Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
5Activity
0 of .
Results for:
No results containing your search query
P. 1
Americans Against Predatory Lending White Paper Wall Street Abuses on Subprime

Americans Against Predatory Lending White Paper Wall Street Abuses on Subprime

Ratings: (0)|Views: 113 |Likes:
Published by 83jjmack
This provides useful and topical information and data on predatory lending and abuses.
This provides useful and topical information and data on predatory lending and abuses.

More info:

Published by: 83jjmack on Aug 11, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

12/25/2013

pdf

text

original

 
SPONSORSHIP OF REPORT
Preparation of this report was conducted byAmericans Against Mortgage Abuse™ [AAMA].AAMA is a newly formed nonprofit established tocombat predatory lending. AAMAs mission is “todefend and protect Americans and the Americandream of home ownership from unlawful, fraudu-lent , criminal, unethical and illegal acts.”
Our Goals Include:
1.Author and conduct consumer and educationalresearch into predatory mortgage lending andmortgage abuses;2.Author editorials, articles and reports on preda-tory mortgage lending and mortgage abuses;3.Cause predatory mortgage lenders to cease theirpredatory lending practices;4.Cause predatory mortgage lenders to changetheir policies, practices and procedures;5.Cause predatory mortgage lenders to provide fair,reasonable and just compensation to the victimsof their predatory mortgage lending abuses;6.Conduct and sponsor seminars and conferenceson combating predatory mortgage lending;7.Create a “databank” and “database” of predatorymortgage lenders, their executives and employ-ees including their direct business and homephone numbers, home addresses, names andnumbers of spouses, neighbors and family mem-bers;8.Create a “databank” and “database” of predatorymortgage lending articles, reports, complaints,cases, litigation, policies, memos, codes, anddocuments for regulation, litigation, and corpo-rate resolution support;9.Define forms and types of predatory mortgagelending practices, schemes and abuses;10.Draft, propose and put forth corporate resolu-tions, ordinances, regulations and laws on preda-tory mortgage lending;11.Educate consumers, the public, the courts, Con-gress and corporate America on predatory mort-gage lending practices, frauds and schemes andtheir consequences;12.Expose predatory mortgage lenders, their lead-ers and supporters;13.Focus attention on the national and commu-nity crisis of predatory mortgage lending;14.Infiltrate predatory mortgage lenders and exposetheir illegal, fraudulent and criminal behavior;15.Insure that banks, investment firms and mort-gage servicers comply with Federal and state lawsand regulations;16.Investigate and confirm predatory mortgagelending abuses;17.Organize protests, boycotts, letter writing, e-mailand telemarketing campaigns against predatorymortgage lenders, their leaders and supporters;18.Provide regulators, lawyers, press, media, civicgroups, Congress, State AGs and others investi-gating predatory mortgage lending with a “blue-print” and “genetic” map of how predatory lend-ers operate their various schemes, scams and pro-gramming methods;19.Shed focus and light on predatory mortgage lend-ing practices; and20.Support “fair” and reasonable” alternatives tolitigation in predatory mortgage lending cases.
PURPOSE OF REPORT
The purpose of this report is to provide indi-viduals and organizations examining, investigatingand studying predatory lending and mortgage abuse.Whether you are a journalist, law maker, lawyer, con-sumer advocate, banker, mortgage servicer, regula-tor or investigator, this report is designed to provideyou useful and topical facts, information and dataon predatory lending.
Our Objectives Include:
