Some lenders will approve buyers for amounts that are greater than they can really afford with high interest rates or with adjustable rate mortgages.
3. Divorce – Typically, a spouse is awarded the house in the divorce and can’t afford the payments on one income. Divorce rates are high; therefore this has become a common reason for foreclosure.
4. Medical Illness – Unexpected medical illness can cause great financial hardship but are a necessity. Medical expenses can cause you to fall behind in your mortgage.
5. Buying a Home Before Sale of Existing Home – Impatient home buyers will sometimes buy a new home before they sell their existing property. Having to pay two mortgages can cause a financial hardship.

About the Author:

Samples and information about letters of hardship to prevent or avoid home foreclosures.

Source – How to Write a Hardship Letter to Avoid Home Foreclosure

Blacks & Latinos Are Still Victims of Predatory Lending Part II (VIDEO)

Predatory Lending Recession is a post from: Upside Down Mortgage

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Question: Who is at fault for the Subprime Mortgage Crisis?

I’ve heard opinions that the subprime mortgage crisis is the result of predatory lending, uneducated borrowers, over-valued homes, and a lack of government regulation. What do you think is the main cause? Are there other causes than the ones I mentioned? How do we avoid this situation in the future?
It sounds like there are a lot of groups to blame, but how do we keep this sort of crisis from recurring?

Answer: How can we keep the "mortgage crisis" from happening again? Those who study mortgage trends have said that there has been a pretty consistent pattern of a "bust" in mortgages about every 18 years since World War II. We've seen problems like this before and we will survive this "crisis." If you're looking for a mortgage right now, rates are still very good. The world is not ending (as the politicians who are itching to "help" would have us believe).

In my opinion, the best way to prevent this from happening again, is for the Free Market system to be allowed to punish bad decisions and reward good decisions (as it always does). Government regulation is just something politicians and anti-business people like to propose because it makes them feel good. In reality, the mortgage industry is already highly regulated... and yet the "mortgage crisis" occurred. One of the many regulations that the government has is to disclose VERY clearly and plainly the interest rate of the loan and any adjustments to the interest rate... and yet borrowers claimed that they "didn't understand what they were signing."

Now to your question... In summary, EVERYONE involved played a part in the "bust" to some extent or another.

BORROWERS -- Rather than living within their means, many borrowers decided that they wanted to have a bigger, more expensive house than they could afford. In order to afford these houses, they often turned to loan products such as "Interest Only" loans. With IO loans, you basically pay the minimum amount possible every month and the principal is never reduced. To complicate matters, some loans featured "zero down" where the borrower had absolutely NO equity in the property. Here is an illustration of a typical problem: A property is worth $800,000 at the time of purchase. The borrower takes out an Interest Only loan for $800,000 (putting nothing down). Then the property value drops to $700,000. Now the borrower has a loan for $800,000 for a property that is only worth $700,000. The borrower has ZERO equity in the property so guess what... they walk away from the property and the lender ends up taking the loss.

MORTGAGE COMPANIES (BAD OR POOR UNDERWRITING GUIDELINES) -- In an effort to make as many loans as possible (and to sell these loans to foolishly eager investors), many mortgage companies relaxed their guidelines beyond reason. Some loans had a Loan-to-Value (LTV) ratio of 100 (or higher on rare occasion!). If the property was worth $100,000, then an LTV meant that $100,000 was loaned to the borrower (as stated before, no equity). The lower the LTV, the less risky (and more desirable) the loan is. Another arguably stupid mortgage product was the "80-20" loan. A loan with an LTV of 80 or lower is not considered risky in the mortgage business. Therefore, Mortgage Insurance (MI) is not required for loans with an LTV of 80% or less. (If a borrower has an LTV of 85 and pays it down to 80, then they can drop the MI from the loan.) MI is basically insurance against borrower default. For example, if a borrower defaults on his loan and the lender forecloses and sells the property and loses $2000 in the process, then the MI company will cut a check to the lender for $2000 to make the lender "whole." Rather than requiring borrowers to carry MI on their loans (which would have mitigated risk), the mortgage companies allowed the borrowers to take out a second loan on the same property (a "second lien" or Home Equity Line of Credit or HELOC). This HELOC money was then used as the "money down" on the first loan so that MI could be avoided. For example, if the property is worth $100,000, the borrower might get a HELOC for $20,000 and put that money down on the first loan, thereby lowering the LTV to 80 (thereby exempting them from MI). Another popular loan was an Adjustable Rate Mortgage (ARM) or "Fixed-Adjustable" (where the Interest Rate is fixed for a few years and then starts to adjust (up or down) based on a financial instrument). Borrowers were allegedly given a low "teaser rate" and then (because they bought too much house) couldn't make the payments with the higher interest rate when the rate adjusted. (It seems hard for me to believe that an interest rate adjustment would be so severe that it would prevent someone from making their payments, but that's what the borrowers allegedly claim.) Maybe this is too many detailed examples, but suffice it to say that a lot of stupid mortgage products were offered by mortgage companies (and accepted by borrowers).

