All Posts Tagged With: "predatory"
Mortgage News: The Crime of the Century
In New York two stock brokers have been found guilty of securities bait-and-switch.
The two men face decades of jail time for defrauding investors by selling securities which were described as being backed by federally-guaranteed student loans when in fact they were actually auction-rate securities, a more risky financial product.
So, let’s review. It’s illegal for stock [...]
No Predatory Lending In 2008?
The FBI is out with its latest annual mortgage fraud tally and the news is fairly grim: Despite a reduction in loan originations, fraud filings from financial institutions increased 36 percent to 63,713 in fiscal 2008 compared to 46,717 filings a year earlier.
This is an unhappy statistic, but it does not tell the whole story. [...]
Can You Trust Your Lender?
There is something new in the marketplace, what is being called the Fair Market Collaborative. As someone who has been looking for fairness in the mortgage marketplace since the 1970s you can bet that I welcome any effort to create a level playing field for borrowers.
But will the new collaborative really change marketplace [...]
Are Late Mortgage Payments Ever Okay?
Question: We have paid our mortgage several days after the due date but before the lender charges a late fee. Does this lower our credit score?
Answer: You need to look at this very carefully. A mortgage is a contract. It has certain terms and conditions. You want to honor all conditions.
In the usual case [...]
Why Aren’t Predatory Loans Illegal?
“Nationally and internationally, we must be on guard against predatory lending. It is nothing more than a scam, a crime, a lie.” Alphonso Jackson
It’s doubtful that anyone who has ever looked at the mortgage industry would disagree with the sentiments offered by former HUD Secretary Jackson. Predatory loans are terrible, a scam and certainly a [...]
Here’s A Fact: Predatory Lending Is Not A Crime
Speaking before big-shot investors on Wall Street last week, assistant Treasury secretary Anthony Ryan said the marketplace needs to be protected against financial predators.
“While predation is the law of the jungle in nature, as civilized society, we need to have laws in place to protect investors and consumers,” Ryan told the Securities Industry and [...]
Why Is Illegal Flipping A White-Collar Crime?
Hardly a week passes without more revelations of illegal flipping. Typical of what you see has been the recent situation in Cincinnati where more than three dozen people have been convicted in a $50 million illegal flipping scam.
Timothy Husvar, according to the Cincinnati Enquirer, was involved in illegal flipping worth $2.3 million over a [...]
What To Do About Predatory Loans
Predatory loans are the new horror of mortgage lending, a subject getting much attention in the media and with good reason.
In general terms predatory loans can be seen as financing which the borrower does not understand, cannot repay, or includes terms so onerous even loan sharks would be embarrassed. Such loans harm consumers, generate [...]
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