1.Create A Definition Of Predatory Lending;2.Defining Various Forms Of Predatory Lending;3.Highlight Predatory Lending Practices;4.Offer Recommendations & Suggestions;5.Outline Schemes, Scams & Abuses; and6.Provide Information, Facts & Data On Preda-tory Lending.
SPONSORSHIP OF REPORT
12. Expose predatory mortgage lenders, their lead-
ers and supporters;
Preparation of this report was conducted by
13. Focus attention on the national and commu-
Americans Against Mortgage Abuse»
[AAMA].
nity crisis of predatory mortgage lending;
AAMA is a newly formed nonproft established to
14. Infiltrate predatory mortgage lenders and expose
combat predatory lending. AAMAISJmission is Cb
their illegal, fraudulent and criminal behavior;
defend and protect Americans and the American
15. Insure that banks, investment frms and mort-dream of home ownership from unlawful, fraudu-
gage servicers comply with Federal and statelaws
lent, criminal, unethical and illegal acts.U
and regulations;
16. Investigate and confrm predatory mortgage
Our Goals Include:
lending abuses;
17. Organize protests, boycotts, letter writing, e-mail
1.
Author and conduct consumer and educational
and telemarketing campaigns against predatory
research into predatory mortgage lending and
mortgage lenders, their leaders and supporters;
mortgage abuses;
18. Provide regulators, lawyers, press, media, civic
2. Author editorials, articles and reports on preda-
groups, Congress, State AGs and others investi-
tory mortgage lending and mortgage abuses;
gating predatory mortgage lending with a ®lue-
3. Cause predatory mortgage lenders to cease their
printUand ( eneticUmap of how predatory lend-
predatory lending practices;
ers operate their various schemes, scams andpro-
4. Cause predatory mortgage lenders to change
gramming methods;
their policies, practices and procedures;19. Shed focus and light on predatory mortgagelend-
5.
Cause predatory mortgage lenders to provide fair,
ing practices; and
reasonable and just compensation to the victims
20. Support C airTand 4a sonablet alternatives to
of their predatory mortgage lending abuses;
litigation in predatory mortgage lending cases.6. Conduct and sponsor seminars and conferences
on combating predatory mortgage lending;
PURPOSE OF REPORT
7. Create a CdatabankUand Qlatabas&of predatory
mortgage lenders, their executives and employ-
The purpose of this report is to provide indi-
ees including their direct business and home
viduals and organizations examining, investigatingphone numbers, home addresses, names and
and studying predatory lending and mortgage abuse.numbers of spouses, neighbors and family mem-
Whether you are a journalist, law maker, lawyer con-
bers;
sumer advocate, banker, mortgage servicer, regula-
8.
Create a CdatabankUand QlatabaseUof predatory
tor or investigator, this report is designed to provide
mortgage lending articles, reports, complaints,
you useful and topical facts, information and datacases, litigation, policies, memos, codes, and
on predatory lending.
documents for regulation, litigation, and corpo-rate resolution support;
Our Objectives Include:
9. Define forms and types of predatory mortgage
lending practices, schemes and abuses;
1.
Create A Definition Of Predatory Lending;
10. Draft, propose and put forth corporate resolu-2. Defining Various Forms Of Predatory Lending;
tions, ordinances, regulations and laws on preda-
3. Highlight Predatory Lending Practices;
tory mortgage lending;
4. Offer Recommendations & Suggestions;
11. Educate consumers, the public, the courts, C on-
5.
Outline Schemes, Scams & Abuses; and
gress and corporate America on predatory mort-
6. Provide Information, Facts & Data On Preda-
gage lending practices, frauds and schemes and
tory Lending.
their consequences;
0
Document hosted athttp://www.jdsupra.com/post/documentViewer.aspx?fid=197d1b59-e33e-47e0-92b0-d61992e9ed22
 