INVESTORS -- In their quest to make a "fast buck", investors bought up tons of these mortgages since these riskier "sub-prime" loans brought higher returns (higher interest rates). These investors should have performed a "due diligence" on the loans they bought; but they didn't. When investors purchase loans, there is usually (if not always) a "buyback" provision. This means that if a loan goes bad and the investor finds that there was some irregularity in the underwriting (the loan decisioning process) that the mortgage company who sold them the loan is required to "buy back" the loan. The problem is that most mortgage companies are "cash poor" (meaning that they borrow the cash that they lend from a "warehouse lender" temporarily until they can sell the loan to an investor and pay back their warehouse lender). So when these loans started going bad (hundreds of millions of dollars worth!), the investors demanded the mortgage companies buy back the loans (according to their agreement). So mortgage companies were now looking at buying millions and millions of dollars worth of loans back when they had little or no money of their own! So what happened? Countless mortgage companies declared bankruptcy. With all of the hullaballoo around bad mortgages, investors decided to stop buying sub-prime mortgages. Since there was nobody buying these mortgages and since mortgage companies don't have their own cash, mortgage companies found that they could no longer make these sub-prime loans. The sub-prime market dried up almost instantly.

RATING AGENCIES -- The job of rating agencies is to investigate the creditworthiness of investments (many of which included mortgage debt). These agencies did not do their due diligence and ended up giving these investments an artificially high rating. So investors thought the investments were less risky than they were. Investors will always buy investments that have a high return and low risk (but obviously they weren't low risk).

THE GOVERNMENT -- The government has always put pressure on mortgage companies to make loans to poor and/or minority borrowers. Because these borrowers typically have worse credit and/or less income and/or greater debt, they had to go to the "sub-prime" market to get a mortgage loan. Is it so hard to imagine that a borrower with less income, more debt and bad payment habits will default on a loan (especially when they've put little or no money down)? Of course not. But the government continues to "wish away" laws of basic economics and common sense. In order to "do right" by poor people and minorities, the government expected mortgage companies suspend their normal sound underwriting guidelines and business sense. (Obviously, the sub-prime problem goes beyond just poor borrowers, but my point is that the government contributed to the crisis to some extent.) The government is now poised and ready to exacerbate the crisis beyond what it is now by "freezing" interest rate adjustments. Here is an illustration of the problem: Let's say you have $5000 in cash. I'm a bank and I tell you that if you deposit your $5000 with me that I will pay you 1% during the first 2 years but then I will pay you 7% after those 2 years. So you deposit your money at the low rate of interest. After two years (when you're about to get your higher interest rate), the government comes in and says, "Sorry. You're not getting your 7% as promised. In fact, you can't take your money out of that bank; you must leave it there and only collect 1% for another 10 years." What will happen when you have another $5000 to deposit? Will you put it in my bank? Absolutely not. Why? Because you don't know if you'll really get the return you agreed upon. In the same way, if the government steps in and says to the investor/lender, "Sorry... you're not getting the return on your money that you negotiated... and you can't take back your money; you've got to leave it at the low rate," then guess what the investor is going to do. He will never invest in mortgages again! He will take his money to China or municipal bonds or any other vehicle in which he can get a RELIABLE return on his money. If he DOES decide to put money into mortgage debt again, he will demand a higher return to compensate for the greater risk that the government will step in and "help" again. (In other words, Interest Rates on mortgages will go up for EVERYONE!) Thank you Big Government Democrats and George Bush!

