Mortgage Lenders "Target Vulnerable Groups"
This blog has consistently denounced the push for subprime loans as a dangerous trend that will place people in over-priced homes with mortgages they can't afford. New York State Attorney General Eliot Spitzer has a different view, but is going after the industry none the less.
"Spitzer..is looking at whether minorities, the elderly and other "vulnerable groups" are being targeted by questionable lending practices. Subprime loans are made to borrowers with lower credit ratings because of past payment problems, high debt-to-income levels and other factors."
It's just another facet of the massive fraud, of course. Mr. Spitzer could have framed it as a doomed effort to keep the market from falling and to profit in the process. Countrywide Financial is a subject of the probe; there may be some justice left after all.
8 Comments:
You know when the end is near when: on the spanish radio station I sometimes listen to, 3 out of 4 ads are for "no credit/bad credit easy home loans"....
So sad...
Anonymous, how about a radio ad I heard a few months ago that promised to loan on the "future" value of the home. I guess that must mean a negative amortized note.
But I miss the old greenlight commercials on TV. The ones that has the singers that looked like a gospel group clapping their hands and singing "666 66 faster, easy money from greenlight". Ahh the goood ole days.
We have Gary Coleman plugging loans for people who don't own homes. Borrow up to $10k with bad credit. He says "sure the interest rate may be high, but the payments are low". Must have something to do with the fact that these poor people will be paying this off for the rest of their lives! I guess the lenders want to make sure those without homes don't get left out of the credit bubble.
Never saw the choir/greenlight ad, but I do know they are still running ads and doing some direct mail solicitations.
Does any one remember the ad for a refinance mortgage that showed the guy riding his lawn mower, saying he 'did it'(bought it all) by being in debt up to his eyeballs?
I would like to have a copy of that ad.
Minorities are a "vulnerable group"? That sounds a little condescending, to put it nicely.
Speaking of ads....I just got 4 fliers in the mail yesterday advertising "for sale" condo conversions in San Diego. I've never seen anything like it. These fliers were obviously expensive to put together and probably went out to every person in the city. Makes me wonder why they aren't selling and why the conversion companies have to advertise so much to get buyers through the door. I thought most of these condos had waiting lists to buy. One of the fliers is a repeat from a couple of months ago too. Is the condo market bottoming out here??
I saw the lawnmore ad the other day. It is classic. The sad thing is that I know people like that. And when they ask me why I sold and am renting, they look at me like I am the crazy one. Maybe I am, but now that I have found this site, I at least am comforted by the fact I am not alone.
(Is the condo market bottoming out here??)
San Diego condos may be as overpriced as Miami condos. Check the links section for a site dedicated to your market. Please keep us updated. Thanks.
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