Here’s the official court filing (PDF) so you can get the full details on how Wells Fargo pushed or even fraudulently placed black borrowers into sub-prime loans, even when those borrowers could afford prime loans, along with an office environment where employees threw around racist slurs, calling black borrowers “mud people” and their mortgages “ghetto loans.” The official statements referenced in the NYT article are in this document in full. The affidavits begin on page 48. Two screenshots inside…
subprime fiasco
Loan Officers Detail Wells Fargo's Blatantly Racist Subprime Loans
By 6.7.09
UPDATE: Read the affidavits here.
Watch Out For "Equity Stripping" Scams
By 7.5.07
The New York Times has an article about a growing problem, a scam called “equity stripping.” Here’s how it works: You answer an advertisement targeting people who are facing foreclosure, but want to stay in their homes. You think you’re refinancing your loan at a lower rate, but in reality you’re transferring the deed to someone else. That person then takes out as much as they can against the value of your home. From the NYT:
Jessica Attie, co-director of the foreclosure prevention project at South Brooklyn Legal Services and the lawyer for the Johnsons, said her office was overwhelmed with homeowners who had handed over their deeds to people pretending to help “save” their homes.
We know times are tough and a lot of homeowners are facing difficult financial decisions, but make sure you know what you’re signing. If someone offers to “temporarily” buy your home, warning bells should go off.
Pending Home Resales Drop To Lowest Level Since September 2001
By 7.3.07
Pending sales of existing homes dropped for the third straight month as troubles in the mortgage industry continue to disrupt the housing market. Figures released today show a 3.5% drop in May, following April’s drop of 3.2% and March’s drop of 4.5%.