REGIONAL PROBLEMS -- Some regions in the USA had events that made the mortgage problems particularly bad. For example, inflated property values in California started deflating. Condos in Florida didn't sell as thought and many sit vacant. Companies providing jobs in the "rust belt" (such as Michigan) have moved or gone under; thereby leaving the local homeowners with no income with which to make their mortgage payments.

Sorry for such a long answer. Hope it all makes sense.

Thanks!

Bailout, Mortgage Fraud- BB&T Bank, Predatory Lending, Subprime

Predatory Lending Subprime is a post from: Upside Down Mortgage

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Subprime loans have been thrown into the media light recently in wake of the growing number of nationwide foreclosure. Stricter underwriting guidelines are being implemented by governmental agencies to protect both subprime lenders and borrowers from feeling the damaging effects of default and foreclosure.

But the damage has already been done for many mortgage origination companies that specialize in subprime lending throughout the country, especially in the Golden State.

“Bell Tolls For Subprime Lenders And Loans,” written January 5, 2007 by Broderick Perkins and published in Realty Times, provides an extensive list of the mortgage companies that are quickly realizing the dangerous risks involved with subprime lending.

“This week Middletown, CT-based subprime lender Mortgage Lenders Network USA (MLN) pulled the plug on its loan originating operations after growing from 7 to 1,800 employees in 10 years.”

Even more established companies are feeling the heat of the millions of dollars of defaulted loans within the past year or so and in fact, are melting.

“Considered the 11th largest subprime mortgage company, feeding some 12,000 brokers, Agoura Hills, CA-based Ownit Mortgage Solutions bought the farm in late 2006. It recently filed bankruptcy to stave off investors including Merrill Lynch & Co., JPMorgan, Chase & Co., Credit Suisse First Boston and other mortgage purchasers who were demanding Ownit own up and buy back more than $165 million in loans on which borrowers had missed payments.”

As subprime loan defaults increase, no mortgage company is safe. Perhaps, the most trouble fact about the damaging results of foreclosures and defaults is that this may only be the beginning.

Subprime loans grew in popularity during the great housing boom from 2000 to 2005 as many people who were not quite in good enough financial health to purchase property, did so via a subprime loan in fear that the boom would make property too unaffordable in the future.

The stipulations of these subprime loans were that they offered low monthly payments for either the first three or five years and would then reset to higher payments after the introductory period ended. This is when people began to default on payments. So, even though subprime loans have subsided a little more recently due to more knowledge and stricter underwriting, there will still be many more defaults over the next three years.

“Early last year, the nation’s largest subprime lender, Ameriquest Mortgage, agreed to a record $325 million predatory lending settlement and then proceeded to cut 3,800 jobs and shutter branches.”

Regardless of warnings and strict underwriting guidelines though, subprime loans will always create foreclose risks as long as they are in existence. The solution may be to wipe out the subprime option. Many California subprime companies are probably wishing they stuck to the more traditional market.

“Among more than 400 metropolitan areas tracked in the center’s study, the Top 14 metros with the greatest growth in subprime mortgage failures in 2006 were all in the Not-So-Golden State and included in the top five spots, No. 1, Santa Ana-Anaheim-Irvine; No. 2, Santa Barbara-Santa Maria; No. 3, San Diego-Carlsbad-San Marcos; No. 4, Santa Rosa-Petaluma; and No. 5, Napa.”

For more resources about real estate appraisers or even about California real estate and especially about San Diego real estate, please review these links.

About the Author:

For more resources about real estate appraisers or even about California real estate and especially about San Diego real estate, please review these links.

