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Tuesday, May 15th, 2007

NPR Addresses Subprime Abuses

NPR recently interviewed past employees of subprime mortgage broker Ameriquest, and even with all of the information that's come during the current mortgage foreclosure crisis, some of the stories are shocking.

Former employees describe the company not just failing to mention payment increases and upward adjustments in mortgage rates, but directly telling consumers that their mortgage rates would not increase, and in some cases even concealing adjustable rate mortgage documents in a stack of paperwork with fixed rate terms described on the first page.

Listen to the interview on NPR's website.

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Posted in Mortgage Foreclosure | No Comments »

Friday, February 9th, 2007

Senate Committee Hears Testimony on Predatory Mortgage Lending Issues

On February 7, the U.S. Senate Committee on Banking, Housing, and Urban Affairs heard testimony from a variety of consumer advocates and mortgage industry spokespeople on the problems of predatory mortgage lending practices and their role in the mounting mortgage foreclosure claims across the country.  Although mortgage industry professionals suggested that the climbing foreclosure rate is the result of numerous possible and probably combined factors, the foreclosure rate for ARMs and other non-traditional subprime mortgages is substantially higher than that affecting traditional mortgages.

In addition, the Center for Responsible Lending recently conducted a study indicating that minority applicants are disproportionately steered toward high-cost subprime loans, even when their credit scores would have allowed them to qualify for more favorable loans or rates.

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Posted in Bankruptcy and the Economy, Mortgage Foreclosure | No Comments »