home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Predatory Foreclosure Assistance

R.I. attorney general reaches agreement with JMC Investments

August 12, 2005


A Rhode Island company that offered foreclosure assistance has reached an agreement with the attorney general to stop selling homes it purchased from desperate borrowers. State officials hope to have the properties returned to the original owners.

JMC Investments has reached an agreement with Rhode Island Attorney General Patrick Lynch to cease reselling properties it has purchased from homeowners who were faced with losing their homes, Mike Healey, a spokesman in Lynch's office, confirmed to MortgageDaily.com.

Lynch's office took JMC to state court, alleging deceptive business practices by not fully telling people they were losing their homes. Some simply wanted to refinance and did not want to sell.

"What these individuals did not know," Lynch said in a written statement, "was that when they signed the dotted line, they signed away their homes."

Sixteen properties are covered by the agreement. JMC is not permitted to record deeds or purchase agreements with any customers. Lynch's office is working with JMC on returning homes the company bought to their original owners, Healey said.

"Other than returning the deeds of the properties to their rightful owners, our biggest (stipulation) was ensuring that we'd be able to help any new victims who came forward because of the publicity of the issue," Healey said. "Our agreement with JMC does both."

Lynch said JMC targeted people who were facing the possibility of losing their homes. He called the company "unscrupulous."

"To take advantage of people who are extremely vulnerable due to enormous financial pressures is nothing short of despicable," Lynch said.

JMC would help find financing for people who could not get credit on their own. JMC would pay off the mortgages, and then the homeowners could buy the house back from JMC for $7,000. Homeowners also had to pay JMC's costs.

Lynch said the homeowners "specifically expressed that they did not want to sell their property and were assured by the defendants that foreclosure could be avoided without selling their homes."

Believing they would maintain ownership the homeowners signed various documents, Lynch said. But JMC did not allow their clients to have copies of all the documents.

"At a later date, the complainants attempted to either refinance the mortgage or sell the property, it was discovered that they had unknowingly and unintentionally executed deeds conveying their homes (JMC)," Lunch said.

In court papers Lynch accused JMC of running false ads in direct mail pieces and on the Internet, billing itself as a foreclosure specialist that helps homeowners save their homes.

"Their advertisements warn prospective clients against real estate agencies that will sell property at very little or no profit to the owner," Lynch said. "But that is exactly what JMC does. The bottom line for consumers is to beware of signing any papers without adequate knowledge or legal representation. You run the risk of not only having the rug -- but your home, as well -- pulled right out from under you."

Patrick Crowley is a MortgageDaily.com feature journalist and blogger, and a reporter and columnist for The Cincinnati Enquirer. e-mail Patrick at: [email protected]

Predatory Lending News
FTC and HUD settlements. Class action lawsuits. Predatory lending prevention. Archives back to 2001.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders