Ohio Mortgage Lenders May Face Prosecution
An article published in the USA Today takes a look at the plans of Ohio’s government to get aggressive with subprime mortgage lenders. According to the article:
Ohio’s governor and attorney general said Thursday they would issue subpoenas and take other aggressive measures against subprime mortgage lenders.
The subpoenas could lead to possible prosecution against lenders under antitrust and civil rights laws, as well as the Consumer Sales Practices Act.
The announcement came about a month after Gov. Ted Strickland asked the lenders to enter an agreement to help struggling homeowners stay in their homes through various measures, such as offering six months’ notice before an adjustable rate mortgage was to reset.
“Their refusal to sign the compact speaks volumes about their crass disregard for the people they have hurt and the communities they have destroyed house by house, street by street, block by block,” Ohio Attorney General Marc Dann said.
It’s good to see a government standing up for its people. Yes, the blame for getting in debt rests almost entirely on the shoulders of the borrower, but mortgage lenders could be doing more to help them payoff mortgage loans. It would have no large monetary toll on the companies, and in fact would help prevent some cases of foreclosure. Hopefully more states follow in the footsteps of Ohio to try to better the mortgage industry.
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