Source – Subprime Lenders Feel the Heat Especially in the Golden State

Mechanize Accountability for Stimulus Agencies with United States Public Search Docket Database

Predatory Lending Damages is a post from: Upside Down Mortgage

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Back when the housing market was hot, lenders were qualifying borrowers for loans who were probably never able to qualify for a home loan before.  These borrowers are now upside down on the mortgages because the rates adjusted and they can no longer afford their homes, in turn most are going into foreclosure, or being forced to sell through a short sale. 

In turn, homeowners and the government are taking more and more of these institutions to court, stating unfair and predatory practices. While most of these suits are still finding their way through the legal system, most banks have already settled for millions of dollars. 

Wells Fargo, Countrywide Financial and Citigroup are just a few among the rest of the defendants.  Borrowers who are suffering with such issues are turning to the legal system to save their homes.  Many professionals say they have not seen so many cases in over 23 years. 

Some Homeowners are seeking the courts’ help individually, while others are serving as part of class action lawsuits. With foreclosures continuing to rise, borrowers are looking to force banks to modify unaffordable loans or to stop them from foreclosing on homes. Often, they also seek money for loss and damages. 

Banks have faced lending lawsuits and have paid millions of dollars in settlements. But the recent housing boom was fueled by questionable loans that many borrowers had no hope of repaying, because realistically they would not be able to afford it in the long run.

During the housing boom the mortgage industry went after the middle-class borrowers, these people are able to hire attorneys and go after the lenders.  Borrowers in a more sticky financial situation, are turning to attorneys who take payment when the case is won.  In most cases when an attorney is hired to help against the foreclosure of their home, they win the case. 

There are also a ton of class action suits on behalf of thousands of homeowners. A lot of the class action cases are because borrowers were originated payment option adjustable-rate mortgages. This loan allows you borrowers to make very low monthly payments, with the unpaid interest added to the principal balance of your loan. Most borrowers have ended up defaulting on their payments because of this.  The purpose of the lawsuits are to get the lenders to restructure the loan to make it more affordable for the borrower.  This lawsuit will also seek damages for those borrowers who have already lost their homes or paid off their loans.

State attorneys general are also filing suits against the industry’s key players, stating deceptive business practices. The California-based lender agrees to do some more loan modifications and not to foreclose upon up to 2,200 loans without notifying the attorney general’s office and seeking court approval in certain circumstances.   Attorney Generals continue to hold the lender liable for this nightmare they have caused so many people. 

Bank of America agreed to spend $8.4 billion to lower the interest rates or loan balances of nearly 400,000 Countrywide customers with subprime loans or payment option ARMs.  The number one lender in the Country is now responsible for giving out loans that the borrowers could not afford 

Although there has been in increase in lending disputes, there aren’t as many lending lawsuits as expected, considering the how big subprime loans were during the housing boom. These suits are expensive and difficult to win.  Said cases could take anywhere from months to years to resolve.  

This lending crisis has left many people in a bind.  Seeking proper legal help is the only way to insure you get out if it in one piece. 

About the Author:

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com

Source – Mortgage Lenders Being Sued

Predatory Lending Lawsuits On The Rise is a post from: Upside Down Mortgage

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Question: Isn’t the timing of Eliot Spitzer’s hooker escapade funny, since he was just blowing the whistle on Bush?

On February 18, Eliot Spitzer published an article exposing the Bush administration’s accountability in creating the current credit crisis. He wrote how in 2003 the OCC, a Treasury Department office, preempted state consumer protection laws and emplaced new rules preventing states from going after national banks for predatory lending practices.

Then only a few weeks later, the FBI and IRS out his call girl escapades.

Was this coincidence, or an instance of silencing a whistleblower?

Answer: This was no coincidence... this was just more Bush manipulating.... I mean Spitzer and his hookers.. once again. who really cares except his wife... unless he was using public funds.. but that has not been proved... but just touch on going after Bush and the old Republican Dirt machine gets going.. they are the very best at it as always.

Why the character assassination of Elliot Spitzer?

Bush Predatory Lending Spitzer is a post from: Upside Down Mortgage

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