Thursday, July 19, 2007

Jim Hood Takes On The Predatory Lenders

From the Clarion Ledger:
Customers of Ameriquest Mortgage Co. in Mississippi could receive rebates by fall as part of a $858,099 legal settlement, Attorney General Jim Hood said Wednesday.

More than 2,200 borrowers could nab $80 to $1,806 as restitution for alleged predatory lending practices by Ameriquest. The payment will vary depending on how many people participate.

"They misrepresented so many things out there to consumers who didn't understand," Hood said. "They just wanted a house."
....
Accepting the payment does not impact the consumers' legal rights in a bankruptcy, Hood said.

Borrowers were hit with hidden fees and penalties, Hood said. Lenders misrepresented the customers' income and assets to gain larger loans. The loans were financed months after purchase, and then the customers faced penalties.

Of course representatives of the industry and conservative shills will say that this too is contributing to an "unfavorable business climate."

The Clarion Ledger Article

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