CA Foreclosures Hit Minorities Hard
A new study by a group that fights abusive lending practices found minorities are bearing the brunt of California's foreclosures. But the study doesn't adequately consider California's high unemployment, according mortgage bankers in the state.
More than half of foreclosures in California are on properties purchased by blacks and Latinos -- borrowers who are disproportionately more likely to receive expensive subprime loans that are harder to pay off.
That's the finding of a Center for Responsible Lending study released Tuesday that examined several years' worth of data from a variety of commercial and government sources, including census and voter registration databases and Home Mortgage Disclosure Act filings.
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HOEPA Threshold Raised
The dollar amount of loan fees that trigger a high-cost loan classification is being increased.
Borrowers Win Discrimination Lawsuit
A judgment has been entered against employees and executives of a Colorado mortgage firm who are accused of targeting borrowers who spoke little or no English in a scheme where home values were allegedly inflated.
Countrywide Sued Over Discriminatory Pricing, Predatory Lending
A lawsuit has been filed against Countrywide alleging the company steered prime Illinois borrowers into subprime mortgages. The company is also accused of charging minorities in the state more than equally qualified whites.
Big Morgan Stanley Subprime Settlement
Morgan Stanley has settled for more than $100 million allegations that it helped put subprime borrowers in unaffordable mortgages and soaked investors in the process.
Major Action Against National Mortgage Firm
A national mortgage firm is the target of big legal action by the government.
Mortgage Banking Issues
At a recent conference about legal issues, U.S. Department of Justice officials announced plans to step up enforcement against lenders that discriminate. Mortgage bankers discussed concerns that pending legislation, which would require them to retain an interest in securitized mortgages, could have severe consequences if passed.
The Mortgage Compliance Litigator
Alleged mortgage compliance errors are landing some of the biggest names in the mortgage business in court. A bankrupt lender was held liable for mortgage fraud committed by a convicted real estate agent, and a former senior executive tied to the failure of a big FHA lender has been banned from any association with government lending.
Wholesaler Liable for Broker Discrimination
The government has essentially settled with itself over alleged discriminatory practices by mortgage brokers on loans closed and funded through a defunct subprime wholesaler. The government claims the settlement marks the first time a wholesale lender has been held accountable for such broker behavior.
2 Wells Fargo Units Face Lawsuits
In two recent lawsuits, subsidiaries of Wells Fargo & Co. are accused of targeting minorities for predatory loans, causing increased foreclosures and violating a law protecting military personnel. In other mortgage-related litigation, a Texas-based company is being sued by North Carolina, while another Texas mortgage firm is suing former employees over alleged fraud.
