NEWS AND MEDIA

Exposing Fraud and Damages in Home Mortgage Loans 

Within the United States predatory lending has grown substantially.  What the industry fails to do is to make consumers aware of lending institutions that have been found liable for violations of Federal and State lending laws, such as, the Truth in Lending, Regulation Z; Real Estate Settlement Procedure Act. Below are only a few articles that have appeared in the news or media concerning predatory lending.

In a press release issued by the Department of Law in New York, consumers where altered to check their mailboxes in a landmark settlement in predatory lending against Household Finance.  Household Finance agreed to pay $484 million dollars in restitution to consumers nationwide, including $37 million dollars to eligible New Yorkers. In New York alone the settlement provided for the following regions to receive:

• Long Island and New York City: over 6,200 borrowers will share nearly $10.8 million;
• Hudson Valley: nearly 2,500 borrowers will share approximately $4.3 million;
• Western New York: over 3,800 borrowers will share nearly $6.7 million;
• Central New York: nearly 2,450 borrowers will share more than $4.2 million;
• Rochester: nearly 2,100 borrowers will share more than $3.6 million;
• Capital Region: over 1,600 borrowers will share nearly $2.8 million;
• Binghamton area: more than 960 borrowers will share nearly $1.67 million; and
• North Country: nearly 1,300 borrowers will share more than $2.2 million.

Restitution payments to New Yorkers will range between $46 and $23,000. The average award New York consumers will receive is $1,730.  For more information see, Press Release, Office of New York State Attorney General, December 2002.

State of Alabama: $34,500,000 verdict involving “predatory lending”:

This case involved a lenders fraudulent action dealing with a home mortgage. In this case, the lender forged Plaintiff's name to mortgage documents. Even though the company was made aware that the mortgage was forged, the company still attempted to foreclose on the plaintiff's home. The jury found this was fraudulent activity and awarded a substantial verdict to try to stop this type conduct in the future. It should be noted that this does happen a lot [emphasis added] http://www.beasleyallen.com/verdicts_list.htm#

First Alliance Mortgage Settles ‘Predatory Lending Charges’ for up to $60 million dollars. See: http://realtytimes.com/rtcpages/20020322_firstalliance.htm

Capital City Mortgage settles a deceptive loan case which included Federal violations in the amount of $75,000.00. Associated Press, February, 2005.

Ameriquest Accused of Boiler Room Tactics: “Customers and former employees of Ameriquest Capital Corp., the nation's largest sub-prime mortgage lender, have claimed in court documents and interviews that the company has engaged in improper practices ranging from forging documents to lying about borrowers' income to qualify them for loans they can't afford.” Associated Press, February, 2005.

This merely touches the amount of news and media coverage that is available on this subject of predatory lending and victims of predatory lending.  See how you may qualify for an audit to expose fraud and damages.  For additional information contact PMA.