Before we begin, did you know that:U.S. Government studies report that up to 70%percent of home mortgage loans contain errors?Accounting errors in home mortgage loans canrange from a few hundred dollars to tens of thou-sands of dollars?These so-called “errors” are in many circum-stances complex and fraudulent accountingschemes that banks and mortgage companies useto “play with your money” to generate additionalcash flow, income and profits?Most banks and mortgage companies know thatyou won’t ask how they “calculated” the “pay-off” or principal balance figure they quote you?A well-known bank once charged a customerover $3000.00 per month for five months [over$15,000] of escrow payments when the annualtaxes were only $2,608.28 and monthly P & Ipayments were only around $790.00?
A PREDATORY LENDING PRIMER
A well-known mortgage servicer owned by amajor Wall Street investment bank refers to itscustomers as “smucks” in their policy manuals?Some banks and mortgage companies have fore-closed or are foreclosing on homes, notes anddeeds of trusts they don’t even own or have aright to?Well-known banks and mortgage companies inFlorida are lying and providing perjured testi-mony, false affidavits and frivolous pleadings incases involving mortgage foreclosure to courtsin Florida?You or your family members and friends may beunknowingly be contributing to these abuses byhaving investments in your own IRA’s, stocks,mutual or pension funds that are holding mort-gage backed securities that deal with subprimelending?
 White-Collar Mafia Uses21st Century Loan Sharks To PreyOn Helpless Americans!
For the majority of Americans, their home is the largest single asset they will ever own. Home ownershipis part of the American Dream. Yet today, many elderly, minority, disabled, disadvantaged and non-Englishspeaking Americans are living the American Nightmare rather than the American Dream.Their dreams of home ownership and financial security are being stripped away by 21st Century loansharks backed by a new white collar Mafia. Instead of using guns and knives to intimidate and to rob theirvictims, the new weapons of choice are phones, computers, computer programs the mail and unscrupulouslawyers. These extortionists, con-artists and predators inflict harsher pain, suffering and injury upon theirvictims than a local loan shark can.Instead of breaking bones and knees, this new breed of crooks breaks dreams, lives, livelihoods and fami-lies. They illegally take away their victim’s homes, ruin their credit, destroy their families and damage theirbusinesses. Often, the scars left by these criminals last years and even a lifetime that takes longer to heal than abroken bone.
A PREDATORY LENDING PRIMER
Before we begin, did you know that:
U.S. Government studies report that up to 70%
A well-known mortgage servicer owned by a
percent of home mortgage loans contain errors?
major Wall Street investment bank refers to its
Accounting errors in home mortgage loans can
customers as (muckstin their policy manuals?
range from a few hundred dollars to tens of thou-
Some banks and mortgage companies have fore-
sands ofdollars?
closed or are foreclosing on homes, notes and
These so-called 6rrorstare in many circum-
deeds of trusts they donUeven own or have a
stances complex and fraudulent accounting
right to?
schemes that banks and mortgage companies use
Well-known banks and mortgage companies into (lay with your moneyUto generate additional
Florida are lying and providing perjured testi-
cash flow, income and profts?mony, false affidavits and frivolous pleadings in
Most banks and mortgage companies know that
cases involving mortgage foreclosure to courts
you wonUask how they C?alculatedTthe (?ay-in Florida?offUor principal balance fgure they quote you?
You or your family members and friends may be
A well-known bank once charged a customer
unknowingly be contributing to these abuses by
over $ 3000.00 per month for five months [over
having investments in your own IRAQ stocks,
$15,000] of escrow payments when the annual
mutual or pension funds that are holding mort-
taxes were only $2,608.28 and monthly P & I
gage backed securities that deal with subprimepayments were only around $790.00?
lending?
White-Collar Mafia Uses21st Century Loan Sharks To PreyOn Helpless Americans!
For the majority of Americans, their home is the largest single asset they will ever own. Home ownership
is part of the American Dream. Yt today, many elderly minority disabled, disadvantaged and non-English
speaking Americans are living the American Nightmare rather than the American Dream.
Their dreams of home ownership and fnancial security are being stripped away by 21st Century loan
sharks backed by a new white collar Mafa. Instead of using guns and knives to intimidate and to rob their
victims, the new weapons of choice are phones, computers, computer programs the mail and unscrupulous
lawyers. These extortionists, con-artists and predators inflict harsher pain, suffering and injury upon their
victims than a local loan shark can.Instead of breaking bones and knees, this new breed of crooks breaks dreams, lives, livelihoods and fami-
lies. They illegally take away their victimkhomes, ruin their credit, destroy their families and damage their
businesses. Often, the scars lef by these criminals last years and even a lifetime that takes longer to heal than a
broken bone.
0
Document hosted athttp://www.jdsupra.com/post/documentViewer.aspx?fid=197d1b59-e33e-47e0-92b0-d61992e9ed22
 
AMERICA’S NEW “WHITE-COLLAR MAFIA”
They use any one of the dozens of “predatorylending” practices which we are too accustomed toseeing and hearing each day. Predatory Lending iscurrently the focus of dozens of Federal and Stateinvestigations by regulatory and legal agencies. TheU.S. Congress and many state legislatures and citycouncils are considering laws and ordinances to pre-vent its spread. According to recent reports, over 35States are cracking down on predatory lending.Predatory lending bills introduced in state legisla-tures have already fulfilled predictions of becomingthe year’s hot issue.Congress has its own national bill. Rep JohnLaFalce, D-N.Y., the ranking minority member of the House Banking & Financial Services Commit-tee, says “Consumers with flawed credit histories arein some cases being preyed upon by financial insti-tutions that offer more than they deliver. I believethe committee could benefit from a comprehensivehearing devoted to the issue.”Many of the proposed state predatory lendingbills lower thresholds found under federal regula-tions. Minnesota’s bill reduces the ability of mortgage lenders to charge points and fees and itvirtually eliminates balloon payments.Brian Israel, president of the Illinois MortgageBankers Association, expressed concern that preda-tory lenders are, in the eyes of legislators, giving allsubprime lenders a black eye. “Predatory lending isnot synonymous with subprime lending,” This hasbecome the primary “mantra” of banks and servicerswho are finding it hard to justify an 18% mortgagesold to an 80 year old woman with little or poor credit,but 80% to 100% equity in her home.Members of this new “white collar Mafia” arerather hard to distinguish for they dont look like theguys in Goodfellas, the Godfather or any of the ur-ban street gangs you have seen on television. They’renot even from Italy, Latin America or the Far East.These unassuming men and women live in mod-est to upscale neighborhoods and are attired in AnnTaylor, Brook Brothers or Armani suits. They caneven be the new next door neighbor or the personsitting next to you in your church or synagogue.They earn from $35,000 to over $20 milliondollars per year in their new career. They are titledloan collectors and “foreclosure specialists” at a mort-gage servicer to the CEO and chairman of a Fortune500 company or Wall Street investment bank.They don’t deal drugs, supply arms, run num-bers, fix horse races or take money for protection.Yet, they have a worldwide distribution network inthe hundreds of billions of dollars. Each day they goto work with the goal of devising new complex fi-nancial derivative products, accounting methods,models, and schemes that stay one step away fromthe regulators and one foot ahead of the law.You may be familiar with the term “using otherpeople’s money.” It became popular in the late 80swhen real estate scam artists sold millions of get richquick kits showing how to buy and sell real estatewith little or no money down.Now, in an effort to increase personal salariesand bonuses and corporate earnings, profits, returnson investment and stockholder dividends they preyupon the least educated and less fortunate Americans.
AMERICA'S NEW "WHITE-COLLAR MAFIA"
Members of this new (white collar Mafalare
They use any one of the dozens of (?redatory
rather hard to distinguish for they donTJlook like the
lendinglpractices which we are too accustomed to
guys in Goodfellas, the Godfather or any of the ur-
seeing and hearing each day. Predatory Lending is
ban street gangs you have seen on television.TheyTrk
currently the focus of dozens of Federal and State
not even from Italy, Latin America or the Far East.
investigations by regulatory and legal agencies. The
These unassuming men and women live in mod-
U.S. Congress and many state legislatures and city
est to upscale neighborhoods and are attired in Ann
councils are considering laws and ordinances to pre-
Taylor, Brook Brothers or Armani suits. They can
vent its spread. According to recent reports, over 3 5
even be the new next door neighbor or the person
States are cracking down on predatory lending.
sitting next to you in your church or synagogue.
Predatory lending bills introduced in state legisla-
They earn fom $35,000 to over $20 million
tures have already fulfilled predictions of becoming
dollars per year in their new career. They are titled
the yearlSJhot issue.
loan collectors and (?breclosure specialistsUat amort-
Congress has its own national bill. Rep John
gage servicer to the CEO and chairman of a Fortune
LaFalce, D-N.Y, the ranking minority member of
500 company or Wall Street investment bank.
the House Banking & Financial Services Commit-
They donTtJdeal drugs, supply arms, run num-
tee, says CY; onsumers with flawed credit histories are
bers, fix horse races or take money for protection.
in some cases being preyed upon by fnancial insti-
Yet, they have a worldwide distribution network in
tutions that offer more than they deliver. I believe
the hundreds of billions of dollars. Each day they go
the committee could beneft from a comprehensive
to work with the goal of devising new complex f-
hearing devoted to the issue.U
nancial derivative products, accounting methods,
Many of the proposed state predatory lending
models, and schemes that stay one step away from
bills lower thresholds found under federal regula-
the regulators and one foot ahead of the law.
tions. MinnesotalSJbill reduces the ability ofYou may be familiar with the term Casing other
mortgage lenders to charge points and fees and it
peoplelSJmoney.U It became popular in the late 80s
virtually eliminates balloon payments.
when real estate scam artists sold millions of get rich
Brian Israel, president of the Illinois Mortgage
quick kits showing how to buy and sell real estate
Bankers Association, expressed concern that preda-
with little or no money down.
tory lenders are, in the eyes of legislators, giving all
Now, in an effort to increase personal salaries
subprime lenders a black eye.
4redatory lending is
and bonuses and corporate earnings, profts, returns
not synonymous with subprime lending,t This has
on investment and stockholder dividends they prey
become the primary QnantraUof banks and servicers
upon the least educated and less fortunate Americans
who are finding it hard to justify an 18% mortgage
sold to an 80 year old woman with little or poor credit,
but 80% to 100% equity in her home.
0
Document hosted athttp://www.jdsupra.com/post/documentViewer.aspx?fid=197d1b59-e33e-47e0-92b0-d61992e9ed22

Activity (5)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
ysaiasv liked this
puretrust liked this
sutra015632 liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->